Renewed growth in Dutch economy from third quarter onwards, but downturn will reverberate | | In the baseline projections, which assume no large-scale new physical contact restrictions are needed, the economy will shrink by 5% in 2020, followed by 3% growth in 2021. Unemployment will rise up to 7% in 2021. These are the conclusions of the concept Macro Economic Outlook (cMEV) 2021, recently published by CPB Netherlands Bureau for Economic Policy Analysis. These projections form the starting point for the Dutch Cabinetâs final decision-making process on the 2021 budget. They include the agreed policy up to the end of July. This means that the projections currently still assume the financial support policy to not be continued in October. The projected recovery is largely determined by the development of the pandemic. To do justice to this uncertainty, a scenario is also included in which large-scale physical contact restrictions will once again be implemented. Under such a scenario, the economy will shrink also in 2021, and unemployment will increase to 10%. | | Read more... |
|
|
