Economy

Netherlands - Economic forecast summary (May 2014)

 

The economy is recovering after a double-dip recession, but growth is projected to be modest as households reduce their indebtedness, unemployment keeps rising and fiscal consolidation continues. Investment is expected to pick up gradually on the back of strengthening export growth.

Underlying fiscal consolidation is assumed to continue as set out in the coalition agreement, but the automatic stabilisers should be allowed to work freely. Although the authorities have already restricted mortgage interest rate deductibility, once the housing market recovers durably further measures to increase incentives for amortisation of mortgages should be taken. The planned labour market reforms need to be monitored closely to ensure they are effective in raising medium-term growth.

Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.

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