AMSTERDAM, March 9 (Reuters) – Economic growth in the Netherlands is set to fall to its slowest pace since 2020 this year and next, as inflation remains high and rising interest rates end a decade-long property boom, Dutch government policy adviser CPB said on Thursday.
The euro zone’s fifth largest economy is expected to grow 1.6% in 2023 and 1.4% in 2024, the CPB said, down from almost 5% in the last two years.
Inflation will remain relatively high at around 3% this year and next, the CPB said, as surging food and energy prices feed through into those of other goods and services.
Economic growth will also be held back by falling house prices, denting consumer confidence and lowering spending.
Lavish support measures to shield consumers from rising energy prices, such as a price cap on electricity and gas, will expand the government deficit to 3% of gross domestic product (GDP) this year and 2.6% in 2024, the CPB said.
