AMSTERDAM (Reuters) – The Dutch economy slipped into recession in the second quarter due to a drop in consumer spending and exports, according to the first estimate of gross domestic product (GDP) released on Wednesday by the Netherlands Institute for Health. statistics (CBS).
The euro zone’s fifth-largest economy contracted 0.3% in the second quarter, after falling 0.4% in the first three months of the year.
The Netherlands thus shows two consecutive quarters of decline, which corresponds to the technical definition of a recession.
In 2021 and 2022, the Dutch economy grew by almost 5% per year.
This first recession since the pandemic was driven by a drop in consumer spending and exports, as runaway inflation drove up food and energy prices in the Netherlands and its trading partners.
Consumer spending fell 1.6%, while exports fell 0.7% from the first three months of the year.
Inflation in the Netherlands has fallen since peaking at 14.5% in September last year, but remained elevated at around 6% in the second quarter of 2023.
(Bart Meijer report, Corentin Chapron, edited by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
