The Dutch economy is unlikely to grow next year. The price ceiling for energy cannot prevent life from becoming more expensive across the board in 2023 as well.
The International Monetary Fund (IMF) has conducted research into the Netherlands in recent days and presented the first results on Friday. The researchers believe that the Dutch economy is still growing by 4.2 percent this year, but by only 0.6 percent next year.
According to the institution, life has become 11.8 percent more expensive this year. In 2023, the price level is likely to rise by 4.2 percent.
The IMF emphasises that the government’s support measures mitigate the impact of high energy prices, but that the price ceiling for Energy also makes it more difficult to reduce inflation.
That’s because the price cap isn’t just aimed at households and businesses that really need help. Every Dutch person benefits. This is how the government boosts consumption, says the IMF. This can cause the prices to rise even further.
Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at email@example.com