{
  "title": "IMF Executive Board Concludes 2021 Article IV Consultation the Netherlands",
  "publication": "IMF News, November 15, 2021",
  "sourceUrl": "https://www.imf.org/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation",
  "canonical": "https://www.imf.org/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation",
  "overlayPath": "/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation/index.md",
  "summary": "Real GDP contracted by 3.8 percent in 2020.",
  "publishDate": "2021-11-15",
  "sections": [
    {
      "heading": "Economic outlook and recovery",
      "content": "- Real GDP contracted by 3.8 percent in 2020.\n- The economy is forecast to grow by 4 percent in 2021 and 3.3 percent in 2022.\n- Real GDP was expected to surpass its pre-pandemic level by end-2021.\n- Recovery drivers:\n  - High rate of digitalization enabling remote work.\n  - Strong economic policy response since the start of the pandemic.\n  - High coverage of vaccines supporting reopening.\n- Labor market:\n  - Programs preserved jobs and incomes and supported businesses, containing unemployment increases and keeping bankruptcies at historically low levels.\n  - The labor market has tightened again, with the unemployment rate back near its pre-pandemic readings.\n- Policy adjustments:\n  - Authorities lifted most sanitary restrictions and introduced a “corona pass.”\n  - Main broad policy support programs were phased out as of October 1, while targeted support schemes remain for businesses still facing restrictions.\n- Medium-term projection: the economy is projected to catch up to its pre-pandemic trend."
    },
    {
      "heading": "Fiscal position and external balances",
      "content": "- The pandemic response resulted in a large fiscal deficit in 2020 and 2021 after several years of surpluses.\n- Public debt:\n  - Public debt to GDP ratio expected to remain below 60 percent at end 2021.\n  - Public debt ratio projected to fall below 50 percent by 2026.\n- Fiscal trajectory:\n  - Fiscal deficits are projected to gradually vanish in the next several years.\n- Current account:\n  - Current account surplus narrowed to 7.0 percent of GDP in 2020 from 9.4 percent of GDP in 2019.\n  - The surplus is expected to rise somewhat in 2021 and over the medium term."
    },
    {
      "heading": "Financial sector and housing market",
      "content": "- Banks retained strong pre-pandemic capital positions and non-performing loans have remained low.\n- Residential real estate valuations have continued increasing, reflecting high demand and rigidities in housing supply.\n- Directors noted imbalances in the real estate market warrant heightened vigilance.\n- Macroprudential stance:\n  - Directors encouraged continued strong supervision to prevent undue risk-taking in the low interest rate environment, including appropriate use of macroprudential tools.\n  - Directors welcomed the activation of risk-based floors for residential mortgage lending.\n- Recommended supply-side measures to address housing supply shortages."
    },
    {
      "heading": "Executive Board Assessment and policy recommendations",
      "content": "- Directors commended vigorous policy response to the pandemic for limiting health, economic, and financial impacts.\n- Directors welcomed transition to more targeted policy support and authorities’ readiness to react if substantial downside risks materialize.\n- Priorities to guide normalization and reallocation of factors of production:\n  - Improve debt restructuring processes for viable firms.\n  - Establish a credit bureau.\n- Use of fiscal space:\n  - Directors broadly supported using available fiscal space to foster a more productive, greener, and more inclusive economy and to contribute to external rebalancing.\n  - Welcomed the introduction of the National Education Plan and the National Growth Fund.\n  - Encouraged additional investments in education and public funding for research and development.\n- Taxation and labor:\n  - Ongoing reform of international and capital taxation should help fight tax avoidance globally.\n  - Recommended further efforts to address labor market duality and implement the agreed pension reform to boost productivity and enhance intergenerational equity.\n- Climate policy:\n  - Directors commended ambitious targets for reducing greenhouse gas emissions.\n  - Recommended considering additional measures to complement existing policies, including instruments to reinforce carbon pricing.\n  - Underscored the need to safeguard vulnerable households from the costs of the transition."
