| Summary: | The 2022 Article IV Consultation discusses that Russia’s invasion of Ukraine is posing new challenges, but the Netherlands has suffered a smaller decline in the terms of trade compared to the rest of the euro area. Growth is projected to slow to 0.6 percent in 2023 from 4.2 percent in 2022, as high inflation weighs on consumption, external demand wanes, and financial conditions tighten. Over the medium term, growth will be underpinned by public investment and reforms. Headline inflation is expected to moderate in 2023 with the activation of the energy price ceiling, while core inflation is projected to peak in 2023 at about 7.3 percent. The fiscal deficit is projected to increase to 2.8 percent of gross domestic product (GDP) in 2023, mainly reflecting government measures to cushion the impact of high-energy prices and the economic slowdown. However, the Dutch fiscal position remains strong, with the public debt to GDP ratio expected to remain below 50 percent over the medium term
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