AMSTERDAM, Aug 16 Reuters Economic growth in the Netherlands is seen at 0.6 in 2024, the government39;s policy adviser CPB said on Friday, a downgrade from 1.1 following a weaker than expected first half of the year.

A forecast for a rebound to 1.6 in 2025 remained unchanged, but the agency said the budget deficit was set to rise to close to 3 next year, the maximum permissible under European Union budgetary rules.

The projections for euro zone39;s fifthlargest economy will play a key role in budget negotiations under way for the new conservative government of Prime Minister Dick Schoof.

Parties in Schoof39;s coalition are looking to spend more on healthcare and housing.

The government39;s finances are worsening, CPB director Pieter Hasekamp said in a statement, pointing to larger deficits expected in the late 2020s due to higher social security, healthcare and defence costs, as well as higher interest payments on the national debt.

Reporting by Toby Sterling; Editing by Christina Fincher and Kevin Liffey

Source Reuters