AMSTERDAM – After two years of contraction, the Dutchindustrial sector is expected to rebound in 2025, according to ING economists. The bank predicts a two percent growth next year, following a three percentcontraction in 2024. This optimistic outlook is driven by a combination of factors, including increased exports, domestic spending, and strong performance in key industrieslike chips, machinery, and chemicals.
More and more lights are going to green in 2025, stated ING, highlighting the anticipated recovery. The Dutch industrial sector was a growth leader in the eurozone in 2021 and 2022, but its performance has been declining since then.
ING’s analysis points to several key drivers of the expected growth:
- Increased Exports: The bank anticipates an increase in exports next year,fueled by the global recovery and rising demand for Dutch products.
- Domestic Spending: ING expects a rise in domestic spending in the Netherlands, further contributing to the industrial sector’s growth.
- Chip Industry Recovery: The global chip market is experiencing a revival, driven by the increasing demand for artificial intelligence applications.Dutch companies like ASMI and ASML, major players in the semiconductor industry, are expected to benefit significantly from this trend. Their customers are gradually replenishing their stock, leading to a resurgence in demand.
- Machine Industry Rebound: The machine industry is seeing a positive turn, with new orders exceeding the average for thefirst time in years. This indicates a renewed confidence in the sector and its potential for growth.
- Resilience of the Chemical Industry: Despite the overall contraction in the industrial sector, the relatively large chemical industry in the Netherlands is expected to remain stable in the short term. ING sees this as a sign that the sector iswell-positioned for future growth.
The way upwards has begun, said ING economists, emphasizing the positive trajectory of the Dutch industrial sector.
The Dutch government has also implemented policies aimed at supporting the industrial sector, including investments in research and development, infrastructure, and green technologies. These initiatives are expected tofurther bolster the sector’s growth potential.
While the outlook for the Dutch industrial sector is positive, ING acknowledges that challenges remain. These include rising energy costs, supply chain disruptions, and geopolitical uncertainties. However, the bank believes that the sector’s resilience and its focus on innovation will help it navigate these challenges andachieve sustained growth in the coming years.
Views: 0