The Dutch economy has slipped into a technical recession, contracting by 0.3 percent in this year’s second quarter after shrinking 0.4 percent in the first, according to Statistics Netherland.
A technical recession is defined as two consecutive quarters of economic contraction.
The Eurozone’s fifth-largest economy dwindled as consumers slowed spending, exports declined, and ongoing inflation lifted energy and food costs throughout the region.
Consumer spending dropped 1.6 percent; the country exported 0.7 percent less than in the year’s first three months.
Dutch inflation peaked at 14.5 percent in September 2022 and slowed to 6 percent in this year’s second quarter. The Eurozone’s overall inflation rate in July was 5.3 percent.
TREND FORECAST: Following the summer season, we forecast much of Europe will begin its descent into Dragflation: declining economic growth and rising inflation. On the inflation front, should Europe and the United States continue to fund the Ukraine War, there is a strong probability that the cost of sanctions imposed upon Russia will raise the price of gas and oil.