IMF Urges Supply-Side Reforms to Boost Growth and Tackle Structural Constraints
The International Monetary Fund (IMF) concluded its 2025 Article IV consultation with the Netherlands on July 16, warning that trade tensions and domestic policy uncertainty threaten the nation’s economic resilience.
Despite projected GDP growth of 1.1% in 2025 and 1.2% in 2026, driven by domestic demand, the Dutch economy faces critical bottlenecks in housing, labor, nitrogen emissions, and electricity grid congestion.
The IMF urges a pivot from demand-driven fiscal policies to supply-side reforms, including investments in infrastructure, education, R&D, and housing, alongside tax reforms to boost productivity and SME financing.
These measures aim to address structural constraints and support sustainable growth while managing green and demographic transitions.
With inflation moderating but risks elevated, the IMF emphasizes vigilance in monitoring financial systems and real estate markets to ensure stability.
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