Economic Affairs Minister Micky Adriaansens is shocked by the rate of contraction the Dutch economy has shown in the first quarter of this year. “We haven’t seen a contraction of this magnitude in a long time, so you have to think carefully about what’s going on.”
Adriaansens says this is mainly due to the decline in exports, which she says can be partly explained by the higher prices in the Netherlands. “We also have to deal with rising wages and higher energy costs, which means that the Dutch competitive position abroad does something,” says Adriaansens. “On the other hand, people at home haven’t really noticed much yet.”
“The Netherlands is simply a very trade-dependent country, so we are sensitive to those kinds of fluctuations”
He says Dutch consumption figures have remained the same, although one has to be careful. Especially since it hasn’t seen a number like 0.7% coming. “I don’t think in percentage points, but 0.7 percent is really something,” she continues. ‘If you look at neighboring countries, you see that the figures are very different. The Netherlands is simply a very trade-dependent country, so we are sensitive to those kinds of fluctuations.’
Alert
According to Adriaansens, the Netherlands would do well to become more careful when it comes to trade opportunities, and therefore something needs to be done about it. Especially since Holland depends on world trade for thirty percent of its total income. “We have to maintain that position,” he says. “And you do it in different ways.”
To this end, he will first look at the Dutch business climate, which offers stability to foreign investors. Furthermore, Adriaansens wants to continue investing in innovations and relationships with countries with which trade is good.
Failed
However, according to Adriaansens, there’s no reason to panic. To say that the Dutch economy has failed is an exaggeration. “We’re talking about a quarter now and we had a year before that where it was really good,” he says. “For example, if you look at the European Commission’s forecast for the Dutch economy this year, it still expects a growth rate of 1.8 percent.”
But since the growth rate can be achieved, the Netherlands should not stand still, he stresses. “We have to keep investing in what we’re good at, because it’s not an automatic fact that we always stand our ground.”
recession
According to Adriaansens, therefore, a recession is not yet on the horizon. Not only does this require two contraction quarters in a row, but he also believes the Netherlands still have room to do something about it. “Above all, we must ensure stability and be careful of tax increases,” he concludes.
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.
