A river under the bridge in the Netherlands

Netherlands Economic Forecast

Netherlands Economic Outlook

After rebounding in sequential terms in Q4 last year, activity contracted in Q1 this year. Declining exports, stagnating private consumption and slower public spending growth more than offset an acceleration in investment. Turning to Q2, our panelists project a rebound. In April, wages accelerated, inflation decelerated, and the unemployment rate fell further compared to the Q1 averages. Moreover, consumer confidence improved in April–May, and the energy price cap in place since January continued to support disposable income, boding well for private consumption. That said, business optimism and hiring intentions fell in April compared to the Q1 average. In politics, on the heels of their victory in the provincial elections in March, the Farmer-Citizen Movement (BBB) is set to become a significant force in the Senate after the elections on 30 May.

Netherlands Inflation

Harmonized inflation accelerated to 5.8% in April (March: 4.5%) due to rebounding transport prices and a smaller decline in housing prices. Inflation is set to more than halve this year compared to last on a tougher base effect, capped energy prices and weaker demand. Rising commodity prices and a tight labor market are upside risks.

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

Netherlands Economic Data

2017 2018 2019 2020 2021
Population (million) 17.1 17.2 17.3 17.4 17.5
GDP (EUR bn) 738 774 813 797 855
GDP per capita (EUR) 43,212 45,049 47,046 45,757 48,954
Economic Growth (Nominal GDP, ann. var. %) 4.2 4.9 5.0 -2.0 7.4
Economic Growth (GDP, ann. var. %) 2.9 2.4 2.0 -3.9 4.9
Domestic Demand (ann. var. %) 2.3 2.4 3.0 -4.2 3.9
Private Consumption (ann. var. %) 2.1 2.2 0.9 -6.4 3.6
Government Consumption (ann. var. %) 0.9 1.7 2.8 1.6 5.2
Fixed Investment (ann. var. %) 4.2 3.6 6.2 -2.6 3.3
Exports (G&S, ann. var. %) 6.5 4.3 2.0 -4.3 5.2
Imports (G&S, ann. var. %) 6.2 4.7 3.2 -4.7 4.0
Industrial Production (ann. var. %) 1.4 0.6 -0.9 -3.6 4.8
Retail Sales (ann. var. %) 3.0 2.9 2.3 4.2 2.9
Disposable Income (ann. var. %) 1.0 2.7 2.4 2.3 1.9
Unemployment (% of active population, eop) 5.4 4.6 4.3 4.9 3.8
Unemployment (% of active population, aop) 5.9 4.9 4.4 4.9 4.2
Fiscal Balance (% of GDP) 1.4 1.5 1.8 -3.7 -2.4
Public Debt (% of GDP) 57.0 52.4 48.5 54.7 52.5
Inflation (HICP, ann. var. %, eop) 1.2 1.8 2.8 0.9 6.4
Inflation (HICP, ann. var. %, aop) 1.3 1.6 2.7 1.1 2.8
Inflation (PPI, ann. var. %, aop) 4.8 3.0 0.9 -4.2 12.5
10-Year Bond Yield (%, eop) 0.50 0.39 -0.08 -0.50 -0.03
Stock Market (var. of AEX %) 12.7 -10.4 23.9 3.3 27.7
Current Account Balance (EUR bn) 65.8 72.1 56.3 41.0 62.2
Current Account Balance (% of GDP) 8.9 9.3 6.9 5.1 7.3
Merchandise Trade Balance (EUR bn) 72 72 60 62 63
Foreign Direct Investment (EUR bn) 12 77 -13 -86 -71

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.

Free Sample Report
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