You are here

Dutch economic growth to slow on hit from coronavirus

[AMSTERDAM] Economic growth in the Netherlands is set to slow to its lowest level in seven years in 2020 and could be hit even harder if the coronavirus continues to spread, government policy adviser CPB said on Tuesday.

Growth in the euro zone's fifth largest economy is expected to decelerate from 1.7 per cent to 1.4 per cent this year and 1.6 per cent in 2021, the CPB said.

The forecast for 2020 is slightly more optimistic than the 1.3 per cent expansion that was pencilled in December, but the CPB warned of major uncertainties surrounding the coronavirus outbreak.

If the virus were to spread all over Asia and Europe and last until the second half of the year, growth could skid to 0.9 per cent this year, with only a modest rebound to 1.3 per cent in 2021, the government's main policy adviser said.

The Organisation for Economic Cooperation and Development on Monday warned that the epidemic is plunging the global economy into its worst downturn since the financial crisis, and urged governments and central banks to fight back to avoid an even steeper slump.