Dutch Economy May Shrink 7.8 Percent With Global Crisis - Bloomberg

Dutch Economy May Shrink 7.8 Percent With Global Crisis - Bloomberg: A global crisis with a 15 percent drop in global trade would cause the Dutch economy to contract 7.8 percent within five years because it depends on exports, the government said.

The budget deficit may rise to 4.4 percent of gross domestic product under such a scenario, Finance Minister Jan Kees de Jager said in a letter to parliament in The Hague yesterday. The banking industry would have sufficient reserves to survive such a crisis without state support, he said.