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The Dutch economy is growing again thanks to exports
The economy grew by 2024% in the second quarter of 1,0 compared to the first quarter. The Dutch economy is therefore doing better than that of the European Union (+0,3%). This is evident from new CBS figures. The Dutch gross domestic product (GDP) fell slightly by 0,1% in the first quarter. Exports in particular boosted the economy in the second quarter. Exports of food, machinery and equipment, among other things, increased.
During the first three quarters of 2023, GDP declined quarter on quarter, officially creating a recession. In the last quarter of last year, that pattern was broken with small growth. So now there is somewhat stronger growth of around 1%. Statistics Netherlands attributes this growth mainly to goods exports, which are related to the growth of the industry. GDP growth is also noticeable compared to the second quarter of 2023 (+0,8%).
Exports of goods and services rose 1,3%. This increase is mainly due to the export of chemical products, food and beverages, and home-grown machinery and equipment. Imports rose less rapidly (+0,4%), causing the trade surplus to increase. In addition, investments (+0,4%) and government consumption (+1,0%) contributed to growth.
Statistics Netherlands also publishes the latest export figures for June. That month, the export volume fell 1,0% compared to June 2023. Exports of machinery, petroleum products, food and beverages and transport equipment were particularly lower. According to the August CBS Export Radar, conditions for exports were more unfavorable than in the June radar, which gives an indication of the climate, but does not mean that by definition less was exported.
Household consumption is declining
Household consumption did decline in the second quarter of 2024, by 1,0% on a quarterly basis. Adjusted for price changes, less was spent on food, beverages and energy. Less was also spent in the catering industry, which is attributed to the bad spring weather. The new figures for June also show a decline (-0,7% on an annual basis). Consumers purchased 2,8% less food, drink and tobacco in June than in June 2023 (adjusted for price changes). According to the July consumption radar, conditions for consumption in July were less favorable than in June, according to Statistics Netherlands.
While the added value (the difference between production and consumption of energy, materials and services) of industry fell in the first quarter, it rose the fastest of all sectors in the second quarter with the same percentage (+3,3%). However, compared to the same quarter of 2023, the added value of the industry is 0,6% lower. The added value of agriculture shrank again quarter on quarter, but slightly less than in the first quarter (-0,7% versus -1,0%).
Better than main trading partners
At 1%, Dutch GDP is growing faster than the average in the European Union (+0,3%) and also faster than that of the most important trading partners. The economies of France and Belgium grew by 0,3% and 0,2% respectively and Germany's GDP fell 0,1%. The US experienced growth of 0,7% in the second quarter.
Labor market slightly less tight
"The picture on the labor market is very stable. With 108 vacancies for every 100 unemployed, the labor market was slightly less tight than in the previous quarter," said CBS chief economist Peter Hein van Mulligen in a video message.
Linda van Eekeres
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