AMSTERDAM (Reuters) – Economic activity in the Netherlands is expected to grow 3.6% this year, even as soaring energy prices linked to the Russian military’s invasion of Ukraine will help push up already high inflation, the Economic Policy Analysis Bureau (CPB), which advises the government on the economy, said on Wednesday.
The fifth largest economy in the eurozone, which posted 4.8% growth last year, is expected to grow by 1.7% in 2023, the agency added.
According to the CPB, inflation in the Netherlands is expected to peak at 5.2% in 2022, before falling back to 2.4% in 2023.
The public deficit is expected to be reduced to 2.5% of gross domestic product (GDP) this year, from 4.4% in 2021, thanks to the phasing out of public aid paid to businesses to offset the economic effects of the coronavirus epidemic. coronavirus.
The public deficit in the Netherlands, which plans to increase public spending on energy transition, housing construction and education, will stand at more than 3% in the second half of the decade, the CPB added. .
(Bart Meijer report, French version Anait Miridzhanian, edited by Blandine Hénault)
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