Netherlands Business Forecast Report - Business Monitor International - Industry Reports

Netherlands Business Forecast Report

Netherlands Business Forecast Report - Business Monitor International - Industry Reports
Netherlands Business Forecast Report
Published Dec 12, 2014
32 pages — Published Dec 12, 2014
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Source: BMI of eurozone sovereign debt, further supporting the Netherlands fiscal position. not about to Loosen the purse strings Although the government has succeeded in achieving a more sustainable fiscal path over the past few years, we do not expect the coalition to loosen fiscal policy over ---- and ----. ...This, combined with other measures such as requiring unemployment benefit claimants to accept any job offers after six months instead of --, has resulted in a marked increase in labour force participation. While this is painful in the short term, as the growth in the labour force is not matched with an equivalent rise in employment (see chart), these measures will prove positive for the longer-term productive capacity of the Dutch economy as employment growth catches up, in our view. Looking ahead to ---- provincial elections We expect the March ---- provincial elections to markedly change the composition of the constructive opposition parties in the lower house (the Senate) upon which the governing coali- tion rely to pass legislation. ...That said, we expect the recovery of Dutch public finances and a moderately improving growth outlook to allow other issues, such as income tax reform and growing euro-scepticism, to move further up the political agenda over the coming quarters. - Business Monitor International Ltd www political outlook structural reforms Bearing Fruit

...The Netherlands relatively successful implementation of structural economic reforms, combined with a brightening growth outlook, will en- sure that the country s fiscal dynamics remain among the healthiest in the eurozone over the coming years. The Dutch coalition government s ability to push through a front-loaded austerity programme and relatively far-reaching structural reform agenda means that we see little threat to the country s fiscal sustainability over the coming years. ...The country was released from the EU s Excessive Deficit Procedure (EDP) � which punishes countries deemed to be too fiscally profligate � in ----. Given the government s commitment to fiscal prudence, and a moderately brightening economic outlook, we believe the country s budget deficit will shrink over the next two years from -.- of GDP in ---- to -.- and -.- in ---- and ---- respectively; a considerable distance from the -.- limit of the EDP. In addition to bringing the deficit down, the government has stabilised a previously increasing debt to GDP ratio at around -- of GDP. ...As with almost all euro area countries, Dutch fiscal accounts have benefitted from falling bond yields, which have helped to reduce interest expenditure on outstanding government debt since Mario Draghi s now infamous whatever it takes speech in ---- (see chart). We believe that eurozone bond yields will remain low over the coming quarters, and could potentially head lower if the ECB expands its monetary easing to include the purchasing - Business Monitor International Ltd www NETHERLANDS Q- ----

...Because of its openness, the economy is also highly vulnerable to external factors over which it has little control, such as the euro exchange rate, the price of oil and the strength or weakness of key eu trading partners such as Germany and france. large unfunded pension liabilities and the prospect of an ageing population are a drain on public sector finances, although this is beginning to be addressed. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Netherlands Business Forecast Report" Dec 12, 2014. Alacra Store. Oct 26, 2016. <>
Business Monitor International - Industry Reports. (2014). Netherlands Business Forecast Report Dec 12, 2014. New York, NY: Alacra Store. Retrieved Oct 26, 2016 from <>
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