Netherlands purchasing power expected to decline in 2027

Economic forecasts for the Netherlands indicate a decline in purchasing power for most households in 2027. While the CPB notes that measures in the Miljoenennota will mitigate the decline by 0.2 percentage points compared to previous estimates, the median purchasing power is still expected to drop by 0.3 percent.

According to Nibud, the average decline is approximately 0.1 percent. This shift marks the first time since the 2022 energy crisis that most households face a loss in purchasing power. The decline is attributed to tax increases outlined in the budget plans, which offset a projected 3.8 percent gross wage increase.

The impact varies significantly by income and household composition. For example, a single worker earning 45,000 euros is expected to lose 12 euros per month, while certain middle-to-high-income families with children could see losses as high as 1.3 percent, or roughly 107 euros per month.

Inflation is projected at 2.7 percent for 2027, slightly lower than previous estimates due to an extension of the diesel excise tax discount. However, the postponement of an increase in healthcare deductibles is expected to raise healthcare premiums, further pressuring purchasing power. The government budget deficit is also expected to rise to 2.2 percent of GDP.