We forecast the Dutch economy will grow by 1.3% this year, and 0.8% next. The impact of tight monetary policy is set to unwind, while strong wage growth alongside lower inflation will help drive the recovery in consumption. However, tariffs and trade uncertainty will constrain growth. We expect inflation will average 2.9% in 2025, and 2.1% in 2026, with tariffs hindering the disinflationary process.
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