The Netherlands is in the third year of a gradual recovery. Following a double-dip recession, the economy has been steadily accelerating in the context of increasing house prices and gradually improving household balance sheets, rising consumption but weak credit growth. Growth is projected to remain solid in the baseline, but it will be held back by the ongoing process of deleveraging on the part of banks, firms, and households and by lackluster medium-term prospects for the country’s major trading partners (including in relation to Brexit). In this scenario, the economy is only projected to return to potential in 2019.
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