Dutch economy recovering from Covid crisis faster expected: Rabobank

The Dutch economy is recovering from the coronavirus crisis faster than previously thought, Rabobank economists believe. The bank now predicts that the economy will grow by 3.8 percent this year, up from its previous expectation of 2.3 percent growth for 2021, ANP reports.

Rabobank raised its growth forecast following the recent lockdown easing. In addition, the Dutch economy turned out to be more resilient than previously thought, the bank stated.

According to the bank, the economy will have fully recovered from the losses caused by the crisis in the third quarter of this year. That is a faster recovery rate than in other European countries, the bank also noted.

For next year, Rabobank forecasts 3.7 percent growth instead of previous estimate of 3.5 percent. "But not all Dutch sectors will recover this year and some not even next year, such as the catering industry."

Transaction data already indicated an increase in private consumption in March, April, and May, according to Rabobank. “In these months, relaxation was implemented for contact professions such as hairdressers, shops and the hospitality sector. We expect this recovery to continue as the economy opens up further," said Hugo Erken, head of Dutch economy at RaboResearch.