Netherlands Enters Recession: Q2 2025 GDP Shrinks by 0.3%

The Dutch economy has officially entered a recession. As per the data shared by Statistics Netherlands, the Netherlands’ economy, the fifth largest in the Eurozone, is experiencing a downturn. The key indicator? Dutch GDP contracted in the second quarter of 2025, declining by -0.3% compared to the first quarter.

Two Consecutive Quarters of Negative Growth

This negative growth isn't an isolated incident. This follows a contraction in the first three months of the year. The generally accepted definition of a recession involves two consecutive quarters of economic contraction, and the Netherlands now meets this criterion.

Technical Recession Confirmed: 0.3% Decline in Q2 2025

The Netherlands followed its neighbour, Germany, into a technical recession in the second quarter of 2025, with GDP shrinking by 0.3%, as per the initial estimate published by Statistics. This marks a significant shift in the Dutch economic landscape.

Statistics Netherlands Data Confirms Recession

The Dutch economy officially entered into a recession after posting two straight falls in quarterly gross domestic product figures. GDP volume fell by 0.4 percent in the first quarter of 2025, and then by 0.3% in the second quarter. These figures underscore the severity of the economic slowdown and raise concerns about future economic performance.

What Does a Recession Mean for the Netherlands?

The implications of this recession are far-reaching, potentially impacting employment rates, investment, and consumer spending. Economists will be closely monitoring developments to assess the depth and duration of this economic downturn. Stay tuned for further updates and analysis on the evolving economic situation in the Netherlands.