The Dutch manufacturing industry grew more than three percent in October compared to a year ago. Sounds good, but a month-to-month comparison paints a completely different picture. “It’s going downhill fast, the trend is really not good,” says BNR in-house economist Han de Jong.
According to Statistics Netherlands (CBS), the average industrial daily production was 3.3% higher than last year. But according to De Jong, that’s all. ‘In October, growth was already half a percentage point lower than the previous month. And in seven of the last ten months of this year, production has reduced. And that three percent year-on-year growth is the lowest growth since March 2021.”
According to De Jong, the Dutch economy is therefore rapidly going downhill. Machine building and transport still show a good picture, but the blows are particularly hard in the chemical sector, where production has fallen by thirteen percent. This all has to do with high energy prices, which remain a cause for concern. ‘Government support is mainly for individuals, there is much less support for companies.’
Strong blows
A lot depends on how that price develops, thinks De Jong. But energy-intensive sectors continue to be hit hard. ‘The chemical sector employs 35,000 people and German chemical giant BASF has already said that the whole sector is doomed due to current energy prices. It might be an exaggeration, but they are right to sound the alarm.’
BASF has already announced that it will transfer production from Europe to the USA. ‘If production in this sector drops by thirteen per cent in the Netherlands, demand here will also drop, but it’s a logical decision if energy prices rise so fast here and not elsewhere. There is already talk of a deindustrialisation of Europe. This speeds it up and it’s not a good plan.’
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
