Dutch Economy in Focus – Full power ahead in 2018

by: Nico Klene

  • The Dutch economy is set to grow by 3.25% in 2017, the highest rate since 2007
  • Improving economic barometers point to further strong growth
  • GDP growth can again reach around 3% in 2018, driven by the expanding global economy and the spending impulse from the new cabinet
  • Economic growth is likely to decelerate in 2019
  • The number of jobs is rising strongly. This will push down unemployment, but at a slower pace than jobs growth as more people are entering the labour market
  • Inflation to rise slightly in 2018 on e.g. stronger wage increases and more rental increases. A rapid acceleration will follow in 2019 when the low VAT rate is raised
  • The EMU surplus will decrease slightly in 2018 due to extra public spending
Dutch-Economy-in-Focus-Dec17.pdf (537 KB)
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Dutch economy powering ahead

The Dutch economy continues to surprise with expected growth of around 3.25% in 2017 – partly thanks to the acceleration in world trade growth. The prospects for 2018 are also favourable. Scores of mood indicators in the Netherlands and the wider eurozone are sky high, confirming the economy’s current vigour. And a further impulse will come from the extra public expenditures outlined in the new Coalition Agreement. This means that around 3% growth is again likely in 2018.

 

Please read the full report