Dutch economy shrank 0.2% in third quarter

The Dutch economy contracted in the third quarter, Statistics Netherlands (CBS) reported. The contraction is mainly due to less investment in housing and infrastructure.

The economy shrank by 0.2 percent between July and September. Investments decreased by 1.7 percent. This is mainly because less was invested in housing and infrastructure, 0.4 percent and 4.2 percent, respectively. CBS noted that households spent slightly more than in the second quarter, namely 0.1 percent. Imports and exports also rose, by 1 and 0.9 percent, respectively.

On an annual basis, the economy grew by 3.1 percent. According to CBS, that is due to the coronavirus measures, which still impacted the third quarter of last year. Imports and exports increased year-on-year. That is mainly due to re-exports, the export of previously imported products, which grew by about 4 percent. Imports were 2 percent higher than a year earlier.

Because no coronavirus measures apply anymore, consumer spending also increased. Consumers spent 2.3 percent more on an annual basis, including on culture, recreation, and catering.

If the economy shrinks again in the fourth quarter, the Netherlands will be in a recession. Last week, the European Commission already expressed the expectation that most EU countries will enter a recession before the end of the year, and it would last until next spring.