Dutch Economy Shrinks Faster than Expected, Entering Recession: CBS Report

By our economics editors

22 dec 2023 om 09:19

The economy shrank faster in the third quarter than previously thought. Figures on household consumption and company investments are slightly worse in new calculations by statistics agency CBS. So we are a little deeper into a recession.

According to Statistics Netherlands, the contraction in the third quarter was 0.3 percent, instead of the 0.2 percent reported in November. This means that the gross domestic product (everything that citizens and companies earn together) fell by this percentage.

The Dutch economy has been shrinking for three quarters in a row. Two quarters of contraction means a recession. This will probably continue with further contraction in the fourth quarter, CBS economist Peter Hein van Mulligen previously suspected. “Consumer confidence is still low and you also see no recovery in the industry.”

Because unemployment is still low – it has even fallen for two months in a row – and there are relatively few bankruptcies, experts do not speak of the prelude to an economic crisis despite the contraction.

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Beeld: Getty Images

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2023-12-22 08:19:41
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