Economy grew by 0.2% in Q2, household income up by 2.8%: CBS

The economy grew faster than expected in the second quarter of this year as consumers were able to spend more thanks to rising wages and benefits.

The government statistics agency CBS revised its estimate of GDP growth from 0.1% to 0.2% for the three months to June in its latest assessment, which includes more comprehensive data on construction, business and financial services, and government spending.

Households had 2.8% more available to spend than at the same point in 2024 as a result of wage increases and increases in social security payments. The figures are adjusted for inflation.

The figures also show 28,000 more people were working by the end of the second quarter than in March, which is an increase of 4,000 on the previous estimate.

There was a sharp contrast in fortunes between employees, whose income grew by an average of 5.9%, and the self-employed, whose net earnings rose by just 0.8%.

Collective bargaining agreements drove up wages by 5.3%, while the minimum wage was raised by 6% and income from state benefits increased by 6.2%. Households also paid an extra 3% in taxes and obligatory contributions such as health insurance premiums.

The CBS also found the national mortgage debt grew by €12.6 bn to €911 bn, equivalent to 79.2% of GDP. Mortgage debt has been on a downward trend for the last 15 years, having peaked at 107.9% in the second quarter of 2010, at the start of a price crash that ended in 2013.

The Netherlands has the third highest mortgage debt to GDP ratio in the world, behind Switzerland and Australia.