News CBS
Recession fears do not come true, economy grows 4,5%
The economy grew again by 2022% in the last quarter of 0,6, after a contraction of 0,2% in the third quarter. This brings GDP growth over last year to 4,5%. This is evident from provisional figures published today (Tuesday) by Statistics Netherlands (CBS). "There was a fear at the end of last year that the Netherlands would also shrink in the fourth quarter and our country would fall into recession. This fear has therefore not come true," said Peter Hein van Mulligen, chief economist of CBS, in a presentation.
In 2021, the economy grew by 4,9%, after a contraction of -3,9% in the first corona year of 2020. This means that economic growth in 2022 was the second highest in this century so far. The value added of the agricultural sector decreased by 0,6% in the fourth quarter, while it still grew by 2022% in the third quarter of 1,7. The tightness on the labor market increased slightly further in 2022: 85.000 jobs were added.
GDP growth is higher than in neighboring countries. The economic growth is mainly due to higher household consumption and the increase in the trade balance. Households (with an inflation correction) spent 0,9% more in the fourth quarter of last year than in the third quarter. In particular, more was spent on services such as culture and recreation, catering and transport and communication. Government consumption also grew: by 0,4%. Over the entire year 2022, 34% more was spent on culture, recreation and other services than in 2021. "This growth is mainly due to catch-up demand from consumers, who were finally able to go out again after two corona years," says Van Mulligen.
Trade balance contributes positively
Compared to Q3, 3,4% more goods and services were exported. Imports increased by 2,2%. Statistics Netherlands has also published consumer spending for December. Consumers spent 9,9% more than in December 2021. 20% more was spent on services. On the other hand, 0,6% less was allocated to goods. Consumers spent 5,5% less on food, beverages and tobacco in December than one year previously. Statistics Netherlands recently reported that the retail sales volume had contracted by 0,5% in December compared to December 2021. The volume of the non-food sector increased by 11,1%, while that of the food sector contracted by 7,8%.
The trade balance also increased over a year. The volume of goods exports was 4,7% higher in December than in December 2021. In particular, more petroleum products, machinery and equipment were exported. However, the export of chemical products was lower. The volume of goods imports was 4,5% higher in December than in December 2021. According to the CBS Exports Radar, conditions for exports are more favorable this month than in December 2022. Investments in fixed assets also increased in the fourth quarter compared to of the third quarter (+0,5%), especially in housing, buildings and infrastructure.
Higher growth than neighboring countries
Germany experienced an economic contraction of 0,2% in the last quarter. The economy grew by 0,1% in both Belgium and France. The average growth in the EU was 0%. This was also the case in the United Kingdom. The United States economy grew by 0,7% faster in the fourth quarter of 2022.
Linda van Eekeres
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