Netherlands Economic Outlook
July 24, 2018The momentum seen in the first quarter is expected to have largely carried over into the second quarter. Throughout Q2, consumer confidence remained at high levels, while the unemployment rate remained at a near-decade low in June. This should have translated into healthy household consumption, which is likely to have received a further boost from a wealth effect generated by robust growth in home prices. In addition, the manufacturing PMI remained well in expansionary territory in June, despite easing on softer employment growth. On the flipside, low unemployment is likely creating capacity constraints. This comes after growth in the first quarter was driven by robust consumer spending underpinned by a tight labor market and moderate inflationary pressures; however, the external sector performed poorly, with exports contracting quarter-on-quarter. In July, consumer confidence remained elevated, suggesting that private consumption will continue to spearhead the economy in the third quarter.
Netherlands Economic GrowthRobust domestic demand should keep economic momentum afloat this year. Rising wages and low unemployment are seen supporting private consumption, while favorable business conditions are expected to buttress fixed investment. However, moderating economic growth in the EU and the escalation of trade tensions between the EU and the U.S. are likely to drag on export growth going forward. Moreover, uncertainty surrounding Brexit and the effects of Italy’s new government on the wider EU economy further cloud the outlook. Met the why particular Consensus Forecasts panelists pencil in 2.6% growth for 2018, which is down 0.1 percentage points from last month’s forecast. Next year, the panel expects the economy to expand 2.1%.
Netherlands Economy Data
5 years of Netherlands economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.44||5.70 %||Aug 14|
|Exchange Rate||1.13||0.65 %||Aug 15|
|Stock Market||553||-0.57 %||Aug 15|
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Netherlands Economic News
Netherlands: Economic growth picks up pace in Q2 on the back of fixed investment growth and the external sector
August 14, 2018
The Dutch economy picked up pace in the second quarter according to the first estimate of Statistics Netherlands released on 14 August, with calendar-adjusted quarter-on-quarter growth coming in at 0.7% (Q1: +0.6% quarter-on-quarter).
August 1, 2018
The NEVI manufacturing Purchasing Mangers’ Index (PMI), co-produced with IHS Markit, eased from 60.1 in June to 58.0 in July.
July 30, 2018
Sentiment in the manufacturing industry dropped for the second consecutive month at the outset of the third quarter.
July 20, 2018
Sentiment among Dutch consumers—which has been in positive territory since March 2015—remained elevated at the outset of the third quarter, matching June’s print at 23.
July 2, 2018
Momentum in the Dutch manufacturing sector continued to ebb in June on the back of softer jobs growth.