Netherlands: Above-potential growth
The economic expansion remained strong in 2007 and is expected to reach 3% for the second year in a row. Over the projection period above-potential growth is projected to continue, reflecting both robust domestic demand and dynamic export markets. However, labour shortages are likely to persist, partly reflecting population ageing, which will increasingly hamper the expansion of the economy. Indeed, inflation pressures are expected to increase gradually.
To facilitate stronger sustainable growth, policies aimed at raising labour utilisation should be intensified. Moreover, given the unusual uncertainty in short-term economic prospects, the government should be ready to allow the full functioning of the automatic stabilisers.
No. 264/265, December 2007-January 2008
• OECD Economic Outlook No. 82, December 2007
• Visit www.oecd.org/netherlands
• All OECD Observer articles on the Netherlands