Issue Low growth and reliance on productivity to sustain the welfare state

Summary

The report finds Dutch economic growth to be low, while noting that growth still helps sustain the welfare state. In an ageing society where labour input no longer expands, keeping the economy growing means that GDP gains must come largely from higher productivity. That implies raising output per worker through technology, automation and knowledge-intensive sectors. As the ratio between working and non-working people shifts sharply, a smaller group of workers will have to carry the heavy costs of pensions, state pensions and care. The report adds that large outlays for the energy transition, the circular economy, climate adaptation, housebuilding and defence also lie ahead, and that by around 2050 GDP growth may no longer be the engine of government policy.