NL Economic outlook 2009-10 - Jan. 2009

The Netherlands Bureau for Economic Policy Analysis released its analysis for Dutch economic prospects for the short and medium term on December 8. The credit crisis is causing a drop in economic activity in the Netherlands that has not occurred since the early 1980s. The Dutch economy is expected to shrink by ¾% in 2009. Exporting firms are being hit particularly hard by the international economic malaise. Furthermore, private non-residential investment is being inhibited not only by diminished production but also because the sources of financing are drying up. The new projections include a modest recovery of both world trade and the granting of credit. This will stimulate Dutch economic growth, resulting in an increase of 1% GDP in 2010. The uncertainties about the timing of the recovery are considerable, however. Due to the slackening economy, unemployment will rise markedly in the next two years, to 6½% in 2010.
Read more...