AMSTERDAM (Reuters) – The Dutch economy shrank 0.2% on a quarterly basis in the third quarter as rising interest rates slowed down the housing market and surging inflation put a brake on consumption, a first estimate released on Tuesday showed.
The euro zone’s fifth largest economy performed worse than expected in the July-September period, as economists in a Reuters poll on average had predicted 0.0% growth.
Investments fell 1.7% as rising mortgage rates cooled the years-long boom in the Dutch property market, while consumption growth slowed to 0.1%.
The Dutch economy was 3.1% larger than in the third quarter of 2021, when consumption was still limited by COVID-19 restrictions.
Economic growth is expected to drop to 1.5% next year from an estimated 4.6% in 2022, the government’s economic advisory board said in September, as ballooning energy bills and the rising costs of living further limit consumer spending.
(Reporting by Bart Meijer; Editing by Alison Williams)