Dutch economy stagnates in first quarter of 2022

The Dutch economy stagnated in the first quarter of 2022, showing no growth or contraction. Compared to the last quarter of 2021, the Dutch economy grew 0 percent in the first quarter, Statistics Netherlands (CBS) said on Tuesday.

"That does not mean that nothing happened," CBS chief economist Peter Hein van Mulligan explained, NU.nl reports. "It means that economic growth did not accelerate or slow down." And that is not necessarily good or bad news, he added. "There was no growth mainly because government spending was lower, which was back to a slightly more normal level."

In the last quarter of 2021, the Cabinet still spent a lot of money on coronavirus vaccinations and tests. The coronavirus pandemic led to strange movements in the economy, the stats office stressed. 

According to Van Mulligen, a 0 percent economic growth is rare "but can happen." Looking at annual growth, the economy grew 7 percent in the first quarter compared to the same period in 2021.

Economic growth was moderate throughout the European Union in the first months of the year, Van Mulligen said. "Previously, the Netherlands did a little better than the European average, now a little worse."