The Dutch economy shrank by 1.7 per cent in the first quarter compared to the previous quarter, initial figures from the Central Bureau of Statistics (CBS). This is the largest contraction since the 2009 economic crisis. The contraction marks the end of 23 quarters (almost six years) of economic growth in the Netherlands.
The red figures are mainly explained by a sharp drop in consumer spending, according to CBS. Dutch households spent 2.7 per cent less in the first three months of this year than in the previous quarter. That is the biggest drop since 1987, the year CBS started measuring.
The impact of the COVID-19 outbreak and measures is evident in the figures, as the economy was still growing in January and February. Also, households then still spent more than at the end of last year.
This came to an end in March. Then many people started working from home, catering establishments had to close their doors, barber shops closed and shopping streets became empty. As a result, consumer spending fell 6.7 per cent in March from a year earlier, making it the biggest drop ever measured, according to the statistics agency.