    },
    {
      "heading": "Selected economic indicators, 2019–2022 (as reported)",
      "content": "- National accounts (percent change)\n  - Gross domestic product: 2.0 (2019); -3.8 (2020); 4.0 (2021); 3.3 (2022 Proj.)\n  - Private consumption: 0.9 (2019); -6.6 (2020); 4.3 (2021); 4.1 (2022 Proj.)\n  - Public consumption: 2.8 (2019); 1.0 (2020); 2.1 (2021)\n  - Gross fixed investment: 6.2 (2019); -4.1 (2020)\n  - Total domestic demand: 3.0 (2019); -4.3 (2020); 3.4 (2021)\n  - Exports of goods and nonfactor services: -4.8 (2019); 5.2 (2020)\n  - Imports of goods and nonfactor services: -5.4 (2019); 4.6 (2020); 4.5 (2022 Proj.)\n  - Net foreign balance¹: -0.8 (2019); 0.0 (2020); 0.3 (2021)\n  - Output gap (percent of potential output): 0.6 (2019); -1.8 (2020); -1.5 (2021)\n- Prices, wages, and employment\n  - Consumer price index (HICP): 2.7 (2019); 1.1 (2020); 1.9 (2021); 1.7 (2022 Proj.)\n  - GDP deflator: 2.3 (2019); 1.6 (2020)\n  - Hourly compensation (manufacturing): 2.4 (2019); 6.6 (2020)\n  - Unit labor costs (manufacturing): 0.4 (2019)\n- Employment\n  - Unemployment rate (ILO definition): 3.8 (2019)\n  - NAIRU: (value not provided)\n- External trade\n  - Merchandise balance (percent of GDP): 7.4 (2019); 8.1 (2020); 8.2 (2021); 7.9 (2022 Proj.)\n  - Current account balance (percent of GDP): 9.4 (2019); 7.0 (2020); 8.0 (2021); 8.7 (2022 Proj.)\n- General government accounts (percent of GDP)\n  - Revenue: 43.6 (2019); 41.1 (2020); 42.0 (2021); 42.4 (2022 Proj.)\n  - Expenditure: 45.4 (2019); 48.2 (2020); 44.8 (2021)\n  - Net lending/borrowing: 2.5 (2019); -6.1 (2020); -2.3 (2021)\n  - Primary balance: 3.2 (2019); -3.9 (2020); -5.8 (2021); -2.1 (2022 Proj.)\n  - Structural balance²: 1.8 (2019); -3.2 (2020); -5.2 (2021); -1.9 (2022 Proj.)\n  - Structural primary balance²: -2.6 (2019); -1.4 (2020)\n  - General government gross debt: 47.4 (2019); 52.5 (2020); 57.9 (2021); 56.4 (2022 Proj.)\n- Sources cited in the tabulation: Dutch official publications, IMF, IFS, and IMF staff calculations.\n- Notes:\n  - ¹ Contribution to GDP growth.\n  - ² In percent of potential GDP.\n\nIMF Communications Department press release, November 15, 2021 — Executive Board concluding summary of the 2021 Article IV consultation with the Netherlands.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Kingdom of the Netherlands-The Netherlands and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- http://www.IMF.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation/index.md)",
    "[Structured JSON version](/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation/index.json)",
    "[Bundle manifest](/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation/bundle-manifest.json)",
    "Published: November 15, 2021",
    "Real GDP contracted by 3.8 percent in 2020.",
    "The economy is forecast to grow by 4 percent in 2021 and 3.3 percent in 2022.",
    "Real GDP was expected to surpass its pre-pandemic level by end-2021.",
    "Recovery drivers:",
    "Labor market:",
    "Policy adjustments:",
    "Medium-term projection: the economy is projected to catch up to its pre-pandemic trend.",
    "The pandemic response resulted in a large fiscal deficit in 2020 and 2021 after several years of surpluses.",
    "Public debt:",
    "Fiscal trajectory:",
    "Current account:",
    "Banks retained strong pre-pandemic capital positions and non-performing loans have remained low.",
    "Residential real estate valuations have continued increasing, reflecting high demand and rigidities in housing supply.",
    "Directors noted imbalances in the real estate market warrant heightened vigilance.",
    "Macroprudential stance:",
    "Recommended supply-side measures to address housing supply shortages.",
    "Directors commended vigorous policy response to the pandemic for limiting health, economic, and financial impacts.",
    "Directors welcomed transition to more targeted policy support and authorities’ readiness to react if substantial downside risks materialize.",
    "Priorities to guide normalization and reallocation of factors of production:",
    "Use of fiscal space:",
    "Taxation and labor:",
    "Climate policy:",
    "National accounts (percent change)",
    "Prices, wages, and employment",
    "Employment",
    "External trade",
    "General government accounts (percent of GDP)",
    "Sources cited in the tabulation: Dutch official publications, IMF, IFS, and IMF staff calculations.",
    "Notes:",
    "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)",
    "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)",
    "[Kingdom of the Netherlands-The Netherlands and the IMF](http://www.imf.org/external/country/NLD/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation/index.md",
    "json": "/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation/index.json",
    "bundleManifest": "/en/news/articles/2021/11/15/pr21332-the-netherlands-imf-executive-board-concludes-2021-article-iv-consultation/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T00:46:04.352Z"
}