Netherlands: escaping stagnation with a new "polder model"?

In the Netherlands the real gross domestic product in 2002 increased by around 0.3%, which placed the country in the rear ranks of European states. The unemployment rate increased to 2.7% for the year, and inflation at 3.9% was one of the highest rates in western Europe. This year as well, the economy will remain weak, real GDP expanding only by around ¼%. The situation on the labour market will continue to deteriorate throughout the year, leading to an annual unemployment rate 4%. Inflation will weaken, however, amounting to just 2¾%. In 2004 economic activity will gain momentum and real GDP should grow by 1½%. The unemployment rate will remain at the approximate level of 2003, and consumer prices will increase by 1½%.