|Dutch Economy Shows Real Signs of Improvement|
The Dutch economy is improving slowly but surely this year, and will further accelerate in 2015 and 2016, the Dutch Central Bank DNB said in its half-year report.
In 2013, the Dutch economy shrank by 0.8 percent, but showed already modest growth since the second quarter of 2013. The growth rate this year is still modest at 0.2 percent, caused by one-off factors. However, the underlying trend is "unmistakably" economic recovery, the DNB siad.
When adjusted for one-off factors, such as the limited gas production due to the exceptionally mild winter, the economic performance over recent quarters has been rather stronger on average than the forecast by DNB six months ago.
According to the DNB's biannual estimates economic growth will move to 1.6 percent in both 2015 and 2016. Unemployment will fall gradually over the course of 2014, and the DNB predicts a cautious recovery in the housing market.
"The rate of improvement in corporate investment, in particular, since mid-2013 is striking. Residential investment and private consumption have also surpassed expectations. Despite this, the Dutch economy is not yet running at full strength. Many potential workers are standing idly by on the sidelines, unemployed.
"In addition, households, banks, pension funds and the government are all still engaged in strengthening their financial balance sheets. This is dampening domestic spending, albeit to an increasingly limited degree."
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Published on our website on June 19, 2014