A river under the bridge in the Netherlands

Netherlands Economic Forecast

Netherlands Economic Outlook

GDP declined again in sequential terms in Q2. Contractions in private consumption and exports, coupled with a slowdown in fixed investment, more than offset an acceleration in public spending. Still-high inflation and weakening global demand weighed on output. Turning to Q3, our panelists expect a rebound. Wage growth was above inflation for the first time in two years in July, supporting real incomes. That said, weak PMI and business confidence readings during the same month point to significant headwinds. Moreover, in July–August, consumer sentiment worsened slightly. In other news, following a legal battle with environmental activists, the country’s highest court ruled in favor of the construction of a major carbon capture project in August. This could play a key role in the country’s reduction of CO2 emissions. In politics, snap elections are due on 22 November.

Netherlands Inflation

Harmonized inflation decelerated to 5.3% in July (June: 6.4%) due to softer price pressures for food and a sharp decline in housing and utilities prices. Inflation will more than halve this year from 2022 due to slower demand growth and lower energy prices. Higher-than-expected commodity prices and labor market tightness pose upside risks.

This chart displays Economic Growth (GDP, annual variation in %) for Netherlands from 2013 to 2022.

Netherlands Economic Data

2018 2019 2020 2021 2022
Population (million) 17.2 17.3 17.4 17.5 17.6
GDP (EUR bn) 774 813 797 871 959
GDP per capita (EUR) 45,049 47,046 45,757 49,819 54,491
Economic Growth (Nominal GDP, ann. var. %) 4.9 5.0 -2.0 9.3 10.1
Economic Growth (GDP, ann. var. %) 2.4 2.0 -3.9 6.2 4.3
Domestic Demand (ann. var. %) 2.4 3.0 -4.2 4.7 3.8
Private Consumption (ann. var. %) 2.2 0.9 -6.4 4.3 6.5
Government Consumption (ann. var. %) 1.7 2.8 1.6 5.0 1.6
Fixed Investment (ann. var. %) 3.6 6.2 -2.6 2.9 1.8
Exports (G&S, ann. var. %) 4.3 2.0 -4.3 7.9 4.5
Imports (G&S, ann. var. %) 4.7 3.2 -4.7 6.2 3.8
Industrial Production (ann. var. %) 0.6 -0.9 -3.6 4.8 2.5
Retail Sales (ann. var. %) 2.9 2.3 4.2 2.9 0.1
Disposable Income (ann. var. %) 2.7 2.4 2.3 2.3 2.0
Unemployment (% of active population, eop) 4.6 4.3 4.9 3.8 3.5
Unemployment (% of active population, aop) 4.9 4.4 4.9 4.2 3.5
Fiscal Balance (% of GDP) 1.5 1.8 -3.7 -2.4 0.0
Public Debt (% of GDP) 52.4 48.5 54.7 52.5 51.0
Inflation (HICP, ann. var. %, eop) 1.8 2.8 0.9 6.4 11.0
Inflation (HICP, ann. var. %, aop) 1.6 2.7 1.1 2.8 11.6
Inflation (PPI, ann. var. %, aop) 3.0 0.9 -4.2 12.5 23.8
ECB Refinancing Rate (%, eop) 0.00 0.00 0.00 0.00 2.50
ECB Overnight Deposit Rate (%, eop) -0.40 -0.50 -0.50 -0.50 2.00
3-Month EURIBOR (%, eop) -0.31 -0.38 -0.55 -0.57 2.13
10-Year Bond Yield (%, eop) 0.39 -0.08 -0.50 -0.03 2.90
Stock Market (var. of AEX %) -10.4 23.9 3.3 27.7 -13.7
Exchange Rate (USD per EUR, eop) 1.14 1.12 1.22 1.14 1.07
Exchange Rate (USD per EUR, aop) 1.18 1.12 1.14 1.18 1.05
Current Account Balance (EUR bn) 72.1 56.3 41.0 105.5 88.3
Current Account Balance (% of GDP) 9.3 6.9 5.1 12.1 9.2
Merchandise Trade Balance (EUR bn) 71.6 60.1 61.7 73.2 73.6
Foreign Direct Investment (EUR bn) 76.7 -12.6 -86.1 -71.3 -63.1

Free Sample Report

Interested in Netherlands economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest