The Netherlands’ economic performance has been good, with the EPI score projected to be close to 91.7%, or a B level, in 2016. Economic conditions have improved steadily over the two years, with domestic demand strengthening and exports improving.
Cheaper oil and a weaker euro have contributed to the improvement as well. Unemployment levels remain elevated, which is typical for European economies. The 5-Minute Economist projects the Netherlands’ EPI score to improve only gradually to about 93% by 2020, but still stay at the B level.
The general government deficit was 2.1% of GDP in 2015 and is projected to be 1.8% in 2016. The government’s fiscal consolidation plans are aimed at keeping the deficit within 3% of GDP, in line with the EU’s demands. Inflation is projected to be 1.3% in 2016, in line with low inflationary environment in the Eurozone overall.