Netherlands: GDP growth accelerates notably in Q2
GDP growth accelerated to 2.6% on a seasonally-adjusted quarter-on-quarter basis in the second quarter, from 0.5% in the first quarter. Q2’s reading marked the strongest growth since Q2 2021.
Household spending increased 0.9% in the second quarter, which was below the first quarter’s 1.3% expansion. Public spending, meanwhile, rebounded, growing 0.1% in Q2 (Q1: -0.7% s.a. qoq). Fixed investment bounced back, growing 5.2% in Q2, contrasting the 0.3% contraction recorded in the previous quarter.
On the external front, exports of goods and services increased 2.7% on a seasonally-adjusted quarterly basis in the second quarter, which was above the first quarter’s reading. In addition, imports of goods and services bounced back, growing 1.6% in Q2 (Q1: -0.2% s.a. qoq).
On an annual basis, economic growth lost steam, cooling to 5.3% in Q2, compared to the previous quarter’s 6.7% increase. Q2’s reading marked the softest growth since Q1 2021.
Marcel Klok, senior economist at ING, commented:
“The fact that the second-quarter GDP figures were very strong does not mean that the outlook is bright. We maintain that growth will be negative in the coming quarters. Consumers will increasingly be affected by higher prices for energy and food, resulting in cuts to the consumption of other items. Last month we observed the first signs of weakening demand in the value of transactions by ING consumers and the latest figures only seem to confirm that. On top of that, gas prices have risen even further in the past few weeks.”