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Dutch economy sees slight uptick in 2023 as disposable income rises

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The Netherlands’ GDP outgrew analysts’ expectations within the remaining quarter of final yr.

The Netherlands’ economic system grew by 0.4% within the three months to December 2023, reversing a three-quarter interval of contraction.

New figures printed by Statistics Netherlands on Monday mentioned that the expansion in GDP surpassed the 0.3% market predictions and was buoyed by a robust rebound in family consumption (1.9% towards -0.2% in Q3), additional authorities spending (0.7% towards 1.3%).

The information can be welcome to the federal government and Dutch households alike, because it follows a three-quarter interval of financial contraction for the reason that begin of the final yr.

Nonetheless, the statistical workplace famous that GDP was down 0.4% in comparison with 2022, as a result of recession that hit the Netherlands throughout the first 9 months of the yr. This was, nonetheless, revised down from an preliminary estimate of 0.5%.

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It additionally fell from a 0.8% tempo of contraction within the earlier three-month interval.

Statistics Netherlands mentioned on Monday that, in 2023, actual family disposable earnings rose by 1.4% in contrast with the earlier yr, primarily pushed by increased wages ensuing from elevated collective bargaining. 

The workplace defined that each staff and self-employed people noticed a rise in earnings in contrast with 2022. Whole worker compensation grew by 7.7%, with a 1.3% enhance within the variety of worker jobs and a 6.0% rise in collective pay. 

Self-employment earnings, notably in industries like hospitality, specialised enterprise providers, actual property rental, commerce, and agriculture, skilled an 8.7% enhance.

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