THE HAGUE, Sept 16: The Netherlands announced a budget surplus Tuesday and proclaimed its economy healthy amid global financial turmoil but trimmed growth projections and took steps to curb rising inflation.

“The Dutch economy is in good shape despite global economic turbulence,” said a budget statement. “(But) the Netherlands has not been left unscathed and its economy is cooling ...”The finance ministry predicted the country would be able to achieve and even exceed its plans for a budget surplus four years in a row to 2011, even as much of the rest of Europe battles worrying deficits.

It forecast a surplus of 1.2 per cent for 2008 and 2009, 0.8 per cent for 2010, and 1.1 per cent for 2011. These were higher than last year’s predictions of 0.5, 0.6, 0.7 and one per cent -- mainly thanks to higher gas revenues from spiralling global energy prices.

“The national debt is expected to be about 40 per cent of GDP (gross domestic product) in 2009,” said a ministry statement -- compared to an average debt level of 65 per cent for the eurozone economies last year.

“By the end of the government’s term of office (in 2011), it (debt) is expected to have fallen to its lowest level in percentage terms since 1815.” The ministry trimmed 2008 growth predictions to 2.25 per cent, down from last year’s budget forecast of 2.5 per cent ut higher than the 1.3 per cent predicted for the eurozone and 1.4 per cent or the European Union. For 2009, Dutch economic growth was put at 1.25 per cent.

And it predicted inflation in the 2009 budget year to reach 3.25 per cent, hile revising its 2008 prediction to 2.75 per cent.—AFP