Dutch economy more resilient to U.S. import tariffs, inflation than expected: ABN Amro

The Dutch economy will be in a “stronger” position at the end of 2025 than expected, despite U.S. import tariffs, excessive inflation, and uncertainty, ABN Amro reported. The bank has raised its growth forecasts for the Dutch economy for this year and next.

ABN Amro expects the Dutch economy to grow by 1.7 percent in 2025. The bank previously expected growth of 1.5 percent. Growth in 2026 is expected to reach 1.2 percent, up from 1.1 percent previously. ABN Amro anticipates economic growth of 1.4 percent in 2027.

Uncertainty is decreasing, international trade agreements are providing more clarity, and a new government can reduce policy uncertainty, according to ABN Amro economists.

Interest rate cuts are also boosting lending, and Dutch consumers are spending more thanks to rising purchasing power. The economists also expect the Netherlands to benefit from government investments in Germany.

According to the bank, inflation in the Netherlands will gradually decline, but will remain above 2 percent in the coming years. The bank attributes this to staff shortages, wage increases, and policy.