Reuters reported that the Dutch economy has entered a recession in the second quarter, shrinking 0.3% on a quarterly basis, according to the first estimate released by Statistics Netherlands on 16th August.

The eurozone’s fifth largest economy contracted for the second quarter in a row, following a 0.4% contraction in the first three months of the year.

Economic growth in the Netherlands was nearly 5% per year in 2021 and 2022, indicating a rapid recovery from Covid-19.

The first recession since the ‘pandemic’ was caused by a drop in consumer spending and exports, as rising inflation increased food and energy prices in the Netherlands and its trading partners.

Consumer spending fell 1.6%, while exports fell 0.7% from the previous three months.

In the Netherlands, inflation has declined since reaching a high of 14.5% in September of last year, but it remains relatively high at around 6% in the second quarter of 2023.

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