Economy

ABN AMRO has cut its growth outlook for the Dutch do‑it‑yourself sector to 2 percent in 2026, down from 3 percent, as the Iran war, higher inflation, and weaker consumer confidence weigh on home‑improvement spending. More homeowners are taking on small repairs themselves, while rising costs and online competition squeeze margins at DIY chains like Hornbach, Gamma, Karwei, and Praxis.

Owner‑occupied homes in the Netherlands were 5 percent more expensive in March than a year earlier, marking a further easing of price growth. Average prices now exceed €494,600, while sales volumes rose sharply compared to last year.

Geldmaat is testing the introduction of 100‑euro banknotes in 46 ATMs across major Dutch cities. The six‑month trial, launched with De Nederlandsche Bank, aims to assess demand for higher denominations amid rising inflation.

Employers warn they may not raise travel allowances even if the cabinet increases the tax‑free mileage rate. AWVN says higher reimbursements could reduce wage margins and advises companies to assess who truly needs the increase. Business travel is more likely to receive higher compensation than daily commuting.

BOVAG chair Christianne van der Wal says targeted energy support would be more effective than cutting fuel taxes. She argues that broad tax reductions are costly and limited in impact, while focused measures could better support households and businesses facing rising costs.

Oil prices plunged by approximately 11% on Friday following the announcement that the Strait of Hormuz has reopened to commercial shipping. The strategic waterway, which carries 20% of the world's oil, had been largely closed by Iran during recent hostilities, causing significant market volatility. This de-escalation led US crude to fall to $83.30 and Brent crude to $87.90 a barrel, while European gas prices also dropped by nearly 8% as fears of a prolonged energy supply crisis began to fade.

From January 2027, young workers aged 16 to 20 will benefit from a significant increase in the youth minimum wage as the government implements a long-standing plan to boost pay for younger age groups. Under the new rules, the percentage of the full adult wage that young people are entitled to will rise, with 17-year-olds reaching 50% and 19-year-olds receiving 75% of the statutory rate. While Minister Hans Vijlbrief acknowledged that businesses may face higher costs, he noted that the increase should help employers attract staff. The changes will also extend to vocational (MBO) students on work-study tracks, ensuring more consistent pay standards across the workforce.

Average mortgage interest rates have reached their highest level in over two years, with the 10-year fixed rate (NHG) climbing to 4.01%. Driven by rising capital market rates linked to geopolitical instability in the Middle East, this increase adds approximately €25 to the monthly net costs of a €400,000 mortgage. While experts at De Hypotheker believe the sharpest peaks are likely over, the combination of higher borrowing costs and global uncertainty has already led to increased buyer caution, stalling the growth of average mortgage amounts for the first time in three years.