Dutch economy dipped into recession as domestic spending drops

The Dutch economy is currently in a slight recession, after a contraction of 0.5% in the first three months of the year, national statistics agency CBS said on Tuesday.

The economy contracted 0.1% in the final quarter of 2020, and two contractions in a row is the official definition of a recession, the CBS said. The slight recession had been expected by economists.

The downturn is largely due to lower domestic and government spending. In particular, private households spent 3.5% less in the first three months of the year, thanks to the lockdown which was introduced in mid December when all non-essential shops were closed.

Meanwhile, the construction sector, industry and business services are all expanding, the CBS said. Investments rose 3.7% and both imports and exports were up.