Dutch economic growth prediction for 2016 revised up to 2.4%

The Dutch economy is projected to grow more than previously expected, the Netherlands Bureau for Economic Policy Analysis (CPB) stated on Tuesday.

This year, the Dutch economy will increase by 2.0 percent, as expected in the CPB's forecasts of June 2015. However, the projected growth for 2016 has been revised up to 2.4 percent, more than the 2.1 percent expected in June.

"The economic recovery will continue, despite lower natural gas production levels," the CPB stated in a press release. "Next year, the recovery will be supported by the announced five-billion-euro (5.5 billion U.S. dollar) reduction in the tax burden, already incorporated in these projections."

As well, unemployment next year is expected to decrease from 6.9 percent of the workforce this year to 6.7 percent (or 600,000 people) in 2016, the government deficit will drop from 2.1 this year to 1.5 percent of GDP next year, and inflation in will increase further, from 0.5 percent in 2015 to 1.1 percent next year, as a result of the recovering economy.

The CPB figures form the basis of the government's decision-making process for the draft national budget and tax plan for 2016. This plan will be presented on Prinsjesdag (Prince's Day) on Sept. 15.

"The stronger economic growth is a good sign," said Finance Minister Jeroen Dijsselbloem in reaction to the new CPB figures in a press statement. "We are now going to calculate what this means for our budget...to jointly come to a final budget for 2016 in the forthcoming weeks."