Second Covid recession over: Dutch economy growing again

After half a year of economic contraction, the Dutch economy grew by 3.1 percent in the second quarter of this year, Statistics Netherlands said on Tuesday based on the currently available figures. This shows that the second coronavirus recession has come to an end.

The Dutch economy is not back to pre-pandemic levels yet, but with coronavirus lockdown measure relaxing, it seems to be heading that way. In the second quarter, the hospitality and catering industry were gradually allowed to reopen, curfew was lifted, and cultural institutions could allow guests again. 

That resulted in an increase in household spending, by 5.7 percent compared to the first quarter. Government consumption also increased by 2.6 percent. And the exports and imports of goods and services increased by 4 and 2.6 percent respectively. All these contributed to the economic growth. On the downside, investments fell by 1.8 percent.

Compared to the second quarter of 2020, the Dutch economy was 9.7 percent higher in the same quarter this year. This exceptional growth is mainly the result of the coronavirus pandemic. In quarter two of 2020, the Netherlands was in the midst of its first hard coronavirus lockdown. The economy bounced back in the following period, retracted again in subsequent lockdowns, and is now on the rise again.

Compared to pre-pandemic 2019, the economy was still 0.4 percent smaller in the second quarter of 2021.