Economy

The war in Iran is acting as a major brake on the Dutch economy, with Rabobank warning that growth will slow across every sector as energy and transport costs climb. Manufacturing, construction, and transport are expected to be hit hardest, potentially seeing growth stall or even shrink if oil prices reach $150 per barrel. While the healthcare sector remains resilient due to an ageing population, a shift toward more cautious consumer spending is likely to hurt retailers and the hospitality industry, as geopolitical uncertainty forces both businesses and households to tighten their belts.

The AEX index closed down 0.2 percent at 1000.62 points. Stock exchanges in Frankfurt, Paris, and London also dropped by up to 0.7 percent.

Inflation could be significantly higher this year due to the war in the Middle East, the CPB warns in its latest forecast. Both the baseline estimate and the risk scenario carry considerable uncertainty. If energy markets remain disrupted, inflation could end up more than a quarter higher than in the CPB’s standard projection, which currently expects inflation to ease to 2.3 percent. It remains highly uncertain how long the conflict will impede oil and LNG shipments through the Strait of Hormuz or prompt Gulf states to reduce energy production.

The Dutch gas network operator has advised the government to create an emergency fuel stockpile to protect the economy from prolonged supply disruptions. Experts warn that while short-term issues are manageable, a major long-term outage could lead to energy poverty and severe price volatility. The proposal suggests a shift toward long-term energy security by utilising technical gas reserves usually kept deep underground.

Eindhoven is considering a deal to purchase the city's main concert hall to secure its future. The move aims to lower long-term costs and allow for major improvements to the regional cultural landmark.

Eindhoven councillors have approved ASML's massive expansion at the Brainport Industries Campus alongside major investments in regional infrastructure. The project, which includes new bus lanes and road widening, aims to support 20,000 new jobs while connecting the region through the high-speed Brainport Line.

unkering stations in the Netherlands are seeing a sudden dip in activity after a rush of inland shipping operators scrambled to fill their tanks last week. While vessel owners are currently avoiding the high diesel prices—driven largely by the closure of the Strait of Hormuz—industry experts warn that the increased transport costs will eventually reach consumers.

A new Eindhoven factory will produce the world’s first industrial-scale photonic chips using 6-inch wafers. This €150 million project secures Europe’s lead in high-tech innovation. It will power future AI systems and 6G networks.