Netherlands Economic Market Dynamics, Q4 2024
Summary and analysis of The Netherlands current economic market conditions.
- Sven Bertens
- Evan Henneberry
- Maartje Smallenbroek
The Dutch economy is expected to continue its path to recovery, driven by domestic consumption. Strong wage growth is predominantly driving this change, although consumer confidence remains fragile. Furthermore, geopolitical and economic uncertainties remain, with the most recent concern being the proposed US import tariffs.
Core inflation is sticky but expected to ease gradually over the course of 2025. Inflation in the Netherlands dipped to 3.3% in January 2025, Eurozone inflation ticked up slightly for the fourth consecutive quarter, reaching 2.5%.
The ECB cut rates again by 25 bps in January, with the deposit rate now standing at 2.75%. Further cuts are expected to boost the Eurozone economy, which has remained stagnant over 2024.
