Dutch Economy Barely Grows in Q1

The Netherlands' GDP rose 0.1% in Q1 2025 from the previous quarter, slowing from a 0.4% increase in Q4 2024 and marking a continued deceleration over the past year, preliminary estimates showed.

Growth was driven by a smaller reduction in inventories and a 0.5% rise in government consumption, mainly due to higher healthcare spending and public sector hiring.

However, household consumption fell 0.2%, with lower spending on food, luxury items, and transport.

Fixed asset investment dropped 2.2%, especially in passenger cars and vans, following tax changes and new environmental zone rules.

Exports declined 0.8%, led by industrial goods, while imports dipped just 0.1%, narrowing the trade surplus.

Value added increased in most sectors, with the energy sector up 5.8%.

Government and healthcare also contributed positively due to their size.

However, mining, agriculture, business services, and industry saw declines.

Year-on-year, GDP grew 2.0%.