Dutch economy to grow by two percent: ING

Recovery of the Dutch economy is gaining strength and could lead to two percent growth in 2015, the ING bank economic bureau reports. This would be the highest level of growth since 2008, driven mainly by an increase in consumer and business spending, and a decline in the oil prices.

The government and businesses are expected to spend six percent more than a year ago. Due to increasing demand, firms are able to afford higher levels of capital investment. The volume of business investment has now returned to the pre-crisis level, ING said.

Consumer expenditures are more than one percent higher than in the previous year. Households are taking advantage of low price growth and the improving situation in the labor market. This has a positive effect on the purchasing power and consumer confidence, which is at its highest since 2007.

Growing exports also play a role in a faster recovery. This year, the Dutch exports are growing at the rate of 4.5%. Recovery in the Eurozone, improving economic situation in the United States and the UK have a positive impact on Dutch exporters. Exporters also benefit from the Euro depreciation that makes Dutch goods abroad cheaper. Simultaneously, lower oil prices reduce production costs for many industries stimulating the supply side of the economy.