Economic contraction of 0.7 percent in Q1 2023

All figures in this news release are volume figures. This means that they have been adjusted for price changes.

Growing investments and public consumption

Investments in fixed assets increased by 1.1 percent in Q1 2023 compared to Q4 2022. In particular, more investments were made in construction, passenger cars, aircraft and machinery. Public consumption grew by 0.5 percent, while household consumption remained the same. Households used fewer services, but purchased more goods.

Exports of goods and services fell by 1.8 percent compared to Q4 2022. This is due to a decrease in the export of goods. Exports of services grew slightly. Imports of goods and services declined as well (by 1.3 percent), but less rapidly than exports. On balance, the trade balance made a negative contribution to growth in Q1. Furthermore, natural gas withdrawals from storage facilities were greater. This also contributed to the contraction.

Construction sector grew the fastest

In over half of the sectors, value added (the difference between production and consumption of energy, materials and services) decreased in Q1 2023 compared to Q4 2022. The sharpest decline was seen in mining and quarrying, where less natural gas was extracted. The sector trade, accommodation and food services, transport and storage, however, contributed the most to contraction in Q1. The value added of the construction sector increased the most of all sectors, by 2.4 percent. Construction also made the largest positive contribution to the economic development.

European Union economy grew by 0.3 percent

The 0.7-percent contraction in the Netherlands stands out compared to the economic development in neighbouring European countries. The economies of Belgium and France grew by 0.4 and 0.2 percent, respectively. The economy of the United Kingdom grew by 0.1 percent, while the German economy stagnated at 0-percent growth. Average growth in the European Union (EU) amounted to 0.3 percent. Compared to the fourth quarter of 2019, the recovery of the Dutch economy is stronger than that of neighbouring countries and the EU.

The rest of this news release deals with economic development relative to Q1 2022.

GDP 1.9 percent up on Q1 2022

The economy grew by 1.9 percent in Q1 2023 relative to Q1 2022. This was mainly due to more investments and higher household and public consumption. The trade balance made a negative contribution.

In the first quarter of 2022, a hard lockdown was in place until 25 January. Even after that, for example, the sectors accommodation and food services and recreation and culture were still affected by a number of coronavirus measures, such as COVID admission tickets and limited opening hours.

First estimate

The first estimate is published 45 days after the end of a quarter and is conducted based on information available at that moment. It provides an initial picture of the state of the Dutch economy. After the first estimate, new data continue to pour in which are used to make new calculations. The second estimate on economic growth will be released on Friday 23 June. In absolute terms, the adjustment of the second estimate relative to the first estimate averaged nearly 0.1 percentage point over the five-year period 2018-2022, with the two extremes ranging between -0.3 and 0.7 percentage point, both occurring in 2021.

With each new estimate, CBS also determines the new seasonally adjusted figures on previously published quarters. The growth figures, including those for the four quarters of 2022, have been adjusted.