The Netherlands experienced a 0.4% growth in GDP in the final quarter of last year, surpassing market predictions and reversing a three-quarter period of contraction. This growth was driven by a strong rebound in household consumption and increased government spending. Despite a recession that affected the Netherlands in the first nine months of the year, this figure was revised down from an initial estimate of 0.5%.
The news of the GDP growth will be welcomed by both the government and Dutch households, as it follows a three-quarter period of economic contraction that began at the start of the previous year. In addition to this, Statistics Netherlands reported that real household disposable income rose by 1.4% compared to the previous year, driven by higher wages resulting from increased collective bargaining. Employees experienced an increase in compensation with a 7.7% rise in employee jobs and a 6.0% increase in collective pay, while self-employment income saw an 8.7% increase across various industries such as hospitality, specialized business services, real estate rental, trade, and agriculture.
