The recovery in the Dutch economy will continue, boosted by investments and exports as well as rising house prices and an increase in consumer spending, according to a new report by the International Monetary Fund.

The economic recovery is leading to ‘considerable’ improvement in the government’s finances, although the strong euro and rising oil prices could present a problem, the IMF says.

Dutch exporters are benefiting from the weak euro while the low oil price is benefiting consumers, the IMF points out.

The government has taken ‘important steps’ to reform the housing market, implement pension and labour reforms and address financial sector problems. However, there are ‘new policy reform opportunities, especially in the tax system and pension system’ as well as the housing market, the IMF says.

In particular, the IMF recommends lowering the maximum amount home buyers can borrow to 90% of the value of the property. A new government financial advisory committee made the same call earlier this month.

The new Dutch limit of 100% is ‘still very high relative to peer countries’, the IMF says.

Read the report (English)