Dutch Economy Springs Leak, Faces Stagnation[/h][h=2]The Netherlands Is in Its Third Recession Since 2009
By [*]MAARTEN VAN TARTWIJK and [*]LÁRA HILMARSDÓTTIR[/LIST]AMSTERDAM—The Albert Cuyp market here, famous for its offerings of cheap clothing and exotic foods, is one of the busiest in the Netherlands.
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Associated PressShopkeepers at Amsterdam's Albert Cuyp market, shown, in March, are grappling with dwindling sales.
But while it still attracts plenty of shoppers, customers are increasingly wary of spending their money there, said Nicolas Steur, a 50-year-old fishmonger. Revenue at his stall, where he sells fresh haddock, raw herring and other seafood, has fallen by 20% compared with four years ago.
"We still have about the same amount of customers," Mr. Steur said. "But they spend less money. People are cutting down on their expenses."
The comments contrast sharply with the image of the Netherlands, one of the wealthiest European Union countries. Thanks to its top credit rating, competitive economy and relatively low public-debt levels, the nation is seen as one of the "core" euro-zone countries.
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Yet, beneath the surface, there is a different story. The Netherlands is in its third recession since 2009 and faces a prolonged period of economic stagnation, according to the Dutch central bank.
Data released late last week highlight the problem. Unemployment rose to 6.8% in June, statistics bureau CBS said, using a definition of the International Labour Organization.
Consumer sentiment, which has been depressed for years, deteriorated again in July, it said.
CBS said on Friday that household spending fell 1.8% on an annual basis in May and has declined for two years. Car sales in particular were down, but sales of clothing, home furnishings and domestic appliances and household products were also sharply lower.
The Netherlands' economic woes are largely homegrown. Since house prices started falling in 2008, households have cut spending to pay down mortgages.
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