The economy won’t perform as well next year either, ING economists expect. For example, modest growth of 0.4 per cent is forecast and inflation, although past its peak, will still be high.
Economists are talking about a lean year due to the weakening global economy and continued price increases. The little growth still expected is due to extra spending by the government, ING says. According to the coalition agreement, public spending will increase by about 17 billion euros. The Rutte IV cabinet promised, among other things, to invest more money in greening, better education and housing.
What also promotes the economy is the purchasing power package. ‘In addition to the coalition deal plans, there is also the effect of the very large purchasing power package. The energy price cap is potentially the biggest part of that.’
Despite massive government support, economists do not expect consumer spending patterns to increase. Due to rising costs, they will no longer have room to make additional purchases. The real estate market also continues to suffer from challenging conditions.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
