AMSTERDAM (Reuters) – Economic growth in the Netherlands is set to slow to 0.6% next year as high inflation hits domestic spending and puts a brake on exports, the International Monetary Fund (IMF) said on Friday.
In its annual review of the euro zone’s fifth largest economy, the IMF said growth was expected to be 4.2% this year, as high savings and a strong labour market helped the country rebound quickly from its COVID-19 slump.
Headline inflation is expected to moderate to 4.2% in 2023 as the effect of surging energy prices wanes, following a jump to 11.8% this year, the IMF said.
But core inflation, which leaves out energy and food prices, is projected to peak at more than 7% next year.
(Reporting by Bart Meijer; Editing by Crispian Balmer)
