Euro Watch – Dutch-German growth gap will reverse

There has been a large gap between GDP growth in the Netherlands and Germany in 2018-2019.This can largely be explained by differences in the types of goods the two countries export, with Germany mainly focussed on industrial goods and the Netherlands on goods related to wholesale and retail trade, … … as well as by the destination of exports, with Germany more exposed to China and other EM and the Netherlands more orientated towards Europe. We expect growth in Germany to pick up moving into 2020, while the Dutch economy will lose momentum Consequently, the growth gap should disappear.