Dutch economy contracts 0.5% in Q1 2024

The gross domestic product (GDP) of the Netherlands decreased by 0.5 per cent in the first quarter (Q1) of 2024 relative to Q4 2023, according to the second estimate conducted by Statistics Netherlands (CBS). This marks a downward revision from the first estimate which indicated a contraction of 0.1 per cent.

The economic contraction in Q1 2024 was 0.4 percentage points larger than initially estimated, primarily due to a downward adjustment in exports. Despite this revision, the overall economic picture remains unchanged. The contraction was mainly driven by a decline in the exports of goods, which is linked to a downturn in the manufacturing sector.

Year-on-year (YoY), GDP contracted by 0.6 per cent in Q1 2024, slightly better than the 0.7 per cent contraction reported in the first estimate. This upward adjustment is largely attributable to an improved trade balance. The main contributors to the YoY contraction were declines in the trade balance and investments, as per CBS.

The second estimate also revealed changes in employment figures. The number of people in employment or self-employment increased by 39,000 in Q1 2024 compared to Q4 2023, slightly lower than the 42,000 increase reported in the first estimate. YoY, the number of people in employment or self-employment rose by 122,000, compared to the 117,000 increase reported in the initial estimate.

Fibre2Fashion News Desk (DP)