Fresh forecasts rock Dutch economy

Article reported that the Dutch government’s goal of restoring economic confidence through austerity struck a fresh obstacle in December 2012 after an official forecast predicted the economy would shrink in 2013.

The darkening outlook from the government’s Netherlands Bureau for Economic Policy Analysis (CPB) suggested the economy will contract by 0.5% in 2013. Earlier, the bureau had expected growth of 0.75%.

However, even though the budget deficit would remain above the eurozone target of 3%, the government should not now announce new austerity measures, the head of the CPB was reported as saying.

Website: Netherlands Bureau for Economic Policy Analysis (CPB) http://www.cpb.nl/en/about-cpb

Website: De Nederlandsche Bank (DNB) http://www.dnb.nl/en/home/index.jsp

ESO: Background information: Nervous consumer drags down Dutch economy http://www.europeansources.info/record/nervous-consumer-drags-down-dutch-economy/

DutchNews.nl, 20.12.12: New austerity measures not yet needed, says CPB chief http://www.dutchnews.nl/news/archives/2012/12/new_austerity_measures_not_yet.php

---