News CBS
Economy shrinks 0,7 percent in first quarter
In contrast to neighboring countries, the Dutch economy contracted in the first quarter. The volume of GDP fell 0,7% compared to the last quarter of 2022, the Central Bureau of Statistics (CBS) reports. In that quarter, however, there was a slight growth of 0,4%. The contraction in the first quarter is mainly due to a lower trade balance and reduced inventories.
"After the corona dip, the economy grew at a rapid pace, but that growth has stagnated since the spring of 2022," said Peter Hein van Mulligen, chief economist at CBS in a video message.
The trade balance made a negative contribution to economic development in the first quarter. Exports of goods fell by 1,8% compared to the fourth quarter of 2022. Exports of services grew slightly. Imports of goods and services also fell, but less sharply. The withdrawal of gas from stocks also contributed to the contraction.
In more than half of the industries, the added value (the difference between production and consumption of energy, materials and services) fell in the first quarter of 2023 compared to the fourth quarter of 2022. But not in the agricultural sector, where the added value increased slightly, while it decreased slightly in the last quarter of 2022.
The EU is experiencing slight economic growth
There was no contraction in our neighboring countries. On average, growth in the EU amounted to 0,3%. In Belgium, the economy grew by 0,4% and in France by 0,2%. The British economy grew by 0,1% and the German economy stagnated. The US economy also grew by 0,3%. If you compare the volume of GDP with the fourth quarter of 2019, the recovery of the Dutch economy is stronger than that of neighboring countries and the EU, according to Statistics Netherlands.
Compared to the first quarter of 2022 (when corona measures were still in place), the Dutch economy grew by 1,9%.
Purchased fewer foodstuffs in March
Statistics Netherlands has also published consumption figures for March. Households bought 0,8% more that month (adjusted for price changes) than in the same month a year earlier. More services were bought, but fewer goods. In March, consumers bought 5,8% less food, beverages and tobacco. Statistics Netherlands recently reported that the sales volume of food in the retail trade shrank by 5,7% in March compared to a year earlier (for the entire retail trade this was -7%).
Labor market remains tight
The labor market remains tight. "Both the number of unemployed and the number of vacancies remained almost the same. For every 100 unemployed there are now 122 vacancies. At the same time, more jobs were added, namely 63.000," says Van Mulligen.
Linda van Eekeres
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