Home » Dutch economy sees slight uptick in 2023 as disposable income rises

Dutch economy sees slight uptick in 2023 as disposable income rises

The Netherlands’ GDP outgrew analysts’ expectations in the final quarter of last year.

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The Netherlands’ economy grew by 0.4% in the three months to December 2023, reversing a three-quarter period of contraction.

New figures published by Statistics Netherlands on Monday said that the growth in GDP surpassed the 0.3% market predictions and was buoyed by a strong rebound in household consumption (1.9% against -0.2% in Q3), further government spending (0.7% against 1.3%).

The news will be welcome to the government and Dutch households alike, as it follows a three-quarter period of economic contraction since the start of the last year.

Nevertheless, the statistical office noted that GDP was down 0.4% compared to 2022, due to the recession that hit the Netherlands during the first nine months of the year. This was, however, revised down from an initial estimate of 0.5%.

It also fell from a 0.8% pace of contraction in the previous three-month period.

Statistics Netherlands said on Monday that, in 2023, real household disposable income rose by 1.4% compared with the previous year, mainly driven by higher wages resulting from increased collective bargaining. 

The office explained that both employees and self-employed individuals saw an increase in income compared with 2022. Total employee compensation grew by 7.7%, with a 1.3% increase in the number of employee jobs and a 6.0% rise in collective pay. 

Self-employment income, particularly in industries like hospitality, specialised business services, real estate rental, trade, and agriculture, experienced an 8.7% increase.