Kingdom of the Netherlands–the Netherlands: 2022 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, March 9, 2023
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- Kingdom of the Netherlands–the Netherlands: 2022 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: March 9, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400234378.002
Overview
- Russia’s invasion of Ukraine is posing new challenges for the Netherlands; the country has suffered a smaller decline in the terms of trade compared to the rest of the euro area.
- Growth is projected to slow to 0.6 percent in 2023 from 4.2 percent in 2022.
- Headline inflation is expected to moderate in 2023 with the activation of the energy price ceiling.
- Core inflation is projected to peak in 2023 at about 7.3 percent.
- The fiscal deficit is projected to increase to 2.8 percent of gross domestic product (GDP) in 2023.
- The public debt to GDP ratio is expected to remain below 50 percent over the medium term.
Growth and demand projections
- GDP growth:
- 4.2 percent in 2022.
- 0.6 percent projected in 2023.
- Drivers of the slowdown in 2023:
- High inflation weighing on consumption.
- Waning external demand.
- Tightening financial conditions.
- Medium-term support:
- Public investment and reforms are expected to underpin growth over the medium term.
Inflation dynamics
- Headline inflation:
- Expected to moderate in 2023 with the activation of the energy price ceiling.
- Core inflation:
- Projected to peak in 2023 at about 7.3 percent.
Fiscal outlook and public debt
- Fiscal balance:
- Fiscal deficit projected to increase to 2.8 percent of GDP in 2023, mainly reflecting government measures to cushion the impact of high-energy prices and the economic slowdown.
- Public debt:
- Dutch fiscal position remains strong.
- Public debt to GDP ratio expected to remain below 50 percent over the medium term.
Subjects and keywords highlighted in the report
- Subject: Fiscal policy, International organization, Labor, Monetary policy, Prices
- Keywords: energy inflation, Energy prices, Europe, Fiscal stance, Global, government Finance statistics yearbook, Housing prices, housing supply policy, Inflation, Labor markets, potential GDP, price signal
Kingdom of the Netherlands–the Netherlands: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands–the Netherlands (March 9, 2023).
Content in this bundle
- Kingdom of the Netherlands—the Netherlands