Economy Quarterly Report Q1 2024

The Netherlands is experiencing a mix of positive and negative economic indicators. Household consumption, driven by increased wages, is a positive sign for economic growth. However, investments, exports, and manufacturing are underperforming compared to the previous year.

In the Eurozone, GDP growth is expected to be positive but subdued in most countries throughout 2024. Several uncertainties are weighing on Eurozone economies, including political elections in multiple countries and geopolitical tensions surrounding the Suez Canal, Ukraine, and the Middle East.

On the consumer side, there has been a seventh consecutive month of rising consumer confidence. Consumers are more optimistic about the current state of the economy and their own financial situations. They also display a greater willingness to make purchases.

In contrast, producer confidence continues to decline. Producers are less confident about their own production in the coming months as well as their stocks. Most production branches have a negative outlook, with timber and construction materials industries being the most pessimistic. Only the paper and printing sector indicates positive producer confidence. The overall negative sentiment is justified by a 5.5% drop in industrial production in the Netherlands in January 2024 compared to the previous year.