Dutch economy will grow by 3.6 percent next year: ING

The Dutch economy will grow by 3.6 percent in 2022 according to projections by ING. Increased demand for services contributed to this growth figure. This year, a growth of 4.4 percent is expected, the bank said.

ING expects the resurgence of the coronavirus and related government restrictions to inhibit an economic rebound. "This is the main risk in the growth forecasts, especially with the developments of new variants of the virus," said ING economist Marcel Klok. Additionally, there is tightness on the labor market. The Netherlands is also struggling with problems in the supply chain, along with the rest of the world.

ING is projecting the Dutch economy to grow by more than 4 percent compared to 2019 levels. Most industry sectors will then be larger than before the pandemic. This prediction does not apply to the hospitality, aviation, and travel industries, which were badly affected by the coronavirus crisis.

The real income generated by the average working household is expected to be about the same next year as it was this year. This is due to continued high inflation from rising gas, electricity, and fuel prices. ING thinks inflation will dip back below 2 percent in the second half of the year, "when the impact of energy is smaller."