Government consumption drove the Dutch economy's 0.9% growth in 2024
The Dutch economy grew by 0.9 percent in 2024, following a year of almost no growth (+0.1%) in 2023, Statistics Netherlands (CBS) reported based on the available figures. A second, more complete calculation will follow on March 26.
Economic growth in the Netherlands was pushed by consumption last year. “Government consumption contributed the most to growth, with an increase of 3.1 percent. Household consumption grew by 1.1 percent,” CBS said. Exports grew by 0.4 percent and imports by 0.1 percent. Investments’ contribution was slightly negative.
In the fourth quarter of 2024, the gross domestic product (GDP) increased by 0.4 percent compared to the third quarter and 1.8 percent compared to Q4 of 2023. “The increase in GDP in the fourth quarter is mainly attributable to the trade balance and investments,” CBS said.
The exports of goods and services increased by 0.4 percent in the fourth quarter compared to the previous quarter. The biggest increases were in the exports of machinery, natural gas, and electricity. Imports of goods and services decreased by 0.6 percent. The trade balance (exports - imports) increased by over 7 percent.
Investments in fixed assets rose by 3.0 percent, with investments mainly going toward passenger cars and vans. “This coincides with the tax changes for new diesel, petrol, and fully electric vehicles as of 1 January 2025 and changing rules regarding environmental zones in some cities,” CBS said.
Government consumption increased by 0.9 percent, mainly due to healthcare. Household consumption also rose by 0.9 percent, with consumers spending more on cars, among other things.
The Dutch economy’s growth was stronger than those of its main trading partners in the fourth quarter. The economy of the entire European Union grew by 0.1 percent compared to the previous quarter. Belgium’s economy grew by 0.2 percent, and Britain’s by 0.1 percent. Germany and France’s economies shrank by 0.2 and 0.1 percent respectively.
