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Dutch Economy Enters Middle East Crisis From a Position of Strength

The Dutch economy posted stronger‑than‑expected Q4 2025 growth, buoyed by robust goods exports and solid government consumption, creating a positive carry‑over into 2026. Manufacturing output rose 0.4% in January and consumer sales improved despite muted retail sentiment. While the Middle‑East conflict raises energy‑price and logistics risks, the Netherlands remains resilient thanks to moderate fiscal support and low unemployment. Household purchasing power is set to increase modestly, though elevated gasoline prices and a high savings rate signal caution among consumers.