Dutch Economy Contracts by 0.7 Percent in Q1
The economies of Belgium and France grew by 0.4 percent and 0.2 percent, respectively, in the first quarter of 2023 compared to the previous quarter. The economy of the United Kingdom grew by 0.1 percent, while that of Germany stagnated.
The Dutch economy's contraction was mainly due to a fall in the trade balance and to greater withdrawals from stocks, especially through the demand for gas, according to the CBS.
The contraction "is a shock, but also not really surprising given the rising prices and the shortage of employees," Micky Adriaansens, minister of economic affairs and climate policy, tweeted. "This contraction could mean that our companies will find it more difficult to remain competitive."
The volume of the Netherlands' exports of goods and services fell by 1.8 percent compared to the fourth quarter of 2022. Imports of goods and services also fell, but by 1.3 percent less than exports.
The trade balance therefore made a negative contribution to economic development in the first quarter of 2023.
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