High energy prices cost Netherlands 2% of national income

Due to the high energy prices in 2021 and 2022, the Netherlands spent more money abroad than in previous years, according to the Dutch central bank, DNB. The terms of trade loss amounted to approximately 17 billion euros or about 2 percent of the national income, Financieele Dagblad reported.

The terms of trade are the ratio between the average prices of exports and imports. If the prices of imports rise faster than the export prices, the terms of trade fall. Due to the high energy prices, that was the case in both 2021 and 2022, amounting to the massive terms of trade loss.

The energy prices have fallen since then, so the DNB expects that the terms of trade loss could turn back into profit this year.

Lower energy prices also mean lower energy bills for Netherlands residents. ING recently calculated that energy bills were, on average, 14 percent lower in May than in December. About 40 percent of households’ energy bills decreased, a quarter remained the same, and about 30 percent saw their bills increase.