Kingdom of the Netherlands–The Netherlands: 2024 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, April 8, 2024
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- Kingdom of the Netherlands–The Netherlands: 2024 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: April 8, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400271724.002
Economic outlook and growth
- After two years of strong recovery, growth decelerated in 2023, reflecting the energy shock, tighter financial conditions, and a slowdown in key trading partners, particularly Germany.
- Growth is expected to gradually regain momentum in 2024, driven by higher private consumption and external demand.
- High interest rates will weigh on business and residential investment.
Inflation, labor market, and prices
- Core inflation remains elevated, reflecting a tight labor market, robust wage growth, and healthy profit margins.
- Given the high cost of underestimating inflation persistence, a non-expansionary stance is warranted for 2024; adjustment measures should be identified.
Fiscal stance and medium-term challenges
- Medium-term fiscal challenges call for structural reforms to stabilize debt.
- For 2024 the recommended fiscal approach is non-expansionary to guard against persistent inflationary pressures.
Climate mitigation and energy pricing
- Climate mitigation strategies need to tackle implicit fuel subsidies.
- Policy design should strike the right balance among regulation, pricing/feebates, and subsidies, while addressing distributional concerns and ensuring policy predictability.
Content in this bundle
- 1. Economic Growth