Preliminary estimates from the national statistics agency CBS indicate that the Dutch economy shrank by 0.2% in the third quarter of the year, marking the third consecutive quarter of

contraction. The economy had previously contracted by 0.5% and 0.4% in the first and second quarters, officially placing the Netherlands in a state of recession, according to CBS chief economist Peter Hein van Mulligen.

While this marks the first time the country has experienced three consecutive quarters of economic contraction since the 2007 economic crisis, the current recession has not led to significant job losses, and the employment market remains tight. The downturn in the third quarter is primarily attributed to reduced investments in machinery, vehicles, and buildings.

Household spending remained unchanged during the quarter, while government spending increased by 0.6%. Exports saw a decline of 1.6% compared to the second quarter, and imports fell by 2.3%. The economic situation in the Netherlands mirrors that of Germany, where a 0.1% contraction was observed. Belgium and France experienced marginal growth, while the EU as a whole reported no change.

Despite the recession, the Dutch recovery has demonstrated more resilience compared to neighboring countries and the EU average when compared to the pre-pandemic fourth quarter of 2019. However, the difference is narrowing as the years progress. Photo by Ceescamel, Wikimedia commons.