Photo credit: CBS. Information from the latest report.
According to the first quarterly estimate conducted by Statistics Netherlands (CBS), in Q2 2023 the volume of gross domestic product (GDP) fell by 0.3 percent relative to the previous quarter. In Q1 2023, GDP fell by 0.4 percent. The contraction in Q2 is mainly due to a decrease in the trade balance and in household consumption.
Trade balance and household consumption are falling
Exports fell by 0.7 percent compared to Q1 2023. This was due to a decrease in exports of goods; service exports actually increased. Imports of goods and services increased by 0.5 percent. As a result, the trade balance contributed most negatively to the contraction in the second quarter.
In addition, household consumption fell by 1.6 percent. On the other hand, investments in fixed assets increased by 1.3 percent in Q2 2023 relative to Q1. This was due in part to more investments in transport equipment and machinery. Investments in residential property fell. Public consumption grew by 0.7 percent.
Economic growth in the European Union stagnating
The 0.3-percent contraction in the Netherlands stands out compared to the economic development in neighbouring European countries. In France and Belgium, the economy grew by 0.5 and 0.2 percent respectively in Q2 2023 compared to the previous quarter. The German economy stagnated, with a growth of 0 percent. On average, GDP in the European Union (EU) remained the same as in the previous quarter. The British economy grew by 0.2 percent. However, compared to pre-pandemic Q4 2019, economic recovery was stronger in the Netherlands than in neighbouring countries and across the EU.
Read more on and download the report on CBS’s website.