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Dutch government says 2020 debt-to-GDP to hit 57.4% due to coronavirus support

The government ran a budget surplus of 1.7% in 2019. Last week the government's economic forecasting agency said it expects economic growth to rebound by 2.8% in 2021 after contracting 4.2% this year.

Reuters | Amsterdam | Updated: 30-11-2020 22:38 IST | Created: 30-11-2020 22:30 IST
Dutch government says 2020 debt-to-GDP to hit 57.4% due to coronavirus support
Representative image Image Credit: StoryBlocks

The Dutch government expects its debt-to-GDP ratio to have risen to 57.4% by the end of 2020 as a result of heavy spending to support the economy during the coronavirus pandemic, it said on Monday. Dutch debt to gross domestic product (GDP) stood at 48.7% at the end of 2020, making it one of the few countries to adhere to euro zone rules that allow a maximum of 60%.

The budget deficit will be around 6.2% this year, the finance ministry said, high but below a forecast of 7.2% given by Finance Minister Wopke Hoekstra in September. The country's economy performed better than expected in the late summer and fall before a second wave of COVID-19 cases led to a second, partial lockdown that is ongoing.

"The Cabinet has spent billions on one-time support to prevent mass bankruptcies and unemployment," the ministry said in a statement. The government ran a budget surplus of 1.7% in 2019.

Last week the government's economic forecasting agency said it expects economic growth to rebound by 2.8% in 2021 after contracting 4.2% this year.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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