Dutch economy in good shape: Retains top credit rating from Moody’s
The Netherlands has once again received the highest rating from the Moody's rating agency. Despite the European energy crisis and increased inflation, the Dutch economy is in good shape, the rating agency said. Moody's analysts are not very concerned about the government's additional spending on energy supplies, such as the price cap on gas and electricity.
Moody's points to the still-robust economic growth in the Netherlands in the first half of 2022, with GDP growth slowing but not contracting this year, the rating agency said. It helps that the Netherlands is not as dependent on energy-guzzling sectors as other countries. High household debt, however, mainly due to mortgages, remains a concern but is less of a risk than in the past.
The government's price cap and other offsetting measures are leading to a budget deficit of 4 percent, according to Moody's. However, analysts expect this support to be replaced by more targeted measures next year. This will also lead to lower government spending.
The Netherlands' credit rating is therefore again rated AAA with a stable outlook. This means that Dutch government bonds are among the safest investments in Moody's eyes. This also helps the Dutch government to borrow money at favorable interest rates.
Reporting by ANP