The Dutch economy shrank 0.7% on a quarterly basis in the first quarter of 2023, as exports dropped and consumer spending stagnated, a first estimate by Dutch statistics office CBS showed on Tuesday.

Economists polled by Refinitiv had on average predicted a stagnation of the euro zone's fifth-largest economy during the first three months, after growth of 0.4% in the fourth quarter of 2022.

Exports were almost 2% lower than in the final three months of last year, while surging inflation put the brakes on consumer spending, the CBS said.

The Dutch economy grew almost 5% per year in 2021 and 2022 as it quickly recovered from a COVID-19 slump.

Growth is expected to slow to around 1.5% this year and next, government policy adviser CPB said in March. (Reporting by Bart Meijer Editing by Bernadette Baum)