subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now
Picture: 123RF/rawpixel
Picture: 123RF/rawpixel

Amsterdam — The Dutch economy has entered a recession as it shrank 0.3% on a quarterly basis in the second quarter, a first estimate published by Statistics Netherlands on Wednesday showed.

The eurozone’s fifth largest economy shrank for the second consecutive quarter, after a 0.4% contraction in the first three months of the year.

Economic growth in the Netherlands had been almost 5% per year in 2021 and 2022 in a quick recovery from a Covid-19 slump.

The first recession since the pandemic was driven by a drop in consumer spending and exports, as surging inflation drove up food prices and energy bills in the Netherlands and its trading partners.

Consumer spending fell 1.6%, while exports were 0.7% lower than in the first three months of the year.

Inflation in the Netherlands has dropped since hitting a peak of 14.5% in September 2022, but was still relatively high at about 6% in the second quarter of 2023. 

Reuters

subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.