Economic recovery in sight, but coronavirus effects linger on

In the baseline projections, which assume that vaccination rates in the Netherlands and other European countries will quickly increase and lockdown restrictions can be phased out, the economy is expected to grow by over 2% in 2021 and 3.5% in 2022. Unemployment has remained remarkably low until now, partly due to ample support measures, but is expected to rise to 5% and subsequently decrease to 4.5% over the course of next year. This results from the new economic forecast for 2021 and 2022, published on 31 March by CPB Netherlands Bureau for Economic Policy Analysis.