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AMSTERDAM, June 19 (Reuters) - Economic growth in the Netherlands will slow to 1.5% in 2020, as exports and investments are hit by U.S. trade policies, national forecasting agency CPB said on Wednesday.
Expansion of the euro zone’s fifth-largest economy is set to drop to 1.7% this year, the government’s main adviser said, down from 2.7% in 2018.
“Cold winds from abroad are weakening Dutch economic growth”, the CPB said.
“Headwinds are mainly caused by the uncertainty over U.S. trade policy, which erodes confidence among companies and consumers.”
The ongoing trade dispute between the United States and China has significantly slowed international trade, while the threat of higher U.S. import tariffs on European cars is dampening growth on the continent.
But tariff threats are not the only worry for the Dutch, the CPB said, as the risk of a no-deal Brexit has increased since the resignation of Prime Minister Theresa May, while the Italian economy and political landscape remain unstable.
Meanwhile, unemployment in the Netherlands is expected to remain at historically low levels throughout 2020, while inflation is set to drop from 2.6% in 2019 to 1.4% next year.
Reporting by Bart Meijer; Editing by Jacqueline Wong