March 5, 2019 / 6:42 AM / 3 months ago

UPDATE 1-Dutch economic growth to fall to 1.5 pct in 2019 - CPB

(Adds CPB quote, more detail)

AMSTERDAM, March 5 (Reuters) - Economic growth in the Netherlands will slow faster than expected this year and is set to be its lowest since 2014, Dutch economic forecaster CPB said on Tuesday.

Dutch gross domestic product growth is expected to fall to 1.5 percent in 2019 and 2020, the CPB said. The government’s main economic adviser had in December predicted growth of 2.2 percent for 2019, after a 2.5 percent expansion last year.

“Years of high growth have come to an end, the Dutch economy is reverting to an average rate of growth”, the CPB said, citing uncertainties surrounding Brexit, U.S. trade policy and the state of the Chinese economy as the main reasons for the slowdown.

The Dutch economy has outperformed its peers in the euro zone in recent years, driving down unemployment to its lowest level in a decade.

But its main export engine is set to slow significantly this year, the researchers said, due to a fall in international trade, also dampening the growth of investments and consumption.

Rising wages and tax hikes will cause inflation rate to spike to 2.3 percent this year, before it falls back to 1.4 percent in 2020.

Reporting by Bart Meijer; editing by Christian Schmollinger and Shreejay Sinha

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