Disposable income rises most in 20 years as Dutch economy posts stronger growth
The Dutch economy grew more in the second quarter than initial figures showed and that is also reflected in household incomes, which saw the strongest growth since the second quarter of 2002, Statistics Netherlands reported
In the second quarter of this year, Dutch households' disposable income was 3.1 percent higher than the same quarter last year. According to the stats office, the increase was mainly due to higher wages, but more social assistance benefits and student financing also played a role.
Total employee compensation grew by 5.1 percent. The number of jobs was 3.2 percent higher and the number of worked hours increased 7.2 percent compared to the same quarter last year. The collective bargaining wage increase was 2.2 percent. And the income of self-employed increased by a massive 9.7 percent.
Against the higher income, households also paid 6 percent more in taxes and social security contributions. Statistics Netherlands also noted that mortgage debt increased considerably, by 8.7 billion euros compared to the previous quarter. This likely has to do with the ever rising home prices.
Economic growth in the second quarter amounted to 3.8 percent compared to the previous quarter, higher than the 3.1 percent the stats office reported based on provisional figures in August. The economic growth between April and June was boosted by coronavirus measures being relaxed and households spending more. Corporate and government spending also contributed to the growth.
Compared to the second quarter of 2020, the Dutch economy grew by 10.4 percent.