AMSTERDAM - THE Dutch economy will shrink by 0.5 per cent in 2009 and the Dutch budget will show a deficit instead of a surplus, Dutch Finance Minister Wouter Bos said in a newspaper interview published on Saturday.

'Everything now shows that the economy will shrink by 0.5 per cent in 2009,' Mr Bos told Dutch daily Trouw. A Finance Ministry spokesman confirmed Mr Bos's comment.

It was 'inevitable' that the Dutch budget would show a deficit next year, Mr Bos told the paper.

He did not give a figure and was waiting for the government's macroeconomic think tank CPB, which will publish revised economic forecasts for the 2008-2010 period on Monday, the spokesman said.

In September, CPB expected a budget surplus equivalent to 1.3 per cent of gross domestic product (GDP) in 2009 and an economic growth rate of 1.25 per cent. -- REUTERS