Kingdom of the Netherlands—The Netherlands: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands—The Netherland
IMF Staff Country Reports, July 21, 2025
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- Kingdom of the Netherlands—The Netherlands: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands—The Netherland
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Bibliographic details
- Published: July 21, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229017039.002
Macroeconomic outlook and drivers
- Dutch economy described as "one of the most developed globally" with significant strength from integration into global value chains.
- Domestic demand is expected to drive growth, supported by strong household purchasing power.
- Trade tensions and domestic policy uncertainty are testing resilience and are likely to dampen external demand, investment, and confidence.
- Increased market volatility due to trade tensions and uncertainty poses significant liquidity risks to non-bank financial institutions.
Key vulnerabilities and bottlenecks
- Growth bottlenecks identified: nitrogen congestion and electricity grid congestion.
- Financial oversight needs adaptation to the evolving global environment and financial landscape.
- Additional bottlenecks and constraints noted for reform: limited labor input, firm productivity shortfalls, and constrained financing for small and medium enterprises.
- Challenges associated with the green transition and the demographic transition require effective management.
Policy recommendations — fiscal and structural
- Fiscal policy should shift from stimulating demand to expanding supply.
- Priorities for public investment:
- Infrastructure
- Education
- Research and development
- Housing sector recommendations:
- Foster investment to increase housing supply.
- Tax policy:
- Implement growth-enhancing tax reforms.
- Financial sector policy:
- Strengthen oversight of non-bank financial institutions to address liquidity risks amid increased market volatility.
- Structural reforms:
- Target nitrogen and electricity grid congestion.
- Increase labor input and firm productivity.
- Expand financing for small and medium enterprises.
- Effectively manage green and demographic transitions.
Publication and metadata
- Publication date: July 21, 2025
- Pages: 82
- Volume: 2025
- Issue: 197
- Series: Country Report No. 2025/197
- DOI: https://doi.org/10.5089/9798229017039.002
- Stock No: 1NLDEA2025001
- ISBN: 9798229017039
- ISSN: 1934-7685
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IMF Staff Country Report: Kingdom of the Netherlands—The Netherlands: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands—The Netherland (July 21, 2025).
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