Economy

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.

According to the Chamber of Commerce (KvK), the number of businesses closing down fell by 7.2% in the first quarter of this year, marking the first decline in two and a half years. While overall start-ups rose by 2%, sectors such as healthcare and the arts saw a drop in new entries due to ongoing uncertainty surrounding self-employment regulations. Experts suggest the general dip in closures indicates that many struggling owners have already exited the market, though strict rules regarding "bogus self-employment" continue to make potential entrepreneurs more hesitant in specific industries.

TSMC posted record first‑quarter profits in 2026, driven by relentless global demand for AI chips. The world’s largest advanced‑chip manufacturer raised its full‑year outlook and said the Middle East conflict has not disrupted its supply chain or slowed investment in AI infrastructure.

Dutch house prices slipped back below the half‑million‑euro mark in early 2026, while the number of homes on the market increased significantly. New figures from the national real estate association (NVM) show cooling demand, regional contrasts, and a housing market that is slowly regaining balance.

The Dutch economy is facing renewed pressure as the Iran conflict drives up global energy prices. Fresh projections from the Central Planning Bureau show that inflation will rise faster than previously expected, wiping out the modest purchasing‑power growth households were set to gain this year.