The economy of the Netherlands entered recession in the second quarter of this year, with the Gross Domestic Product (GDP) falling 0.3%, after having risen 0.4% in the previous quarter, announced this fourth fair, the Institute of Statistics two Netherlands.
The Dutch economy registered its first technical recession since the Covid-19 pandemic, due to the reduction in consumer spending and the behavior of exports, the statistics institute clarified in a statement, quoted by the Bloomberg financial news agency. .
The drop in Dutch GDP, of 0.3% in the second quarter, follows the 0.4% drop seen in the first quarter, and was well below the 0.2% growth forecast by economists polled by Bloomberg.
The Netherlands is now facing a difficult economic situation and the political tension caused by the resignation of Prime Minister Mark Rute, due to asylum and migration policies, is not making things any easier. Elections for the lower house of Parliament will take place on November 22 this year.
Behind the recession seen in the second quarter is also the shortage of labor, the weakening of external demand from European trading partners and the sharp rise in interest rates, since the European Central Bank (ECB) seeks to control inflation.
“Stability and predictability are needed now, so we have to be careful not to disturb the economy and also raise taxes,” Economic Affairs Minister Micky Adriaansens told the Dutch news agency ANP.
Analysis of the data also reveals that domestic consumption decreased by 1.6%, while exports contracted by 0.7% and public spending increased by 0.7%.
Source: TSF
