Dutch economy to further decline: European Commission

 The Dutch economy in 2013 will decline more than previously predicted, the spring forecast of the European Commission (EC) published on Friday showed.According to the EC report,Cast iron tubs real GDP is forecast to continue to shrink in 2013 at minus 0.8 percent, while in earlier predictions the forecast predicted a reduction of 0.6 percent. However, growth is expected to return gradually to positive territory from the second quarter of the year."This is due in particular toUsed cranes strong exports of goods," the report states. Domestic demand, however, is forecast to remain depressed into 2013, as budget consolidation and negative wealth effects, chiefly emanating from the housing market, continue to pose a drag on the Dutch economy. 

The EC expects domestic demand to gradually pick up in 2014, with real GDP increasing by 0.9 percent.According to the forecast, inflation in the Netherlands will not decrease,Household scissors but is likely to stabilize at 2.Household scissors8 percent in 2013, before easing further to 1.5 percent in 2014.The EC also expects Dutch employment to be on the rise in 2013 to 6.9 percent and even to 7.2 percent in 2014. 
"With the prolonged weakness in economic activity, buffers of firms are starting to become depleted as the private sector faces a continuous financial drag and an increasing number of bankruptcies," the report states.Like all countries in the eurozone, the Netherlands should bring its overall budget downfall within the EU's limit of 3 percent of gross domestic product. But according to the report, it is unlikely that the Netherlands will meet these targets anytime soon,Silicone Wristbands as the general government deficit is projected to stabilize at 3.6 percent of GDP.The current forecast did not incorporate the agreement recently achieved between the government and social partners about an additional consolidation package for 2014.