The Dutch economy shrank by 0.2% in the final quarter of last year, meaning the Netherlands is now back in recession, according to initial estimates released by the national statistics office CBS on Thursday.

Year-on-year, the economy contracted 0.9% in the final quarter, the CBS said. In the third quarter, the economy shrank by 1% year-on-year. Two successive contractions means the country is officially in recession.

Household spending was down 3.2% in the final quarter, compared with the year earlier period. Investments were down 5.2% but exports provided some relief, showing 3.2% growth.

Earlier this week, the CBS said inflation has now reached 3%, its highest level in four years.

Reforms

Economic affairs minister Henk Kamp said in a reaction to the new figures that the cabinet is strengthening the Dutch economy through reform.

‘The economy is contracting, people are worried about their jobs, their pensions and the value of their home,’ Kamp said. ‘The only way to boost confidence is to strengthen the economy through reforms and get the government’s finances in order.’

The minister also stressed that the Dutch jobless rate is among the lowest in the world.

CBS estimates in English