The Dutch economy contracted by 0.7% in the first quarter of this year compared to the fourth quarter of 2022, according to a first estimate by Statistics Netherlands. The statistics office attributes the economic downturn primarily to weakening world trade, as a result of which exports have declined.
The Netherlands is doing much worse than its neighbours. For example, the Belgian and French economies grew by 0.4% and 0.2% respectively. The British economy grew by 0.1%, the German economy stagnated with 0% growth. Average growth in the European Union was 0.3%.
The deterioration in the last quarter is not due to the reduction in investments in construction or to the lower consumption of goods such as cars, aircraft and machinery. These investments actually grew by 1.1%. According to Statistics Netherlands, households used fewer services, but bought more goods. Government consumption grew by 0.5%.
Exports down
The export of goods and services decreased by 1.8% compared to the fourth quarter of 2022. ‘This is because the export of goods has decreased. The export of services grew little. Imports of goods and services also fell, but by 1.3% less than exports’, according to Statistics Netherlands.
According to economists, the sectors of commerce, catering, transport and storage have made the most negative contribution to economic development. Construction has made the most positive contribution. Our country’s economy grew by 1.9 percent in the first quarter compared to the same period of the previous year. But then the economy was still severely slowed down by a tough corona lockdown.
The construction industry is growing faster
In more than half of the industries, value added (the difference between the production and consumption of energy, materials and services) decreased in the first quarter of 2023 compared to the fourth quarter of 2022. The steepest decline was in mining, where the least gas was extracted. The added value of the construction sector increased the most, at 2.4%. Construction also made the most positive contribution to economic development.
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.
