Economy

The average WOZ value of homes in the Netherlands has increased again, reaching €439,000 in 2026. While values continue to rise across all municipalities, growth is slower than the peak seen in 2023. Differences between regions remain significant, with Laren the highest and Heerlen the lowest.

Vion will sell its Food Service Business to Group of Butchers as it continues to shift its focus to the Benelux. The deal includes Salomon Foodworld and two German production sites, while the Leeuwarden plant remains outside the sale. The move follows several years of losses and a broader restructuring effort.

Dutch goods exports grew by 4.4 per cent in April, driven mainly by higher exports of petroleum products, machinery, and transport equipment. Imports also increased, though at a slower pace. Export conditions remain weak due to falling German industrial output and declining producer confidence.

The number of corporate bankruptcies in the Netherlands fell by 19 per cent year-on-year in May, with 287 companies declared insolvent compared to 353 during the same month last year. The national bankruptcy rate dropped to 7.7 failures per 100,000 businesses, down from 9.6 a year earlier, with the transport and storage sector suffering the highest relative losses at 22.6 failures. While business closures had been rising steadily up until 2024, the latest figures confirm that the national bankruptcy rate has stabilised and maintained a gradual downward trend since the autumn of 2024.

Prime Minister Rob Jetten has warned that the continuation of the war in Iran could worsen the Netherlands' economic outlook, making domestic purchasing power heavily dependent on whether the conflict ends. With the central bank predicting that the war will push the Dutch budget deficit to an unacceptable 3.3 per cent this year, breaching the EU's 3 per cent limit, Jetten noted that the government could raise taxes, cut spending, or delay investments to balance the books. However, the Cabinet will wait for updated financial figures in August before deciding on any emergency measures as they finalise the 2027 budget for its official presentation in September.

The Amsterdam stock market hit a new record high on Friday as shares rose across Europe, driven by hopes for peace in the Middle East and major business news. Investor confidence surged after US President Donald Trump cancelled planned attacks on Iran and hinted at a weekend peace deal, while markets also rallied ahead of the historic stock market debut of Elon Musk's SpaceX. As the threat of a wider war eased, oil prices fell below 90 dollars a barrel, which dragged down oil giant Shell by 2 per cent but sent airline Air France-KLM soaring by 6 per cent due to cheaper fuel. Meanwhile, digital payment firm Adyen led the day's corporate gainers, jumping 4 per cent after announcing a 290 million euro takeover of American platform Orb.

The Dutch central bank expects the government's budget deficit to breach the European Union's 3 per cent limit this year for the first time since 2020, reaching 3.3 per cent due to a one-off €8 billion military pension reform, high healthcare spending, and slowing economic growth caused by the war in the Middle East. Although the deficit is projected to drop to 2.6 per cent next year, the central bank has urged the government to exercise strict fiscal caution to maintain a financial cushion against future global shocks. To avoid further emergency austerity measures, the bank advises the coalition government to successfully implement its current financial agreements and suggests reviewing tax discounts for homeowners and self-employed workers, while hoping ministers can resolve disputes with trade unions currently striking over proposed cuts to unemployment and disability benefits.

Ongoing conflict in the Middle East and the blockade of the Strait of Hormuz are dampening Dutch economic growth by inflating energy prices and disrupting global trade. While economists at Rabobank do not predict a full recession, they have downgraded overall growth forecasts to just 1 per cent this year and 0.8 per cent next year. Major sectors like manufacturing, construction, and transport are facing stagnation due to high fuel costs and falling investment, while inflation and tax rises squeeze consumer spending in retail and hospitality. Conversely, the technology and digital services sectors remain largely unaffected, continuing to grow strongly as businesses invest heavily in artificial intelligence and automation to boost productivity.