Dutch Economy in Focus – Growth continues to accelerate

by: Nico Klene

  • The Dutch economy is doing well. We expect growth of nearly 2.5% in 2017 (2016: 2.1%)
  • GDP rose less fast in the first quarter than in the preceding quarter. However, this slowdown was due to a lower volume of gas extraction. Disregarding this effect, GDP would actually have risen more than in the last quarter of 2016
  • The high level of all manner of economic barometers suggests that economic growth was still strong at the start of the second quarter
  • The stronger rise of GDP in 2017 has been mainly due to exports, household consumption and business investment
  • The rate of expansion will slow somewhat in the second half of 2017. This will cause the increase in GDP to slip back to around 1.75% in 2018
  • Thanks to the burgeoning level of economic activity, the number of jobs is increasing faster than last year. However, the decline in unemployment is lagging behind slightly as more and more people are entering the labour market
  • The public sector’s EMU balance improved significantly last year and the deficit has been transformed into a surplus. However, no further improvement seems likely this year. This is due to a number of expenditure setbacks and extra spending commitments undertaken by the government. However, the surplus may increase again in 2018

The full analysis:

Dutch-Economy-in-Focus-June17.pdf (627 KB)