Economic growth in the Netherlands will fall to 1.5 percent in 2019 and 2020, CPB said on Tuesday. This will be the country’s lowest economic growth since 2014 and contradicts the predictions of the government’s primary financial advisor who said the economy will grow 2.2 percent in 2019.
“Years of high growth have come to an end, the Dutch economy is reverting to an average rate of growth,” the CPB said. The organisation said Brexit, U.S. trade policy and the Chinese economy act as reasons for the slowdown.
In recent year, the Netherlands has beat its fellow European countries in economic growth. The Dutch economy has decreased unemployment to its lowest level in a decade. But this growth will most likely slow substantially this year, the CPB said. This is due to a fall in International trade, which hits the growth of consumption and investments. Additionally, the inflation rate will rise to 2.3 percent this year due to rising wages and tax hikes.