Kingdom of the Netherlands—the Netherlands: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands—the Netherlands
IMF Staff Country Reports, November 15, 2021
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- Kingdom of the Netherlands—the Netherlands: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands—the Netherlands
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Bibliographic details
- Published: November 15, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781589068735.002
Economic performance and outlook
- The Dutch economy was more resilient than the average Euro area economy in 2020 owing in part to a high rate of digitalization of activities that allowed a large share of the work force to work remotely, while the strong policy response mitigated the impact of containment measures.
- A strong recovery is underway, with pre-pandemic GDP level to be exceeded in 2021:Q4.
- Growth forecasts:
- 4.0 percent in 2021
- 3.3 percent in 2022
- Drivers of the recovery: strong consumption and investment, supported by increasing coverage of vaccines.
Labor market
- The labor market has tightened considerably.
Risks to the outlook
- Near-term risks are roughly balanced:
- Downside: uncertain trajectory of the pandemic.
- Upside: a fuller than expected drawdown of savings accumulated in the pandemic would further support domestic demand and growth.
- Further out: real estate market developments present additional risks.
Key findings (concise)
- High digitalization and strong policy response helped the Netherlands outperform the Euro area average in 2020.
- Pre-pandemic output is projected to be regained by 2021:Q4.
- Significant near-term growth: 4.0 percent in 2021 and 3.3 percent in 2022.
- Labor market tightening and real estate risks merit attention.
IMF Staff Country Report: Kingdom of the Netherlands—the Netherlands: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands—the Netherlands
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