The Dutch economy has entered a recession as its quarterly Gross Deposit Products fell 0.3 per cent on a quarterly basis in the second quarter, revealed the first estimate published by Statistics Netherlands on Wednesday. This is the second consecutive quarterly dip, after it shrank 0.4 per cent in the first three months of the year.
The economic growth in the Euro zone's fifth largest economy had been almost 5 per cent per year in 2021 and 2022 due to a quick recovery from the COVID-19 slump. The first recession since the pandemic was because of the dip in consumer spending and exports in the backdrop of increasing inflation that increased the food prices and energy bills in the Netherlands.
Consumer spending in the country fell 1.6 per cent whereas the exports dipped 0.7 per cent in the first three months of 2023. Inflation in the Netherlands has shed since hitting a peak of 14.5 per cent in September last year. Though it was still higher at around 6 per cent in the second quarter of this year.
