Dutch growth driven by domestic consumption
Dutch GDP growth is set to pick up, from 1.8% this year to 2.1% in 2017, largely driven by an improvement of domestic consumption, according to the latest forecast of the Dutch statistics office CPB.
According to the CPB, the boost in consumption is driven by persistently low inflation combined with rising wages. Meanwhile, unemployment is set to decline gradually, from 6.9% in 2015 to 6.2% in 2017.
Consequently, the average purchasing power of Dutch households is set to increase by 2.6% this year before declining to 0.2% in 2017.
The CPB highlights that inflation remains at 0.1% for 2016 but anticipates a gradual rise to 0.9% in 2017, mainly due to rising oil prices.
The possible risk of a Brexit, the weak financial position of Southern European countries, a further slowdown of world trade and the risks of a changing monetary policy in the US are considered to be key risks to global economy in 2016.