The Dutch economy contracted for the fourth straight month, according to data from the Central Statistics Office. Research shows that the economy contracted 12% in April compared to April last year. This is the biggest economic downturn since the 2008 financial crisis. Editor-in-chief Jasper Lukkezen of the economists’ magazine ESB speaks of a sharp decline. “The recession could be bigger than we consider.”
Statistics from the Netherlands show that the economic contraction is accelerating. The March data make it clear that there was a contraction of 3.7 percent compared to the same period last year. April data show a 12% contraction. “The shrinkage is certainly accelerating, so it indicates something is up,” Lukkezen says. According to him, a mild recession was first considered.
According to Lukkezen, there is a significant decline and further development is yet to be looked into. There will be clarity only at the end of the July quarter, “but it seems to me that a recession in the Netherlands is inevitable”. The industrial contraction is visible in all sectors except the transport sector, where there has been little growth. Sub-sectors of metals, rubber, food, machinery, plastics and chemicals manufacturing were all affected.
European problem
The Dutch economy contracted by 0.7% in the first quarter of this year. According to Lukkezen, the economy is contracting across the eurozone and Europe is entering a recession. During the corona period, it was more difficult for industry to obtain raw materials. It’s different now, according to Lukkezen. “Orders are simply lower now, domestic demand and world trade are disappointing.” Due to high inflation, the Dutch have less to spend and consequently the demand for products is decreasing.’
“That’s really the only good news I can get from this post”
Only the demand for systems has increased, many products such as heat pumps and air conditioners are being installed. According to Lukkezen, these are products that are often replaced during the energy transition. Consumers often choose more economically viable appliances. “That’s really the only good news I can get from this post,” says Lukkezen.
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.
