We forecast the Dutch economy will grow by 1.3% this year, following a 0.9% expansion in 2024. The impact of tight monetary policy is set to unwind, while strong wage growth alongside lower inflation will help drive the recovery in consumption. We expect inflation will average 2.6% in 2025, down from 3.3% in 2024, thanks to lower international energy prices and easing underlying inflationary pressures.
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