However, the IMF remarked that potential external risks may impeded economic growth and advised the government to continue with reforms to tax and pension systems, based on the impact of an aging population.

“Notwithstanding encouraging near-term prospects,” commented the fund, “(IMF) directors considered that the risks to the economic outlook remain skewed to the downside.”

The Dutch Central Bank believes the economy will grow 2.2% in 2011, higher than its previous 1.6% prediction, says RNW. The Central Bank projects GDP will expand 1.7% in 2012 and 2.1% in 2013. The DNB, though, cautions that growth will likely slow in the second half of the year due to reduced global spending.

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Max Chen contributed to this article.