The war in the Middle East and a shipping blockade in the Strait of Hormuz are slowing down the Dutch economy. Economists at Rabobank explain that these events have pushed up energy prices and disrupted international trade. While a full economic crisis is not expected, the country is growing much more slowly than before. Experts predict the Dutch economy will only grow by 1 per cent this year and 0.8 per cent next year.
Several major industries are facing a difficult two years. Factories and manufacturing companies will see growth drop to just 0.4 per cent next year, after a brief boost this year from businesses buying extra stock to be safe. The construction sector is also flatlining because fewer people are investing in houses, though road and bridge repairs will keep companies slightly busy. Meanwhile, transport and delivery firms are struggling with high fuel costs and less demand from other businesses, keeping their growth below 1 per cent despite a temporary tax cut for lorries.
Everyday businesses are also feeling the squeeze. High inflation means people have less money to spend, and recent government tax rises are making things even harder. Because of this, shops, hotels, restaurants, travel agencies, and recruitment companies are all seeing their growth slow down as customers cut back on spending.
On the other hand, the tech sector is completely avoiding these problems. Computer and technology services are still growing rapidly because the war does not affect them in the same way. Companies everywhere are still spending large amounts of money on digital tools and Artificial Intelligence to modernise their businesses and save time.
@anp | NEWS BRAINPORT
