Dutch economy probably contracted slightly due to omikron

Photo: ANP

The Dutch economy shrank slightly in the last quarter of last year under pressure from the omikron wave and the new lockdown. At least that is the average expectation of economists polled by the Bloomberg news agency. On Tuesday, the Central Bureau of Statistics (CBS) will provide an initial estimate of how the Dutch economy has performed in the past period.

The experts assume a contraction of the gross domestic product (GDP) of 0.3 percent compared to the previous quarter. The Netherlands came back with strict corona measures in November and in December in particular. As a result, the catering and non-essential shops had to close again. This is likely to have weighed on consumer spending. Due to recent high inflation, many people don’t think it’s a good time to make major expenditures anyway.

With the figure from the analysts’ forecast, the Netherlands would follow large neighboring Germany and Austria. Unlike France and Spain, for example, those countries also experienced an economic decline last quarter, as it turned out. This was not only due to new corona measures, but also to shortages of, for example, computer chips and raw materials. This particularly affected the German car industry.

According to the latest figures, the Netherlands still experienced 2.1 percent growth in the third quarter of last year. Then the economy was larger than before the pandemic for the first time since the virus outbreak. This was mainly due to households that had started to spend more. For example, more was spent on clothing. The government also spent more, among other things on corona tests and vaccination by the GGD.

Dutch economy probably contracted slightly due to omikron
Source link Dutch economy probably contracted slightly due to omikron

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