The Dutch Rabobank warned that after impressive recovery growth rates in 2021 and 2022, the economy in the Netherlands is expected to witness slower growth in the next two years.
Due to the strong growth in the first half of the year, the economic growth figure in terms of total assets for 2022 is still expected to be 4.2 per cent, the second-largest bank in the Netherlands said in a statement.
“But for 2023 and 2024, we expect a significantly lower growth rate,” Xinhua news agency quoted Rabobank as saying
Scarcity and rising prices continue to plague the Netherlands and important trading partners, while the government wants to stimulate the economy, the statement continued.
“In our view, this situation pushes the economy into a ‘muddling through’ mode: neither strong contraction, nor strong growth. We therefore expect the Dutch economy to grow by just 0.6 per cent in 2023, followed by 1.0 per cent in 2024,” it added.
“Inflation has fallen slightly in recent months,” the Rabobank said.
“But that cannot prevent average inflation over the whole of 2022 from ending in double digits. We assume 11.6 per cent, followed by 4.2 per cent in 2023.”
In its projections of September 2022, the Netherlands’ Bureau for Economic Policy Analysis projected a 1.5 per cent GDP growth for 2023.