In January, production in the Netherlands was 3% lower than a year earlier. A disappointing number, says BNR in-house economist Han de Jong. After two years of explosive growth, the outlook for 2023 is bleak.
According to De Jong, energy prices play a significant role in the decline. However, not all countries are equally affected. The downward trend is not shared with Germany, where production even increased over the same period. “They are equally affected by high energy prices.” The growth is mainly due to the size of the automotive sector, says De Jong. “Sometimes it was different, but right now they are reaping the benefits of this great industry.”
“Falling production figures are, in principle, never good for the economy”
Bad sign
According to De Jong, the drop in manufacturing data is not a good sign. “Of course you hope that we will eventually set sail together with Germany’s success.” After all, manufacturing offers great material prosperity and plenty of job opportunities as well. “It would be a pity if it were to disappear from us.”
However, De Jong sees the situation bleakly. “Falling production figures, in principle, are never good for the economy.” De Jong points out that there were two years of explosive figures, in the aftermath of the first corona year. “I think we should prepare for moderate economic growth this year.”
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.
