Dutch economy outperforms expectations in the second quarter

The Dutch economy recorded remarkable growth exceeding expectations in the second quarter, bringing upward revisions to year-end forecasts to the agenda.

Economic Growth and Performance

The Dutch economy managed to exceed expectations with its performance in the second quarter. This recorded growth occurred at a level very close to the strongest momentum captured since the third quarter of 2024.

Following the growth data, upward revisions to year-end forecasts began to emerge in economic circles.

Exports and Public Spending

Following the growth in the second quarter, the economic composition changed in the third quarter. During this period, the biggest supporter of growth was net exports with a contribution of 0.7 percentage points.

Total exports increased by 0.8 percent, while the increase rate in goods exports was recorded as 1.7 percent. Public spending surprised with an increase of 1.1 percent and ranked among the main items supporting growth.

Household Consumption and Investments

Household consumption continued to maintain its momentum with a 0.3 percent increase, but moved away from being the main driving force of growth.

The only area losing momentum in growth was investments. Fixed capital investments contracted by 1.6 percent in the third quarter.

Contraction in Investments

The volatility experienced in military equipment deliveries was effective in the contraction of fixed capital investments. Additionally, low capacity utilization in the manufacturing sector played a role in this decline.

The annual growth rate continued to be maintained in a balanced manner at the level of 1.6 percent.