Dutch Economy in Focus – Economy will benefit from ECB policy

by: Philip Bokeloh

Dutch-Economy-in-Focus - 5 February 2015 - Economy will benefit from ECB policy .pdf ()

Dutch economy: ECB’s policy will benefit the economy

The Dutch export sector is continuing to benefit from expanding world trade and the lower euro. An improvement is also visible in domestically-oriented sectors. One important reason is that domestic spending is no longer decreasing. After several years of contraction, retail sales edged higher in 2014. Construction activity is also perking up. In addition, there are fewer corporate failures and dismissal requests. The improvement in the labour market is bolstering household confidence, and the recovery in the housing market is further brightening the mood.

We have revised our GDP forecast for 2016 up, reflecting the oil price drop, the expected further decline in the euro and the ECB’s QE programme.

The cabinet has achieved a breakthrough with its housing market adjustments and has also implemented far-reaching reforms in other key areas, including healthcare and pensions. And it is not finished. Alongside the major task of ensuring the successful decentralisation of government tasks to municipal level, the cabinet is also eyeing a pensions and tax overhaul to make these systems future-proof