Unexpectedly strong growth of the Dutch economy

This article was last updated on August 14, 2024

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Unexpectedly strong growth of the Dutch economy

The Dutch economy is growing again. This is reported by the Central Bureau of Statistics. There was still a contraction in the first three months of the year, but now the size of the Dutch economy has grown by 1 percent compared to the previous quarter.

The growth is greater than economists expected. Peter Hein van Mulligen, chief economist at the statistics office, is also surprised by the strong growth. “I didn’t see it coming either.”

It remains to be seen whether the growth will continue, he emphasizes. “We cannot yet speak of a new trend.” The total size of the Dutch economy is larger than ever due to growth.

Recovery industry

In the first quarter, Dutch industry mainly caused a contraction of the economy. Now that sector is responsible for the recovery. More products were produced that went abroad, such as chemical products, food and beverages, machines and equipment. As a result, exports increased by 1.3 percent.

Consumers, on the other hand, spent less. Less was spent on food, drinks, energy and catering. “That was partly caused by the bad weather,” says Peter Hein van Mulligen. “This can be seen in the catering industry, which has had a mediocre quarter. Consumers are hesitant, prices are high.”

The Dutch economy has been struggling since 2023. “This is a welcome interruption,” says Van Mulligen. “It is still too early to speak of a new period of growth. We have to wait another three months for that.”

More workers

The latest labor market figures show that more and more people are working. The number of jobs increased by 0.2 percent last quarter to 11.6 million. The number of vacancies fell slightly, but there are still more vacancies than unemployed people in the Netherlands.

Minister Beljaarts of Economic Affairs calls the growth figures good news. He emphasizes that future prosperity is under pressure due to an aging population and the lack of personnel, houses and space on the power grid.

‘Don’t bully companies away’

Beljaarts therefore wants to focus on growth in productivity, by doing more with the same number of people. He believes that entrepreneurs and companies are crucial for this growth in productivity: “That’s where innovative, creative ideas arise and in order for them to flourish, they need space to do business.”

Beljaarts does not want the burden on businesses to increase further: “We must cherish companies and not bully them away. We should therefore appreciate companies from The Hague a little more.”