Dutch economy grew 4.5% last year; Consumer spending at record high

The Dutch economy grew 4.5 percent last year, mainly thanks to more household consumption, Statistics Netherlands (CBS) reported. With 2021’s growth of 4.9 percent, “the economy has never grown so fast for two years in a row this century,” CBS said.

The Dutch economy was boosted by the last coronavirus restrictions disappearing in March 2022 and dampened by Russia invading Ukraine in February. Inflation rose rapidly due to the war, but “that did not prevent households from spending more than ever, adjusted for price changes,” the stats office said.

More than half of last year’s economic growth was due to households’ willingness to spend money on goods and services. “Consumers had enough money to buy more despite the higher prices.” Wages did not rise as much as inflation, but Netherlands residents worked more. Last year, 441,000 jobs were added to the job market, and the share of the Dutch population with paid work reached record heights.

Adjusted for price changes, consumers spent 6.6 more last year than the year before. “That is a historically large increase,” CBS said. Spending on services like catering, recreation, and culture increased significantly, partly because coronavirus restrictions had these businesses closed for large parts of 2021.

The added value of the culture, sports, recreation, and other services sector grew 34 percent last year. However, the added value of this sector was still slightly below its pre-pandemic levels last year.

The Dutch economy achieved more growth than in neighboring countries and the European Union average last year, after recording lower growth in 2021.