The Dutch economy grew faster than expected in 2025, expanding by 1.9% over the year, according to provisional figures from national statistics agency CBS.

Growth was driven mainly by exports, and spending by households and the government. The growth figure outstripped the central bank forecast of 1.7%, which in itself was an upward revision from earlier estimates. Economists had assumed the impact of the US-led trade war would be more severe.

Economic growth in 2025 was close to the long-term average of around 2% a year over the past three decades. In the fourth quarter, gross domestic product rose by 0.5% compared with the previous quarter.

Exports increased by 1.3% in the final three months of the year, led by higher sales of petroleum products, machinery and transport equipment, the CBS said. Imports also rose, but by 0.6%, meaning the trade balance made the largest contribution to growth in the fourth quarter.

Government spending was another strong driver, rising by 1.1%, largely due to higher healthcare spending and wage costs. Household spending also rose, up 0.3% quarter on quarter, partly because of higher spending on food after adjusting for inflation.

Investment remained the weakest part of the economy. Investments fell by 0.1% compared with the third quarter, marking a second consecutive quarterly decline. Over the full year, however, investment was still 0.5% higher than in 2024, the CBS said.

ABN Amro economist Jan-Paul van de Kerke told the Financieele Dagblad the export contribution is “remarkable” given US import tariffs and the uncertainty surrounding them.

He said stronger growth in Germany and a good year for the machinery sector could help explain the outcome, with chipmaker ASML playing a central role.

Pressure on the labour market has continued to ease. There are now 93 vacancies for every 100 unemployed people, down from a peak of 142 in 2022. Unemployment has risen to 4% of the labour force, returning to its pre-pandemic level.