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The Dutch economy has fallen into a recession after suffering two subsequent quarters of negative growth, according to official data published on Wednesday.
The economy shrank by 0.3% in the second quarter of the year after falling 0.4% in the first quarter, the Central Bureau of Statistics (CBS) reported.
The technical recession follows the Netherlands‘ strong recovery after the coronavirus pandemic which saw it outperform several of its European neighbors.
“After the coronavirus dip, the Dutch economy recovered much quicker and stronger than the rest of Europe. In the last year that has turned around,” CBS chief economist Peter Hein van Mulligen said.
Dutch contraction in the European context
The statistics office pointed to a decline in consumer spending on things like furniture and clothing, although spending on culture and leisure was up.
Foreign trade was also hit as exports saw a slowdown while imports increased.
As with much of the world, the Netherlands has been battling high inflation and rising interest rates, brought on in part by the decision to stop purchasing cheap Russian oil and gas after it invaded Ukraine last year.
The Netherlands has followed its neighbor Germany — Europe’s biggest economy — into a technical recession while France and Belgium experienced mild growth of 0.5% and 0.2% respectively.
However, at the same time, the job market remained strong with unemployment at just 3.6% — almost a record low.
“For every hundred job-seekers, there are 122 jobs,” Hein van Mulligan said.
The Netherlands is gearing up for a general election in November after the coalition government under Prime Minister Mark Rutte fell apart.
ab/nm (AP, AFP)
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