FX.co ★ Dutch Economy Barely Grows in Q1

In the first quarter of 2025, the Netherlands experienced a modest GDP increase of 0.1% from the previous quarter, following a 0.4% rise in Q4 2024, preliminary data suggests. This marks a continued slowdown in growth over the past year. The increase was primarily supported by a reduced decline in inventories and a 0.5% rise in government consumption, significantly influenced by heightened healthcare spending and public sector employment. Conversely, household consumption declined by 0.2%, with notable decreases in expenditures on food, luxury goods, and transportation. Investment in fixed assets fell by 2.2%, particularly affecting passenger cars and vans, as a result of tax reforms and new environmental regulations. Export levels dropped by 0.8%, driven by a decrease in industrial goods, while imports saw a slight reduction of 0.1%, which helped to narrow the trade surplus. There was growth in most sectors, with the energy sector experiencing a notable increase of 5.8%. Both government and healthcare sectors made positive contributions due to their significant sizes. However, there were downturns in the mining, agriculture, business services, and industrial sectors. On an annual basis, GDP rose by 2.0%.