October 28, 2020

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Budget Daily Pieces Leaked: The Economy Is Growing, But Unemployment Is Rising

Budget Daily Pieces Leaked: The Economy Is Growing, But Unemployment Is Rising

The cabinet continues to expect economic growth of 3.5 percent for the next year. Unemployment continues to rise, but on average the purchasing power of the Dutch will increase by 0.8 percent. RTL Nieuws reports this on the basis of the most important Prinsjesdag pieces. Insiders say the percentages can still differ slightly on Budget Day.

The question is, what exactly are the numbers worth? Due to the corona crisis, the near future is very uncertain. If there is a second wave, the economy could have much worse weather than currently assumed. According to the sources, the most important thing is whether people can keep their jobs. Unemployment is currently expected to rise to 545,000 people.

An increase in purchasing power is particularly likely for employees. They improve by 1.2 percent. Beneficiaries and retirees receive 0.5 and 0.4 percent, respectively, if everything goes well.

Drawing board

According to political reporter Ron Fresen, these are numbers from the drawing board. Averages, but they don’t tell you anything about the reality in people’s homes. “The unemployment figures show that the government’s support packages can still prevent much additional unemployment, but there, too, there is great uncertainty as to whether this will continue to work.”

Fresen: “So it’s a bit like with grades that you sometimes heard at school in the past. The teacher said: I’ll tell you, but you can quickly forget about them.”