EU Predicts Catch-Up Race For Dutch Economy
BRUSSELS, 18/11/05 - The EU economy is expected to grow by more than 2 percent annually in the coming years, though rising oil prices could throw a spanner in the works. The Netherlands, for years at the bottom of the EU class, will move up, according autumn projections published by the European Commission yesterday. This year, projected Dutch GDP growth of 0.5 percent will beat only Italy and Portugal. But the rate will pick up to 2 percent in 2006 and 2.4 percent in 2007, lifting the Netherlands above the eurozone countries' projected averages (1.9 percent in 2006 and 2.1 percent in 2007). The 2005 eurozone growth forecast is 1.3 percent. Germany, Europe's biggest economy, is expected to see GDP growth of 0.8 percent this year, rising to 1.2 and 1.6 percent in the following years. Spain will maintain the rapid pace of recent years, and growth in France will rise to over 2 percent. Only Italy and Portugal are seen lagging behind.
Outside the eurozone, growth will be much more rapid, thanks to the new East European member states, where growth rates of over 4 percent are the rule rather than the exception. For the EU as a whole, GDP growth next year is projected to rise to 2.1 percent next year and 2.4 percent in 2007, from 1.5 percent this year.
Economic growth will reduce the eurozone unemployment rate from 8.9 percent last year to 8.1 percent in 2007. The Dutch jobless rate will be above 5 percent this year for the first time for years, but will come down to 4.2 percent in 2007.
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