FX.co ★ Dutch GDP Grows More Than Initially Estimated

In the first quarter of 2025, the Netherlands' gross domestic product (GDP) increased by 0.4% compared to the previous quarter. This figure was revised upwards from an initial estimate of 0.1%. However, this growth was marginally slower than the upwardly revised 0.5% growth witnessed in the last quarter of the previous year. The revision in growth figures can be attributed to a favorable contribution from net trade. Specifically, exports saw a slight rise of 0.1% compared to 0% in the previous quarter, while imports saw a decline of 0.1% compared to a previous fall of 1.2%. There were also positive contributions from household consumption, which grew by 0.4% compared to 0.6% previously, and government spending, which increased by 0.5% from 0.8%. Fixed investment, however, saw a contraction of 2.3%, in contrast to a 2.6% increase in the previous quarter. This decline was due to reductions in both business and household investments, which fell by 2.6%, and a decrease in government investment by 0.4%. On the production side, there was notable growth in the energy sector, which rose by 0.2% from a previous decline of 1.5%, and in water companies, which saw a 1.1% growth compared to a 2% decline. Additionally, trade, transport, and catering sectors grew by 1.1% compared to 0.7% in the previous quarter. On an annual basis, the GDP grew by 2.2%, marking the fastest growth pace since the fourth quarter of 2022 and exceeding the initial estimate of 2%.