Netherlands residents becoming less frugal with their spending, banks say

Dutch consumers are showing signs of spending more cautiously after a period of heightened frugality, according to recent research from ING and RaboResearch.

RaboResearch reported that overall “broad well-being” in the Netherlands declined slightly this year, driven largely by a 3.4 percent drop in the sense of personal safety.

Younger adults under 30 reported feeling particularly insecure, a shift attributed to global conflicts, natural disasters, and other international tensions. “This may contribute to a lower sense of safety,” said RaboResearch chief economist Otto Raspe. While most Dutch still feel relatively safe, the share of people who feel unsafe rose from 5 to 7 percent.

Other aspects of well-being, including work-life balance, health, social connections, and housing, also scored lower this year. Young adults, often still in school or early in their careers, reported lower income, housing challenges, and job insecurity, which reportedly likely affects their overall sense of well-being. On the positive side, respondents reported higher engagement in society and personal development.

Despite these concerns, Dutch households are beginning to spend more, according to ING Research. However, consumers remain cautious due to inflation expectations and global economic uncertainty, including earlier trade tensions sparked by former U.S. President Donald Trump. “This caution may lead people to save more as a precaution,” the bank noted.

ING predicts that consumer spending will gradually increase in the second half of 2025, with household consumption growing by 0.3 percent per quarter.

“While growth remains historically modest, it signals a slow return to greater consumer confidence,” the bank said. Spending is expected to rise further in 2026, contributing more substantially to the country’s economic growth.