The Dutch economy is increasingly growing under its own steam as domestic spending picks up, the Dutch central bank said in its latest half-yearly report on Monday.

After two years of contraction, the Dutch economy is projected to grow by 0.8% in 2014 and to pick up further in the years ahead, to 1.2% in 2015 and 1.5% in 2016, the central bank said.

This is, however, less than the bank forecast six months ago, when it put the 2015 and 2016 growth figure at 1.6%.

The growth will be due to ‘strongly improving consumer and producer confidence’ the bank said.

‘A more pronounced growth recovery will be hampered particularly by moderate global economic expansion,’ the statement said. The Dutch economy is largely driven by exports and this means these will grow ‘less vigorously than previously projected’.