Dutch economy to recover from 2024, says rating agency

The rating agency S&P Global expects the Dutch economy to recover from next year thanks to stronger domestic demand. According to the leading rating agency, the economy will be boosted by the tight situation in the labor market and the recovery in household purchasing power.

As inflation eases, consumers will once again have more money to spend. S&P Global has calculated that economic growth will average 1.4 percent between 2024 and 2026. This year is expected to be up 0.5 percent. "Tight financial conditions and weaker external demand will dampen economic activity this year," it said in a report.

Still, the U.S. firm's experts are optimistic about our country. "The Netherlands is the fifth largest economy in the European Union, has the largest seaport and a wide range of trading partners. It's a rich, open, diversified, and competitive economy."

S&P Global expects a coalition government to be formed after the November elections, which could continue to complicate policymaking. "A fragmented political landscape will complicate policymaking in the short term," the rating agency said.

The rating agency maintains the Netherlands' "AAA/A-1+" status, one of the highest possible credit rating categories.