The Dutch economy is facing a tough time as its economy shrank by 0.3% in the last quarter, according to Statistics Netherlands. This is the second time in a row that the economy has gone down, as it contracted by 0.4% in the first three months of the year.
The Netherlands, which holds the position of the euro zone’s fifth-largest economy, had demonstrated remarkable resilience with an annual economic growth of almost 5% in 2021 and 2022, making a swift recovery from the COVID-19 pandemic’s impact.
But this time, things are different. The recession happened because people spent 1.6% less money, and the exports, also went down by 0.7% compared to the earlier months.
The inflation led to higher food and energy bills, making life expensive for people in the Netherlands and the countries they trade with.
Although the high prices have gone down a bit since they were at their highest in September last year, they’re still pretty high at around 6% in the second quarter of 2023.