An early estimate released by the national statistics agency on Wednesday indicated that the Dutch economy shrank for the second straight quarter, indicating a "mild recession" in the country.

According to a statement from the Central Bureau of Statistics (CBS), the decline during the second quarter was 0.3 percent after the first three months of 2023 showed a contraction of 0.4 percent. CBS reported that despite higher spending in the culture and leisure sectors, the Dutch "mostly bought less furniture and clothing" in the third quarter, which contributed significantly to the contraction.

Another important contributor to the slowdown was international commerce, which saw a rise in imports and a decline in exports, especially from the Dutch chemical sector.

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On Wednesday, and in an online presentation, the chief economist for CBS Peter Hein van Mulligen said this means "that the Netherlands is in recession."

According to the data, the Dutch economy appears to have stalled for a fourth straight quarter.  The lack of growth has not yet resulted in a downturn in the labor market, van Mulligen said. 

The Dutch economy "recovered more quickly and strongly" than the rest of Europe following the slump brought on by the Covid-19 outbreak, but for the past year, it has gone the other way, he added.

The Netherlands' decrease of 0.3 percent contrasts with the rise of 0.5 and 0.2 percent in France and Belgium, respectively, in the second quarter.

It is worth noting that same month last year, CBS reported that inflation in the Netherlands reached 10.3 percent in July for the first time since 1975.

Prices increased by 8.6 percent in last year's June, as per the Bureau. Meanwhile, inflationary pressures are being driven by rising prices for energy, food, not to mention rent.

In July, energy prices increased by 108 percent compared to the same month the year before, while food prices increased by 12.3 percent. Grain, dairy products, sugar, and ice cream are the food products with the greatest price increases.

All this happened following a few months when the US, the EU, and its allies initiated a series of sanctions packages against Russia.