May 21, 2024 2:33 pm
Disposable income rise leads to minor improvement in Dutch economy in 2023

In the final quarter of last year, the Netherlands’ GDP surpassed analysts’ expectations by growing by 0.4% in the three months to December 2023. This growth reversed a three-quarter period of contraction and exceeded market predictions of 0.3%. The increase in GDP was driven by a strong rebound in household consumption (1.9% against -0.2% in Q3) and increased government spending (0.7% against 1.3%).

Despite being down 0.4% compared to 2022 due to the recession that affected the Netherlands in the first nine months of the year, 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. Both employees and self-employed individuals experienced an increase in income compared to 2022, with employee compensation growing by 7.7%, including a 1.3% rise in the number of employee jobs and a 6.0% increase in collective pay, while self-employment income saw an impressive increase of 8.7%, especially in industries like hospitality, specialized business services, real estate rental, trade, and agriculture.

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