Kingdom of the Netherlands–The Netherlands: 2024 Article IV Consultation-Press Release; and Staff Report

Author: International Monetary Fund. European Dept.

Volume/Issue: Volume 2024 Issue 085

Publication date: April 2024

ISBN: 9798400271724

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Business and Economics - Statistics , International - Economics , Public Policy- Environmental Policy , Inflation , Labor , Economics- Macroeconomics , Money and Monetary Policy , government Finance statistics yearbook , IMF staff calculation , core inflation persistence , EMU aggregate , consultation cycle , Labor markets , Inflation , Labor shortages , Fiscal stance , Europe

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Summary

The economy has cooled, but signs of overheating remain. After two years of strong recovery, growth decelerated in 2023, reflecting the energy shock, tighter financial conditions, and a slowdown in key trading partners, particularly Germany. Still, core inflation remains elevated, reflecting a tight labor market, robust wage growth, and healthy profit margins. Fragmented results in November elections are leading to a prolonged government formation, with possible implications for pro-growth and climate policies.