The Kingdom of the Netherlands—Netherlands: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for The Kingdom of the Netherlands—Netherlands

IMF Staff Country Reports, February 12, 2019

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The Kingdom of the Netherlands—Netherlands: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for The Kingdom of the Netherlands—Netherlands

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Bibliographic details

• Published: February 12, 2019
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781484398517.002

Overview

• Publication date: February 12, 2019.
• Core message: Dutch economy has grown faster than the euro area average over the past few years, driven by recovering consumption and investment, and strong net exports.
• Structural concern: Progress with tackling long-standing imbalances in the household and corporate sectors, and thus external imbalances, has lagged.

Key findings

• Growth drivers:
  • Recovering consumption.
  • Recovering investment.
  • Strong net exports.
• Household sector:
  • Households remain highly leveraged.
  • Household consumption is constrained by a stagnating disposable income.
• Corporate sector:
  • Dominated by large multinational corporations.
  • Investment is low but savings are high.
  • Divergent developments: domestic small and medium enterprises relatively stagnant.
• Fiscal position:
  • Strong fiscal performance in recent years has boosted buffers.
  • These buffers can now be used to reduce distortions and strengthen potential growth.

Policy recommendations

• Labor market:
  • Harmonize tax benefits and social security contributions for different types of employment to reduce labor market duality.
  • Increase overall labor market flexibility.
• Fiscal policy:
  • Use fiscal space to address household and corporate imbalances.
  • This use of fiscal space is desirable and is unlikely to jeopardize long-term fiscal sustainability.

Subjects and keywords (as listed)

• Subject: Disposable income, Labor, Labor markets, Labor taxes, National accounts, Self-employment, Taxes, Wages.
• Keywords: CR, Disposable income, fiscal policy, Global, government policy, household mortgage debt, IMF staff calculation, ISCR, labor market, labor market tightness, Labor markets, Labor taxes, liability positions vis-a-vis nonresident, Self-employment, staff, staffs analysis, Wages.

Content in this bundle

• 1. The 2019 Budget
  • 1. The 2019 Budget (Markdown version)
  • 1. The 2019 Budget (PDF)