Dutch economy to shrink 2% this quarter: ING

The Dutch economy will shrink by 2 percent this quarter compared to the third quarter as a result of the second coronavirus lockdown, economists at ING expect. That means that 2020 will end with the economy being about 95 percent the size it was before the crisis. Next year the economy will grow by 2.6 percent, bringing it back to 99 percent of what it was before the pandemic hit, ANP reports.

The economic dip due to the second wave of coronavirus infections will be less severe than in the first lockdown in March, the ING economists expect. This is due to less strict contact restrictions and the fact that schools remained open, resulting in the parents of young children being able to be more productive.

Expectations in commercial services - catering, museums, gambling, and travel - are still grim, the bank said. Petrol stations are also less optimistic, because people are again instructed to work from home. Entrepreneurs in industry and retail also became more pessimistic this quarter, while optimism increased somewhat in construction.