THE HAGUE, Aug. 14 (Xinhua) -- The Dutch economy is projected to grow by 1.4 percent in 2026 before slowing to 1.2 percent in 2027 amid considerable international uncertainty, the Netherlands Bureau for Economic Policy Analysis (CPB) said Friday.
In its draft Macro Economic Outlook, the independent economic research institute said strong exports and increased government spending, particularly on defense, are expected to support economic growth. Financial buffers built up by households in recent years are also expected to help sustain consumption in the face of economic shocks.
However, the outlook remains subject to considerable uncertainty, with further increases in energy prices, new trade barriers or financial market turmoil potentially weighing on GDP growth, the CPB said in the report.
Inflation is projected to remain at around 3 percent in both 2026 and 2027, higher than previously expected, according to the report. As a result, real wage growth and gains in purchasing power are also expected to weaken.
Higher energy and fuel prices in particular are expected to add to inflationary pressures and push up the prices of food and other goods, the CPB said, adding that the outlook for energy and fuel prices remains highly uncertain.
The latest projection comes after Statistics Netherlands said on July 30 that the Dutch economy grew by 1.3 percent year on year in the second quarter of 2026.
