Dutch economy grows 2.6% in second quarter despite soaring inflation

Growth was spurred by a 7% increase in household consumption relative to the second quarter of 2021, when spending was still constrained by COVID-19 lockdown measures, even though inflation rocketed to around 9%. Investments were 5% higher than a year before, while exports increased almost 6%, official data showed.

Economic growth in the Netherlands surprisingly jumped to 2.6% in the second quarter compared with the previous three months, as household spending boomed despite soaring inflation and companies increased their investments. The strong expansion confounded expectations among economists that growth would remain at roughly the same 0.5% pace seen in the first quarter of 2022.

The pick-up in April-June left the euro zone's fifth-largest economy 5.3% bigger than in the same period a year before. Growth was spurred by a 7% increase in household consumption relative to the second quarter of 2021, when spending was still constrained by COVID-19 lockdown measures, even though inflation rocketed to around 9%.

Investments were 5% higher than a year before, while exports increased almost 6%, official data showed.

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