GDP shrank by 0.3% in Q2 of 2023 compared to Q1 of the same year. The economic downturn was also observed in Q1, which means that the country is now officially in recession, according to data released by the Dutch Central Bureau of Statistics.
The Netherlands is currently having to contend with economic pain alongside political turmoil caused by the resignation of longtime Prime Minister Mark Rutte.
Behind the downturn in the first half of 2023 are labor shortages, weak demand from European trading partners, and a sharp rise in interest rates as the European Central Bank seeks to curb inflation.
“Stability and predictability are now needed, so we have to be careful not to disrupt the economy and also to increase taxes,” Economic Affairs Minister Micky Adriaansens told the Dutch press agency ANP.