The Dutch economy contracted by a ‘considerable’ 1.1% in the third quarter of this year compared with the second, the national statistics office CBS said on Thursday.
With similar developments elsewhere in Europe, it is clear the Netherlands and EU as a whole have to take steps to ensure economic recovery, economic affairs minister Henk Kamp said.
‘This is why the new cabinet wants to get the government’s finances in order, get rid of unnecessary red tape and give companies better access to financing,’ Kamp said in a statement.
Compared with a year ago, the Dutch economy shrank by 1.6%. Year-on-year there was fractional growth of 0.1% in the first six months of 2012.
The jobless total has also gone up, hitting 6.8% of the working population in October, the CBS said. In September, the official unemployment rate was 6.6%.
The youth unemployment figure in the Netherlands has now reached 13.3%.
No simple solution
Social affairs minister Lodewijk Asscher described the increase as ‘strong’. There is no simple solution to solve the problem, Asscher said, adding that the Dutch unemployment rate is still among the lowest in Europe.
There are now five people chasing every job vacancy.
Household spending continues to decline, with a 1.8% drop in the third quarter. This means Dutch families have now reduced their outgoings for 18 months in a row, the CBS said.