EC forecasts sluggish growth of the Dutch economy, moderate growth for the euro zone

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The Dutch economy will grow by only 1.8% this year. This is the lowest growth rate the European Commission expects for the 19 euro countries in 2021. Next year, the recovery of the Netherlands will also lag behind with an expected growth rate of 3% if the euro zone emerges from the crisis. On the other hand, the economic blow last year in the Netherlands seems to have been less severe than expected, argues EU day-to-day administration.

In its so-called winter forecast, the commission notes that due to the vaccination programmes against corona, EC is’ cautiously optimistic’ about the prospects in Europe. EC predicts that the euro area will grow by 3.8% this year, as will next year.

The recovery in the Netherlands therefore seems to take a little longer, but the Netherlands also seems to have fallen less deeply. According to the commission, the Dutch economy shrunk by 4.1% in 2020. In November, EC was still counting on a decline of 5.3% and in July, a decline of 6.8%. Last year, the economy in the euro area shrank by an average of 6.8%.

Vice-President Valdis Dombrovskis sees light for the EU at the end of the tunnel. He expects the economy to pick up considerably in the second half of the year. “The prognosis gives hope in a time of uncertainty for all of us.”However, the exact picture remains uncertain for the time to come, due to the threat of new virus variants and lockdown measures. So much depends on the course of the vaccination programmes.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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