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Economy contracts again, the Netherlands is back in recession

Thursday 14 February 2013

The Dutch economy shrank by 0.2% in the final quarter of last year, meaning the Netherlands is now back in recession, according to initial estimates released by the national statistics office CBS on Thursday.

Year-on-year, the economy contracted 0.9% in the final quarter, the CBS said. In the third quarter, the economy shrank by 1% year-on-year. Two successive contractions means the country is officially in recession.

Household spending was down 3.2% in the final quarter, compared with the year earlier period. Investments were down 5.2% but exports provided some relief, showing 3.2% growth.

Earlier this week, the CBS said inflation has now reached 3%, its highest level in four years.

Reforms

Economic affairs minister Henk Kamp said in a reaction to the new figures that the cabinet is strengthening the Dutch economy through reform.

'The economy is contracting, people are worried about their jobs, their pensions and the value of their home,' Kamp said. 'The only way to boost confidence is to strengthen the economy through reforms and get the government's finances in order.'

The minister also stressed that the Dutch jobless rate is among the lowest in the world.

CBS estimates in English

© DutchNews.nl



 

Readers' Comments

More austerity is the answer!

By Jorge | 14 February 2013 10:53 AM

With inflation at a high once again, and consumers getting taxed left, right and centre, along with the governments feckless way of running both an economy and a country, it's no wonder the Netherlands fell back into recession.

When employers are discouraged to take on new employees because of the archaic and draconian employment laws here, coupled with those who DO have a job having to pay through the nose for everyone else, it's no surprise that the economy is in the toilet.

By A Tax payer | 14 February 2013 12:19 PM

No doubt the CBS will "correct" this statistic is a few months time, concluding that the Netherlands was never actually in a recession and that its economy did in fact grow by that percentage. They did the same thing last year.

By Bob | 14 February 2013 7:37 PM

Ugh. It looks like I made the right decision to return home to Canada when I did. It's too bad that the economy is still doing terribly, and I agree with Jorge in that austerity doesn't seem to be working. Perhaps I'll return again in five years or so, when hopefully things are back on track again.

Good luck, Dutchies and non-Dutchies alike.

By Stupid | 14 February 2013 8:38 PM

More austerity will not be the answer. Government has reduced the subsidies for innovation. Innovation is the only answer. Otherwise I predict that every well-to-do educated one in holland will have to leave the country. I read the redundancy news from every multinational within holland. Its frustrating and alarming and knowledge people are seriously considering to look for other options outside NL where economy and confidence are thriving. A friend of mine told me that I was missed to get redundant in the last round but for sure it will happen within 2 quarters as the sales forecast is deemed to be pessimistic. Government of holland is taking reactive measures. Winds of change started to blow

By Amit | 14 February 2013 11:10 PM

No recession signs in Amstelveen. The army of gardeners are still doing pointless work - clearing the undergrowth and cutting bits off trees, when the pavements are full of snow and dangerous to walk on. It makes me so angry!!!

By Anne Onymous | 15 February 2013 12:39 AM

Recession is an important part of the solution to the biggest problems were facing. An increasing GDP means that we are killing the planet and the experiment that is human life will be soon over, although the planet will probably do just fine without us!
We need to replace the globalisation model with a localisation one where localised businesses are promoted instead of global ones. This will create more jobs and healhier happier lives but will result in a SHRINKING of GDP, ie a recession.
Every rich country including NL needs to get rid of their obsession with economic growth, its the only way to have a chance of saving our species and reversing climate change.

By Amsterdammer | 15 February 2013 3:54 PM

 
 
 
 
 
 
 
 
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