ECONOMIC GROWTH SEEN SLUGGISH IN BENELUX COUNTRIES
Economic growth will remain sluggish in
the Netherlands and Belgium next year and unemployment may
rise, the Organisation for Economic Cooperation and Development
forecast.
    Belgium's GDP growth may slow down to 1.5 pct this year and
next year, bringing a rise in the number of jobless, the OECD
said in its semi-annual survey. Belgian inflation could
stabilise at 1.5 to 2.0 pct, while the current account surplus
will probably remain large at about three pct of GDP.
    While the Belgian government has made progress in trimming
its borrowing requirement, "it will probably be insufficient to
check the self-sustaining nature of the deficit," the OECD said.
    In the Netherlands real GDP growth will also slip to 1.5
pct this year and one pct in 1988, with Dutch exports becoming
less competitive and imports rising. "Employment is forecast to
decelerate as well, reflecting more sluggish growth in the
private sector and budgetary cuts," the report said.
    Dutch consumer prices are set to fall by 0.5 pct in 1987
and stay stable in 1988, partly as a result of declining
domestic gas prices.
    Luxembourg's economy, by contrast, will see slightly faster
growth in GDP this year as a result of an upward movement in
wages. But real growth in consumption will ease next year.
REUTER
