According to the first quarterly estimate conducted by Statistics Netherlands (CBS), the volume of gross domestic product (GDP) fell by 0.2 percent in Q3 2023 relative to the previous quarter.
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This is the third consecutive quarter with contraction. In Q1 and Q2 2023, GDP fell by 0.5 and 0.4 percent respectively.
The contraction in Q3 can mainly be attributed to declining investments in fixed assets and a decline in inventory changes.
Investments in fixed assets fell by 1.8 percent in Q3 2023 compared to Q2 2023. This is partly due to fewer investments in transport equipment, machinery and buildings.
Furthermore, there was a withdrawal of inventory, versus an accumulation of inventory in Q2. Household consumption remained the same, while public consumption increased by 0.6 percent.
Exports of goods and services fell by 1.6 percent compared to Q2 2023. Exports of both goods and services fell. Imports of goods and services fell more rapidly at 2.3 percent.
The trade balance contributed positively to economic development in Q3.
In just under half of all sectors, value added (production minus intermediate consumption of energy, materials and services) declined in Q3 2023 relative to Q2.
The decline was strongest among energy companies and in culture, sports, recreation and other services.
Just as in the Netherlands, Germany’s GDP fell in Q3 (-0.1 percent).
In Belgium and France, the economy grew by 0.5 and 0.1 percent respectively in Q3 2023 relative to the previous quarter.
GDP rose by 0.1 percent in the European Union (EU)in Q3.
Furthermore, economic growth came to a standstill in the UK.
Relative to Q4 2019, i.e. before the coronavirus pandemic, Dutch economic recovery has been stronger than in neighbouring countries and the EU average, although the gap has become narrower.
Year on year, GDP contracted by 0.6 percent in Q3 2023. The contraction was mainly related to lower exports of goods and services, natural gas inventory and household consumption. ■