An unexpected contraction of 0.7 percent puts the Dutch economy at a disadvantage in the European Union

The Dutch economy contracted by 0.7 percent in the first quarter of this year compared to the last quarter of 2022. Central Bureau of Statistics Tuesday on a temporary basis. The economic slowdown is unexpected – growth was still 0.4 per cent in the previous quarter – and runs counter to the European trend.

The contraction is mainly due to a decline in the trade balance: both imports and exports of goods fell. Exports suffered a bigger setback, resulting in a negative trade balance. A lot of gas has also been pulled out of Dutch stocks, which the Dutch Statistics Office also considers deflation. In addition, the trade, hotels and restaurants sector had a negative impact on economic development.

The deterioration of the Dutch economy conflicts with developments in the European Union. The growth of the European Union countries reached 0.3 percent. Neighboring countries such as Belgium (0.4%), France (0.2%) and the United Kingdom (0.1%) also grew in the first quarter. The German economy remained at the same level, and there was no deflation either.