UTRECHT, Netherlands, Sept. 5, 2005 (PRIMEZONE) -- The Rabobank economists forecast that the Dutch economy will continue to strengthen cautiously in the second half of 2005. They put forward this view in their document on the state of the economy that was published in connection with the presentation of the interim figures of the Rabobank Group today. At this presentation the Chairman of the Executive Board, Bert Heemskerk, said that he applauds the Dutch government's measures to support purchasing power. "The government has pledged that a reduction in the tax and premium burden is on the way for consumers, but it has failed to include the business community in these measures. So even though the increase in the tax and premium burden connected with the new healthcare system is now being reversed, self-employed persons will not be any better off in the revised situation. And the business community is ultimately the engine of the economy," says Heemskerk.
Rabobank expects that the favourable development of the world economy will continue to support exports. The outlook for investment also appears to be good. This picture of economic recovery is confirmed by the growth in Rabobank's business lending. Dutch companies also clearly have a healthy solvency position. The Rabobank economists further ascertain that 2005 will still be a difficult year for some sectors, such as the retail trade.
While private consumption continues to be the missing link for the time being, there are signs indicating that private consumption is also set to pick up next year. The prospects for the labour market have improved in particular. The Dutch government's pledge to improve purchasing power furthermore offers prospects for higher growth in consumption. House prices will also continue to rise (by an expected 2% in 2005 and 2.5% in 2006).
Other anticipated international and national developments and Rabobank's views concerning the recently announced Dutch government measures are outlined in the enclosed economic document produced by the Rabobank Knowledge and Economic Research department.
---Click the link below to read the pdf-version of this release + State of the economy document ('Rabobank moderately positive about economy'):
http://hugin.info/133178/R/1010297/156928.pdf
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