Economic outlook ‘continuing to deteriorate’ in the Netherlands

The economic outlook in the Netherlands was more negative in May 2024 than the previous month, according to the latest edition of the CBS Business Cycle Tracer from Statistics Netherlands (CBS).

According to the May edition of the report, 11 of the 13 indicators performed worse than their long-term trend.

The business cycle indicator is a tool used to determine the position and trajectory of the Dutch economy. It consolidates nearly all significant economic information that Statistics Netherlands publishes on a monthly or quarterly basis.

Consumers ‘slightly more’ negative

It noted that consumers were ‘slightly more’ negative in May than in April, while producers were ‘slightly less’ negative. At the same time, both consumer and producer confidence is below the average of the past twenty years.

The report also notes that in March, households in the Netherlands purchased 0.4% more goods and services compared to the same month the previous year, after adjusting for price changes and shopping patterns.

While there was an increase in the purchase of services, the volume of goods purchased slightly decreased, Statistics Netherlands noted.

Elsewhere, the volume of goods exported, adjusted for working days, was 5.9% lower in March compared to the same month the previous year.

This decline was particularly notable in the export of food and beverages, chemical products, electrical products, and machines.

Bankruptcies and unemployment

In addition, the number of companies that declared bankruptcies rose 6% in April, month on month, while the number of unemployed has increased in the past three months, by an average of around 2,000 per month.

As of April 2024, some 3,75,000 people were unemployed, which is 3.7% of the labour force.

In the first quarter of 2024, the gross domestic product (GDP) of the Netherlands fell by 0.1% compared to the fourth quarter of 2023.

This slight decline in GDP is mainly due to a reduction in the export of goods and increased withdrawal from inventories, Statistics Netherlands noted. The drop in goods exports, meanwhile, is associated with a contraction in the industrial sector.

Read more: Business confidence in the Netherlands ‘slightly less negative’, study finds