“The economy will recover in 2024 and purchasing power will increase.”

This is what leading rating agency S&P Global wrote. The organization is one of the three major credit rating agencies in the world, which rates the creditworthiness of countries and companies.

The Netherlands maintains its AAA/A-1+ status, one of the highest possible creditworthiness categories.

More to spend

Consumers will have more to spend again as inflation declines, according to S&P Global. It is assumed that purchasing power will increase by 1.8 percent next year.

The agency also expects economic growth to average 1.4 percent between 2024 and 2026. For the current year, this is expected to be plus 0.5 percent. Growth was previously expected to reach 0.9 percent.

“Difficult financial conditions and weak external demand will continue to dampen economic activity this year,” the report said.

positive

However, experts look favorably on our country. “The Netherlands is the fifth largest economy in the European Union, has the largest seaport and a wide range of trading partners. It is a rich, open, diverse and competitive economy.”

The Netherlands was one of the most resilient economies in Western Europe during the coronavirus pandemic, and that remained the case after the Russian invasion of Ukraine, according to S&P Global.

It expects to form a coalition government after the November elections, which may continue to complicate the policy-making process. “A fragmented political landscape will hamper policymaking in the short term.”

Low inflation and unemployment rates

Standard & Poor’s Global believes inflation will fall from 4.9 percent in 2023 to 2 percent in 2026.

Unemployment will be among the lowest in the euro area at 3.7 percent in the years 2023-2026.