The Dutch economy is expected to show a moderate growth of 1.8% per year for the next five years, amid a gradual but unstable global economic recovery, according Dutch bureau for economic policy analysis Centraal Planbureau (CPB).
According to the CPB, GDP growth is predominantly driven by productivity growth rather than an improvement of employment levels or domestic demand, with average household consumption expected to grow by 1% per year, lagging behind relatively stronger average growth levels between 2014 and 2017.
Throughout the next five years, the CPB expects the average purchasing power of Dutch residents to remain stagnant, with those in employment benefiting from a minor increase of purchasing power to 0.3% while retired and unemployed people are set to experience a 0.2% decline of their purchasing power.
The CPB predicts that unemployment will decline to 5.5% until 221, with the budget surplus remaining stable at 0.6% of GDP.
At the same time, the report also cautions that the international outlook, including the future of the EU, the persistence of terrorist threats, monetary policy in Europe and the US and the growth outlook for China and other emerging markets continue to represent factors that could significantly deteriorate the present growth outlook for the Netherlands.