Dutch Economy in Focus – Growth sharply lower

Dutch economic growth to fall further this year – for the second year in a row.Growth forecast for 2019 again revised down: from 2% to 1.4%. Mainly due to the stuttering international economy.Private consumption and investment also lose upward momentum this year. The stronger increase in government spending acts as a partial counterweight. All in all, the lion’s share of this year’s economic growth will be domestically-driven.In 2020 economic growth may rebound somewhat on a modest recovery in the eurozone.Unemployment is very low, but is showing no sign of falling further. The strong deceleration in economic growth will cause job growth to weaken. Unemployment will therefore rise again – particularly next year.Inflation is a lot higher this year than last, mainly due to the increase in the low VAT rate and environmental taxes.The government surplus widened further in 2018, but will narrow strongly this and next year.