THE HAGUE, Dec. 19 (Xinhua) -- Dutch economy is expected to grow by 1.7 percent this year, a rate described as "remarkably higher" than the 1.1 percent that had been forecast this spring, the Dutch central bank said on Friday.
In its released 2025 Autumn Projections, De Nederlandsche Bank (DNB) confirmed that trade growth and government spending are the main drivers of economic expansion in 2025, despite an uncertain global environment.
"Despite trade tensions, world trade has not weakened but has actually accelerated, benefiting our open economy. Government spending has also increased more than expected this year, with government employment growing faster than anticipated. " Olaf Sleijpen, president of DNB, said at the press conference in Amsterdam.
The latest figures from Statistics Netherlands (CBS) showed that in October 2025, the total volume of goods exports rose by 5.6 percent year on year.
Sleijpen noted that part of the resilience in global trade is due to companies anticipating higher tariffs by bringing forward international transactions. Trade flows are also undergoing more structural shifts.
Looking ahead, however, economic growth is expected to slow to 1.2 percent in 2026 and 1.1 percent in 2027, largely as a result of persistent global uncertainty.
"Both domestic and foreign uncertainty mainly affect businesses, whose competitive position is under pressure," Sleijpen said. "They face policy uncertainty and domestic bottlenecks such as nitrogen constraints, a congested electricity grid and a tight labor market, which dampen business investment."
Despite these challenges, Sleijpen said it is realistic to expect a newly formed cabinet to have an impact if it tackles key policy issues.
"A new cabinet should decisively address growth bottlenecks, ensure predictable policy to stimulate investment and productivity, strengthen European competitiveness, and maintain sound public finances," he said. "Government investment is essential, but it requires prioritization and sustainable funding." ■