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AMSTERDAM, Dec 18 (Reuters) - Economic growth in the Netherlands will slow more than anticipated next year, as international trade weakens and environmental rules bite, government policy adviser CPB said on Wednesday.
Growth in the euro zone’s fifth largest economy is set to cool sharply from 2.6% to 1.7% this year and to 1.3% in 2020, the CPB said.
“The Dutch economy is switching into a lower gear, but continues to do well in comparison to other euro zone countries”, CPB director Laura van Geest said.
With Brexit on the horizon and lingering uncertainty over U.S. trade policies, world trade is expected to slow considerably, hitting traditionally strong Dutch exports.
At home, strict environmental rules hurt construction, as thousands of projects across the Netherlands have been put on hold after a court ruling which found Dutch builders and farmers in breach with EU rules on nitrogen emissions.
Consumer and government spending, on the other hand, are seen to stimulate growth, as wages increase and unemployment remains low.
In September, the CPB had forecast growth of 1.8% and 1.5% for 2019 and the year after.
The Dutch central bank on Monday said growth would slow to 1.4% next year and 1.1% in 2021. (Reporting by Bart Meijer Editing by Shri Navaratnam)