S&P Global, a renowned rating agency, anticipates a resurgence in the Dutch economy beginning next year, driven by robust domestic demand. The leading rating agency cites a tight labor

market and the recovery of household purchasing power as key factors bolstering economic growth.

As inflation subsides, consumers are expected to enjoy increased disposable income, reinvigorating economic activity. S&P Global's analysis forecasts an average economic growth rate of 1.4 percent from 2024 to 2026, with the current year expected to see a modest growth of 0.5 percent. In a recent report, the agency noted that "stringent financial conditions and weakened external demand are likely to temper economic performance this year."

Despite these short-term challenges, S&P Global's experts maintain a positive outlook on the Netherlands. They highlight the country's prominent status as the fifth-largest economy in the European Union, boasting the largest seaport and a diverse network of trading partners. The Netherlands is recognized for its affluent, open, diversified, and competitive economic landscape.

S&P Global also anticipates the formation of a coalition government following the November elections, which may pose challenges for policymaking. The rating agency points out that "a fragmented political landscape will introduce complexities into short-term policy decisions."

In terms of creditworthiness, the rating agency reaffirms the Netherlands' status as a "AAA/A-1+" nation, signifying one of the highest credit rating categories achievable. Photo by Mtcv, Wikimedia commons.