Kingdom of the Netherlands—Netherlands: Staff Report for the 2014 Article IV Consultation
IMF Staff Country Reports, December 5, 2014
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- Kingdom of the Netherlands—Netherlands: Staff Report for the 2014 Article IV Consultation
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Bibliographic details
- Published: December 5, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484347607.002
Macro outlook and growth projections
- The Dutch economy "continues to improve," supported by exports, rising housing prices, and improving sentiment.
- Growth is expected to reach 0.8 percent in 2014 before rising gradually to 1.2 percent in 2015, supported by rising exports and a modest recovery in housing prices.
- Investment is projected to remain subdued owing to weak domestic demand.
External position and trade
- Exports are rising on expanding global trade.
- The external current account surplus now exceeds 10 percent of GDP, led by an improving trade balance.
Domestic demand, consumption, and housing
- Consumption remains sluggish as indebted households continue to save.
- Housing prices are rising and support the recovery, but the recovery is described as modest.
Inflation, labor market, and interest rates
- Labor slack and the large output gap have pushed down core inflation.
- Lower core inflation has raised real interest rates.