Dutch economy grew 1.8% in 2025; Gov't debt tops €500 billion for first time

The Dutch economy grew by 1.8 percent in 2025, Statistics Netherlands (CBS) reported in a new estimate. Upon closer inspection, the economy grew slightly less than the 1.9 percent reported on January 30. The statistics agency also reported that the Dutch government’s expenditures and debt exceeded €500 billion for the first time last year.

Last year’s economic growth was stronger than 2024’s 1.1 percent increase in gross domestic product. The Dutch economy recorded growth in all quarters of 2025. According to the new calculation, the economy grew by 0.5 percent in the final quarter, compared to the previous quarter. That growth figure was equal to the preliminary estimate.

Compared to a year earlier, the economy grew by 1.8 percent in quarter four. That is also the same as in the first calculation. According to CBS, the trade balance - the difference between exports and imports - and consumption by the government and households contributed positively to the economic growth.

CBS also reported that the Dutch government’s expenditures and debt exceeded €500 billion for the first time last year. Government spending has been rising steadily for some time. Investments and transfers to foreign countries, in particular, increased sharply last year, partly due to purchases of military equipment.

In total, the government spent €529 billion last year, €32 billion more than the year before. Almost half of that money went to social assistance benefits and healthcare. Expenditures passed the €400 billion mark only a few years ago, during the coronavirus period.

The national debt has shown a similar trend in recent years. Last year, the debt rose to €524 billlion.

The government’s revenues also continue to rise. Last year, this amounted to €510 billion. Revenues from VAT and corporate income tax, among others, generated more money. Revenues from tobacco excise duties declined.

According to CBS, the government ultimately spent €19 billion more than it received last year. This corresponds to a government deficit of 1.6 percent of the total size of the economy. The deficit was twice as high as in 2024, but remained below the European Union’s 3 percent limit.

The increase in debt is not solely due to the government deficit, CBS said. To a large extent, it is also due to net outflows of money for financial transactions. This included €12 billion in loans from the State to the high-voltage grid operator TenneT.