The economy of the Netherlands has contracted for two straight quarters, statistics show
The Dutch economy has entered a recession after falling for two consecutive quarters, Statistics Netherlands (CBS) revealed on Wednesday.
The Eurozone’s fifth largest economy shrank 0.3% quarterly between April and June, after a 0.4% contraction in the first three months of the year.
The Netherlands is facing its first recession since the pandemic, driven by weak exports and lower household consumption, as surging inflation pushed up food prices and energy bills, according to CBS. Dutch economic growth reached almost 5% per year in 2021 and 2022 in a quick recovery from the Covid-19 crisis.
“The Dutch contraction of 0.3% is striking compared to the economic development in neighboring countries. In France and Belgium, the economy grew by 0.5% and 0.2% respectively in the second quarter of 2023 compared to the previous quarter,” CBS said.
Exports of goods and services dropped by 0.7% quarter-to-quarter in the three months through June, data shows.
“As a result, the trade balance made the most negative contribution to the contraction in the second quarter,” CBS noted.
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