According to the 2025 central government financial annual report, 2025 was a year of economic stability. Despite increasing economic uncertainty in the world, the Dutch economy grew by 1.8%. The public finances also remained stable, with a budget deficit of 1.6% and a national debt of 44.4% of gross domestic product (GDP) – within the limits of European fiscal rules.
Minister of Finance Eelco Heinen presented the annual report to the House of Representatives today, on Accountability Day. In doing so, the minister emphasised the current economic uncertainty associated with rising geopolitical tensions.
‘Members of the public and businesses are seeing prices rise as a result of the situation in the Middle East. Although the Netherlands has proven to be economically resilient, we must be prepared for scenarios in which our economy performs worse in the short and long term. That is why the government is continuing to ensure sound public finances, so that we have buffers to absorb shocks when necessary.’
Stronger economic growth than expected
The economy performed well in 2025 and growth, at 1.8%, was slightly better than the 1.6% projected by the Netherlands Bureau for Economic Policy Analysis (CPB). Unemployment remained low at 3.9%, wages rose on average by 5.0%, and household purchasing power increased. However, inflation was 3.3%, higher than the 2.1% eurozone average.
Public finances in good order
The public finances remained in good order in 2025. This was mainly due to stronger economic growth, which led to higher tax revenues. The differences compared with the Autumn Memorandum are limited: the budget deficit was 0.2 percentage points lower and the national debt 0.2 percentage points higher. The national debt remains relatively low at 44.4%, but without additional policy measures, it will rise in the coming years, partly due to the effects of an ageing population.
Sound public finances are needed to keep our public services affordable in the long term. Keeping the national debt low is a good thing for the Netherlands because less tax money has to be spent paying interest on that debt, and the bill is not passed on to future generations. The government also believes it is important to have reserves to absorb shocks.
Regularity of financial transactions
Each year, the Court of Audit checks whether financial transactions have been carried out in accordance with the law. In 2025, expenditures (99.46%) and receipts (99.98%) remained within the 1% error tolerance limit. Only for commitments (98.67%) was that standard not met.