IMF Executive Board Concludes 2025 Article IV Consultation with Kingdom of the Netherlands–the Netherlands

July 21, 2025--Domestic demand is projected to drive growth even as trade tensions affect momentum, and growth is expected to reach 1.1 and 1.2 percent in 2025 and 2026. Downside risks dominate, mainly from escalation of trade tensions and domestic policy uncertainty.
Fiscal policy should pivot from stimulating demand to expanding supply, by investing in infrastructure, education, and R&D, fostering investment to increase the housing supply, and implementing growth-enhancing tax reforms.

Reforms should aim to address growth bottlenecks from nitrogen and electricity grid congestion, increase labor input and firm productivity, expand the availability of SME financing, and effectively manage the green and demographic transitions.