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Dutch economic growth less than anticipated
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Dutch economic growth less than anticipated

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© 2025 IamExpat Media B.V.
© 2025 IamExpat Media B.V.
Aug 17, 2018
Mina Solanki
Completed her Master's degree at the University of Groningen and worked as a translator before joining IamExpat. She loves to read and has a particular interest in Greek mythology. In addition to this, she is an avid rower.Read more

According to a new forecast by the Netherlands Bureau for Economic Policy Analysis (CPB), the Dutch economy is growing at a slower rate than previously anticipated. Next year, the economy will also grow at a reduced rate, according to the newest predictions.

New Dutch economic forecasts

In June, the CPB forecast economic growths of 2,9 percent for 2018 and 2,7 percent for the following year. Now, the bureau predicts slightly less growth, at 2,8 percent for this year and 2,5 percent for 2019.

Whilst the figures are slightly less than previously expected, the economy is still growing at an above average rate, just as it did in 2017, and is performing better than the average of other countries in the Eurozone.

The economic growth can be attributed to domestic spending, exports and corporate investments. The construction industry has also played an important role in the last quarter, as considerably more money has been invested in houses, office buildings and infrastructure.

Economic growth is also being spurred on by the expenditure of households, who, for the 17th consecutive quarter, have spent more than they did in the same period of the previous year.

Increasing employment and purchasing power in the Netherlands

The new report still gives great predictions regarding unemployment numbers, as these are expected to fall to a historically low level, namely 3,5 percent in 2019. Not only will there be less unemployment, the purchasing power of households is set to rise next year by 1,3 percent on average. This is due to lower income tax. This is a considerable increase, as this year, purchasing power rose by only 0,4 percent on average.

Those in employment will profit from an even larger increase in purchasing power, namely 1,4 percent. Pensioners will experience a 1,1 percent increase and those receiving benefits will have a 0,5 percent increase. Additionally, government debt is set to decrease further to 49 percent, from this year’s 53 percent.

Threats to the Dutch economy

That the Dutch economy is growing steadily is not to say that there are no threats that could have their consequences. For instance, the uncertainty surrounding Brexit, the trade agreement with the US and Italy’s economic policy could have a negative impact. The CPB will publish its definitive report on Prinsjesdag.

By Mina Solanki