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.