Dutch economy contracted by 0.5% in first quarter of 2024

The Dutch economy contracted by 0.5 percent in the first quarter of 2024 compared to the previous quarter, Statistics Netherlands (CBS) reported on Monday based on its second calculation of the gross domestic product (GDP). The contraction was slightly larger than in the first calculation when CBS reported that the economy shrank by 0.4 percent compared to quarter 4 of 2023.

The first calculations are published 45 days after the end of a quarter based on the then-available data. The second calculation follows approximately 85 days after the quarter’s end based on more complete data.

“The economic picture has not changed,” CBS said. The first quarter’s decline in GDP is mainly due to lower exports, which were linked to a decline in the industry.

The new calculation for the first quarter also included the recently implemented revision of the annual accounts. The European Commission recommends that Member States review their annual accounts at least every five years. CBS implemented new sources and methods so that the picture of the Dutch economy once again aligns will all underlying statistics and international guidelines.

After the revision, CBS also adjusted the previous economic growth figures. In Q4 of 2023, the economy grew by 0.1 percent compared to the previous quarter, and not 0.3 percent as previously reported. Q3’s contraction was 0.4 percent, not 0.3 percent. The second quarter saw no change in the economy, instead of the 0.4 percent contraction reported. And the first quarter of 2023 had a contraction of 0.3 percent, not 0.4 percent.

Compared to Q1 of 2023, the Dutch economy shrank by 0.6 percent in the first quarter of this year. The first calculation had the contraction at 0.7 percent. “The upward adjustment is mainly attributable ot the trade balance,” CBS said, but added that the picture did not change. “The decline in the trade balance and investments contributed most to the contraction.”

CBS also adjusted the job growth figures in the second calculator. The first quarter of 2024 had 39,000 more working people than the fourth quarter of 2023. The first calculation reported 42,000 more jobs. Compared to the first quarter of 2023, the number of employee and self-employed jobs increased by 122,000. The first calculation reported an increase of 117,000.