Dutch economy set to grow by 1.5% in 2026 as IMF raises forecast

The International Monetary Fund (IMF) has raised its forecast for the Dutch economy in 2026, predicting a growth rate of 1.5%. This is an increase from the previous estimate of 1% in July. The growth is expected to continue into 2027, with an anticipated 1.3% growth rate. The improvement in the Dutch economy is attributed to stronger growth in Germany and large global investments in AI technology.

However, the Dutch economy will face challenges due to high consumer prices. Inflation is projected to rise by 2.9% this year, driven by the high cost of energy and fuel. Inflation reached 3.4% in September, continuing a trend that began in July. Fuel prices have surged by 27.2% over the past year, with a litre of diesel now costing nearly €2.50.

Despite this, prices for other commodities, such as food, have fallen by 1.9%. The IMF attributes the impact of the Iran conflict on fuel prices to countries finding alternative oil and gas suppliers.