Dutch Q1 GDP Growth Revised to 0.2%

The Dutch economy expanded by 0.4% quarter-on-quarter in Q2 2026, accelerating slightly from the 0.3% growth recorded in Q1 and exceeding economists’ expectations of a 0.2% increase. The stronger-than-expected performance was driven mainly by domestic demand. Household spending rose by 0.5%, supported by higher purchases of passenger cars, food, beverages and tobacco, while business investment also increased by 0.5%, led by greater spending on electronic equipment despite weaker construction investment. Government consumption also contributed, rising 0.4% due to higher healthcare expenditure and public sector wages. External trade provided a small drag on growth, as exports increased by 1.2%, while imports rose even faster at 1.4%. On the production side, the strongest growth came from the trade, accommodation and food services, transportation and storage sectors, while manufacturing also performed well, particularly the machinery and petroleum industries.

The Dutch economy expanded by 0.2% quarter-on-quarter in Q1 2026, revised up from an initial estimate of 0.1% but slowing from 0.4% growth in Q4, marking the weakest expansion in a year. The slowdown was mainly driven by weaker external demand, as exports of goods and services fell 0.2% after rising 0.7% in the previous quarter, while imports edged up 0.1% for a second consecutive quarter. Meanwhile, domestic demand remained resilient, with national final expenditure increasing 0.5% after a 0.1% decline in Q4. Household consumption rose 0.3% after stagnating in the previous quarter, government spending increased 0.7%, and gross fixed capital formation accelerated to 0.7% from 0.1%, supported by stronger investment by businesses, households, and the government. Changes in inventories remained unchanged at -0.2% of GDP. On an annual basis, GDP grew 1.4%, revised up from the preliminary estimate of 1.2% but slowing from 1.8% in the prior period.

The Dutch economy grew just 0.1% quarter-on-quarter in Q1 2026, following a downwardly revised 0.4% expansion Q4 2025 and below the expected 0.2%, preliminary estimates showed. Growth was supported by public consumption, investment, and inventories, while net exports weighed. Fixed investment rose 0.7%, driven by aircraft and machinery, while public consumption increased 0.5% on higher healthcare and wage spending. Household consumption was unchanged. On the external side, exports of goods and services fell 0.6% as goods exports dropped 1.2%, particularly machinery and transport equipment, while services exports rose 0.8%. Imports were flat. On an annual basis, the GDP rose 1.2%. Public consumption (+2.7%), household consumption (+0.6%), and investment (+1.5%) all increased, but stronger imports (2.3%) than exports (1.4%) made net trade a drag. By sector, the public sector, trade, accommodation and food services, and transportation and storage were the largest positive contributors.