ING Research anticipates a cautious recovery of the Dutch economy in 2025, expecting a growth of 1.3% following a projected 0.8% growth in 2024. The modest growth is primarily attributed to consumer spending, as Dutch consumers generally have considerable purchasing power. However, businesses face significant challenges, including high costs for wages, raw materials, and energy, as well as ongoing labor shortages.
Marieke Blom, Chief Economist at ING, notes that the Netherlands is reaching the limits of its growth potential—not due to a lack of demand, but because the economy is struggling to keep up with it. While the number of job vacancies is expected to decrease in 2025, easing the tight labor market, companies may still find it difficult to meet demand.
Despite persistent inflation and rising food prices, most individuals have seen wage increases, leading to an expected rise in purchasing power. Whether consumers will spend this additional income or choose to save remains uncertain.
Geopolitical tensions are expected to continue into 2025. According to the report, the United States has announced import tariffs for multiple countries, which may pose barriers to Dutch exports. ING emphasizes that the impact on the Netherlands may be limited, but the U.S. economy could be more significantly affected as higher import costs are passed on to American consumers.
Source: NOS News