The International Monetary Fund (IMF) has improved its forecast for the Dutch economy, but warned that high prices will continue to cause pain for consumers.
The Netherlands’ GDP is now expected to grow by 1.5% this year, up from 1% in the IMF’s last assessment in July. The trend is set to continue into 2027, when the IMF expects growth of 1.3%.
The organisation says the Dutch economy will benefit from stronger than expected growth in Germany, where it has revised its prediction from 0.7% to 1.3% for this year, as well as large global investments in AI technology.
Consumer prices will grow by 2.9% this year, reflecting the high cost of energy and fuel. The statistics agency CBS reported on Tuesday that inflation had risen to 3.4% in September, continuing an upward trend that started in July.
Fuel prices have risen by 27.2% in the last year, with a litre of diesel costing nearly €2.50 at the pumps. But prices for other commodities have fallen, such as food, which is down by 1.9%.
The IMF said the impact of the conflict in Iran on fuel prices had been tempered by countries finding alternative suppliers of oil and gas.
