Economic contraction 0.3 percent in Q2 2023

All figures in this news release are volume figures. This means that they have been adjusted for price changes.

Trade balance and household consumption are falling

Exports fell by 0.7 percent compared to Q1 2023. This was due to a decrease in exports of goods; service exports actually increased. Imports of goods and services increased by 0.5 percent. As a result, the trade balance contributed most negatively to the contraction in the second quarter.

In addition, household consumption fell by 1.6 percent. On the other hand, investments in fixed assets increased by 1.3 percent in Q2 2023 relative to Q1. This was due in part to more investments in transport equipment and machinery. Investments in residential property fell. Public consumption grew by 0.7 percent.

Contraction mostly in trade, accommodation and food services, and transportation and storage

In over half of the sectors, value added (production minus intermediate consumption of energy, materials and services) declined in Q2 2023 compared to Q1. The decline was strongest in mining and quarrying. However, the sectors trade, accommodation and food services, and transportation and storage made the largest negative contributions to economic development. The strongest increase in value added was recorded in the energy sector.

Economic growth in the European Union stagnating

The 0.3-percent contraction in the Netherlands stands out compared to the economic development in neighbouring European countries. In France and Belgium, the economy grew by 0.5 and 0.2 percent respectively in Q2 2023 compared to the previous quarter. The German economy stagnated, with a growth of 0 percent. On average, GDP in the European Union (EU) remained the same as in the previous quarter. The British economy grew by 0.2 percent. However, compared to pre-pandemic Q4 2019, economic recovery was stronger in the Netherlands than in neighbouring countries and across the EU.

The rest of this news release deals with economic development relative to Q2 2022.

GDP 0.3 percent down on Q2 2022

Year on year, GDP contracted by 0.3 percent in Q2 2023. It is the first contraction in over two consecutive years. The contraction in Q2 2023 is mainly due to the decreasing balance of trade. Exports of goods and services dropped a fraction, while imports of goods and services grew by more than 1 percent.

First estimate

The first estimate is published 45 days after the end of a quarter and is conducted based on information available at that moment. It provides an initial picture of the state of the Dutch economy. After the first estimate, new data continue to pour in which are used to make new calculations. The second estimate on economic growth will be released on Friday 22 September. In absolute terms, the adjustment of the second estimate relative to the first estimate averaged nearly 0.1 percentage point over the five-year period 2018-2022, with the two extremes ranging between -0.3 and 0.7 percentage point, both occurring in 2021.

With each new estimate, CBS also determines the new seasonally adjusted figures on previously published quarters. The growth figures for Q1 2023 and the first three quarters of 2022, among others, have been adjusted.