| The Dutch economic growth rate is slowing down due to the ill wind blowing from abroad. Export growth is declining. The waning growth in production has had remarkably little impact on the labour market, which remains tight with a, currently, continuing increase in vacancies and rapid employment growth. Unemployment will remain exceptionally low, according to the projections, but will increase slightly in 2020. Purchasing power will see a positive development because of policy and, in 2020, moderate inflation. The government budget will continue to be in surplus. US trade policy, the chances of a no-deal Brexit, and the instable situation in Italy are important downward risks to the Dutch economy. These are the conclusions by CPB Netherlands Bureau for Economic Policy Analysis in its latest June Projections. CPB director, Laura van Geest: âDespite a rather standard economic growth rate, employment growth will remain remarkably large. Wage increases will be lim ited, due to the tight labour marketâsomething that, incidentally, is not a uniquely Dutch phenomenon.â |
