The Dutch central bank expects the country's economy to grow by 1.7% this year

The Hague, December 19 (Xinhua) -- The Dutch Central Bank released a forecast report for autumn 2025 on the 19th, which showed that the country's economic growth rate this year will reach 1.7%, significantly higher than expected.

The report states that international trade and government spending are the main drivers of economic growth. Against the backdrop of the United States imposing tariffs to suppress global trade, some Dutch companies have responded to tariff barriers by adjusting trade contracts and other means, achieving positive results. At the same time, the government's expenditure growth exceeded expectations, driving economic growth. In September of this year, the Dutch Ministry of Finance predicted that the fiscal deficit for 2025 would reach 25 billion euros, approximately 2.1% of the country's gross domestic product.

The report predicts that the Dutch economy will maintain a low growth rate of 1.2% and 1.1% in 2026 and 2027, respectively. Resident consumption is expected to continue providing support for economic growth. Although government spending will maintain a growth trend, the current fiscal policy is too expansionary and has limited room to cope with uncertain shocks.

In addition, the role of corporate investment in the economic growth of the Netherlands is somewhat insufficient. Olaf Sleppen, the Governor of the Dutch Central Bank, said that corporate investment faces multiple inhibitory factors, including insufficient electricity, high energy and labor costs, and unstable government policies.