Skip to main content
Home

Main navigation

  • Top stories
  • Health
  • Crime
  • Politics
  • Business
  • Tech
  • Culture
  • Sports
  • Weird
  • 1-1-2
Image
The Zuidas, Amsterdam’s large commercial business district, was virtually abandoned. 19 March 2020
The Zuidas, Amsterdam’s large commercial business district, was virtually abandoned. 19 March 2020 - Credit: Jacqueline Tellinga / Supplied to NL Times
Business
dutch economy
GDP
Coronavirus
social distancing
intelligent lockdown
recession
DNB
unemployment
consumer confidence
spending
government debt
Monday, 8 June 2020 - 13:47
Share this:
  • facebook
  • twitter
  • linkedin
  • whatsapp
  • reddit

Dutch Central Bank warns of harsh recession, high unemployment

The effects of the coronavirus pandemic on the Dutch economy will be felt for years yet to come, according to the new estimate by Dutch central bank DNB. This year the Dutch economy swill shrink by 6.4 percent, almost twice as hard as during the credit crisis of 2009. And unemployment will increase to 4.6 percent of the working population this year and to 7.3 percent next year.

"The real GDP per capita is dropping in one foul swoop to 2015 levels this year," DNB said. The biggest negative effects of the pandemic are expected to show themselves in the second quarter. "This is not only due to the initial shock of the lockdown, but also because of the further consequences for spending."

Declining consumer confidence, more uncertainty and loss of income will result in households, companies and foreign customers reducing their spending considerably, according to the central bank. Private consumption is expected to shrink by 7.6 percent this year, business investment by 13.9 percent, and exports by 10.9 percent.

Inflation will remain low in the coming years, standing at 0.8 percent this year, 1.1 percent in 2021, and 1.5 percent in 2022.

Public finances will show a major turnaround, going from a comfortable surplus last year to a deficit of 6.4 percent of GDP this year. "The government will also be writing red numbers in 2021 and 2022."

DNB expects that the Dutch economy will slowly but surely start to recover in the second half of 2020, resulting in GDP growth of 2.9 percent in 2021 and 2.4 percent in 2022. Unemployment will start to decrease, to 5.7 percent, in 2022, the bank expects.

The DNB warns that there is currently much uncertainty about the further developments of the coronavirus pandemic, as well as the effectiveness and consequences of contact-limiting measures. This means that economic forecasts may change significantly in the coming period.

Follow us:

Latest stories

  • Feyenoord put five goals past Vitesse to take top spot in the Eredivisie; AZ put disappointing week behind them with victory
  • Man killed by metal ball at Highland Games
  • Former Dutch football player Mendes da Silva suspected of money laundering, drug trafficking
  • Animal ambulances struggle with volunteer shortage
  • Young Dutch man suddenly dies during vacation in Italy
  • Police chase of wrong-way driver ends in crash on A27

Top stories

  • Fatal accident near Lekkerkerk could be connected to discovery of two bodies in Zoetermeer
  • Dozens of people fight at Ter Apel reception center, one taken to hospital
  • Jury finds Dutch man Aydin C. guilty of extortion in Amanda Todd case
  • Body found during search for missing woman after boat sinks on Lek
  • Tractors drive wrong way on highway to escape police; more burning hay along A28
  • Amsterdam Canal Parade returns after two years of coronavirus restrictions

© 2012-2022, NL Times, All rights reserved.

Footer menu

  • Privacy
  • Contact
  • Partner content