The Dutch economy is strong and resilient, but not everyone in the Netherlands experiences it that way. Many people are struggling financially or have concerns about their future. The Netherlands should therefore strive for a highly developed and finely tuned economy that works better for everyone. DNB President Klaas Knot advocated this on Thursday at the presentation of De Nederlandsche Bank’s annual report.
© DNB
From a macroeconomic perspective, the Dutch economy is doing “quite well”, Knot says in the annual report. Despite continued sluggish economic growth, the economy is still running above capacity and we have not entered a deep recession despite the pandemic and high inflation. Inflation is receding and unemployment remains exceptionally low.
“However, our economy also faces significant, structural challenges: in the labour market and in the housing market, and when it comes to dealing with our limited physical space and ensuring our living environment remains healthy. And despite our great collective prosperity, also by international standards, many households are struggling,” according to Knot.
Despite the fact that the Netherlands is doing quite well, there are underlying inequalities that seem to be fuelling discontent in society. This is especially evident in the housing market and the labour market, where problems need to be addressed. At the same time, a new government needs to nurture business as a key driver of the Dutch economy. The business climate in the Netherlands is still good, and it is vital to keep it that way.
In the introduction to the press conference on our annual report on 14 March, Klaas Knot and his fellow Executive Board members spoke about the challenges facing our economy. They also talked about Europe, the digital transformation in the financial sector and DNB’s resolution task. Read the introduction to the press conference here.
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