Netherlands escapes recession: Dutch economy grew 1% in second quarter
The Dutch economy grew by 1 percent in the second quarter of 2024 compared to the previous quarter, Statistics Netherlands (CBS) reported on Wednesday based on the currently available data. This is the first solid growth after almost two years of contraction and stagnation, CBS said. Goods exports, investments, and government consumption drove the growth in the second quarter.
After the pandemic low point in mid-2020, the Dutch economy recovered strongly and grew uninterruptedly until mid-2022, when the Russian invasion of Ukraine sparked the energy crisis. Then followed two years of contraction and stagnation. “In the second quarter of 2024, GDP was slightly higher on balance than in the second quarter of 2022,” CBS said. Compared to the second quarter of 2023, the Dutch economy grew by 0.8 percent.
The exports of goods and services increased by 1.3 percent in the second quarter compared to the first. Exports of chemical products, food, luxury goods, and machinery and equipment increased in particular. The import of goods and services increased less rapidly, by 0.4 percent. “The trade surplus made the most positive contribution to economic growth in the second quarter,” CBS said.
Government consumption grew by 1.0 percent, with more spending on healthcare, public administration, and asylum seekers' reception. Investments in fixed assets increased by 0.4 percent, with particular increases in transport, housing, and machinery.
Household consumption fell by 1.0 percent compared to the first quarter. Corrected for price changes, Dutch families spent less on food, beverages, energy, and in the hospitality industry.
The Dutch labor market became a little less tight. Both unemployment and the number of unfilled vacancies decreased, but the decrease in vacancies was larger. In the second quarter, unemployment was 3.6 percent and there were 108 vacancies per 100 unemployed people.
In the second quarter, the added value - the difference between the production and consumption of energy, materials, and services - increased in the sectors industry, business services, trade, government, and culture, sports, and recreation. Industry’s added value rose the most compared to the first quarter at 3.3 percent. However, in the first quarter of 2024, the sector’s added value fell by the same percentage. Compared to Q2 of 2023, the added value of industry was 0.6 percent lower in the past quarter.
In the second quarter, the Dutch economy performed better than those of its main trading partners, after performing worse in the first quarter. The economy of the entire European Union grew by 0.3 percent. In France and Belgium, GDP increased by 0.3 and 0.2 percent respectively. Germany, the Netherlands’ biggest trading partner, saw its economy shrink by 0.1 percent. In the United States, the economy grew by 0.7 percent.
