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Continuing growth, increasing political risk

The positive economic development in the Netherlands is continuing. The slight setback during the first quarter is expected to be only temporary, although the period of peak economic growth is probably behind us. The Dutch economy is benefiting from the excellent growth in world trade and domestic dynamics, but political risks have increased on an international level. Political developments in Italy and around the Brexit have their immediate effect on the Dutch economy, as does the developing conflict with the United States over international trade. The trade restrictions implemented to date will lead to sectoral adjustments, although the impact on global growth levels is only negligible. However, escalation could have far-reaching consequences and may lead to substantial long-term GDP losses.

19 June 2018