Dutch economy ended the year on a strong note

The Netherlands has been among the eurozone outperformers for some time now, and this is unlikely to have been any different in last year's fourth quarter. Eurozone GDP growth is expected to have come in at 0.2%.

Growth was driven by accelerated government spending – a key driver of Dutch economic growth in recent years – but also because of stronger growth in exports. Strong exports have persisted this year despite US tariffs and the stronger euro, thanks in part to exports within the eurozone and stronger exports to Asia.

Consumers remained cautious as household spending growth remained steady at a moderate 0.3%. While purchasing power has recovered rapidly in the aftermath of the inflation shock, consumers remain particularly downbeat in the Netherlands amid high price levels and the concerning global environment.

Bottlenecks curbing investment have persisted for some time now in the Dutch economy, and this also impacted growth negatively in 4Q. Investment growth was negative again in 4Q after a large decline in 3Q, and while the decline was more moderate, it is still rare to see investments shrink in times of relatively strong economic growth.

This afternoon, the coalition agreement for a new government will be announced and is expected to contain measures that can improve the investment environment.

Expectations for the Dutch economy in 2026 are quite upbeat when it comes to businesses across sectors, although we do expect GDP growth to moderate as government spending is expected to ease this year.