The measures taken to curb the spread of coronavirus Covid-19 will result in the Dutch economy shrinking 3.5 percent this year, ABN Amro calculated on the assumption that the current restrictions will last about two months. Unemployment will be around 4.5 percent by this summer, compared to 2.9 percent in February, according to the bank.
The coronavirus will definitely cause a recession in the Netherlands, according to a report central planning office CPB released on Thursday. The CPB calculated four scenarios depending on how long the measures to curb the spread of Covid-19 will remain in place, and all four scenarios resulted in a recession. In the best case scenario, the Dutch economy will shrink 1.2 percent this year, in the worst case it will shrink 7.7 percent. In three of the four scenarios, the shrink will be greater than in the 2008/2009 financial crisis, CPB said.
The outbreak of the coronavirus will almost certainly result in a recession for the Dutch economy, according to Pieter Hasekamp, director of central planning office CPB. "We are still calculating, but a recession is almost inevitable," he said in an interview with the Telegraaf.
The Covid-19 crisis will result in the Dutch economy shrinking by 0.2 percent this year, according to economists from Rabobank. This is on the assumption that the crisis will be brought under control between April and July, and some economic recovery can occur in the second half of the year, they said in a report, NU.nl reports.
A total of 959 people in the Netherlands have tested positive for the coronavirus strain which causes Covid-19, figures released on Saturday by public health agency RIVM show. It was an increase of 155, or 16 percent, over the 804 positive tests reported on Friday. That day set the country's benchmark for the largest single-day increase in patients at 190, and the smaller increase on Saturday is likely because of a policy shift about who gets tested in the Netherlands.
Klaas Knot, director of Dutch central bank DNB, does not rule out the possibility that the coronavirus pandemic will bring the Dutch economy into a recession. "You don't need a very serious corona scenario, on top of what we expect now, for our economy to also come close to a recession," he said to Nieuwsuur after a meeting at the European Central Bank (ECB).
The Dutch economy is expected to grow by 1.4 percent this year and 1.6 percent next year, according to the latest estimations by central planning office CPB. The expected growth is slightly higher than previous estimations in December. The CPB warned that the effects of the coronavirus outbreak on the economy are still very uncertain, but the virus will negatively impact economic growth if it is not quickly gotten under control.
The Dutch economy grew by 1.7 percent in 2019 - the lowest growth since 2014, according to figures Statistics Netherlands released on Thursday. Economic growth last year was boosted by more consumer spending and investments by companies. The trade-balance had a negative effect on the growth, the stats office said.
In 2018 the economy grew 2.6 percent. The growth is declining, "but if you compare it with the countries around us, we did very well," Statistics Netherlands chief economist Peter Hein van Mulligen said to NU.nl.
Last year the Dutch transport sector emitted 26 billion kilograms of CO2 equivalents of greenhouse gases, almost as much as in 2012. Aviation was responsible for 49 percent of those emissions, water transport for 26 percent, and road transport for 21 percent, according to figures Statistics Netherlands released on Wednesday.
The aging population of the Netherlands will result in the average growth of the Dutch economy falling to 1.1 percent between 2022 and 2025, central planning office CPB said in an estimate on Monday.
In the period 2022 to 2025, the population aged between 15 and 74 will decrease for the first time, the CPB expects. That will mean fewer and fewer new people entering the labor market, which will put economic growth under pressure. Purchasing power will also stop increasing in that period, according to the CPB.
Strict climate measures will have much greater consequences on the Dutch economy than politicians realize, according to employers' organization VNO-NCW and MKB Nederland. These measures may even trigger an economic crisis, or what they call a "self-organized recession", the organizations said to De Telegraaf.
The flourishing Dutch economy has a down side, and that is that workplaces in the Netherlands are becoming less safe, according to trade union CNV. A quarter of Dutch employees in high-risk professions have fallen victim to an industrial accident at least once, according to a study Panelwizard performed among nearly 1,100 employees on behalf of the union.
The Netherlands surpassed Switzerland and Germany as the most competitive economy in Europe. Worldwide, the Netherlands is in fourth place, after Singapore, the United States and Hong Kong, according to a comparison by the World Economic Forum (WEF).
According to the WEF researchers, "an entrepreneurial culture, flat organizations and growth of innovative companies" have made the Dutch economy much more agile.
The Dutch economy is strong and the outlook for next year remains positive, but risks are looming from abroad, Dutch King Willem-Alexander said in his Budget Day speech for 2019.
"A strong economy is needed to further build on a strong Netherlands", King Willem-Alexander started his speech on Tuesday. The outlook for next year remains, positive, but the reality is that the growth will level out in the coming years. "Our economy is sensitive to international developments such as trade wars and the Brexit", the King warned.
A decade after the biggest economic crisis since the 1930s hit the Netherlands, most Dutch have recovered and are satisfied with their lives. But that does not apply to a group of around 400 thousand people who are still struggling, social and cultural planning office SCP said in its report The social state of the Netherlands. The SCP looked at the state of the Netherlands in the period 2008 to 2018, NOS reports.
International students bring considerably more money into the Dutch economy than they cost it, according to a study by central planning office CPB. Foreign students from non-European Union countries in particular generate a lot of money for the Dutch treasury, NU.nl reports.
Tourists spent a massive 87.5 billion euros in the Netherlands last year, Statistics Netherlands reported on Wednesday. The number of jobs in the tourism sector increased by 27 thousand to 791 thousand jobs.
Compared to 2017, tourist spending increased by 6.4 percent last year in absolute numbers. Adjusted for price changes, the increase was 4.1 percent.
The Dutch government plans to set up a fund containing billions of euros as a buffer to guarantee economic growth in the Netherlands, the Telegraaf reports based on sources. The amount to go in this fund has not yet been decided, but according to the newspaper, the amount of 50 billion euros is circulating on the Binnenhof.
Economic growth in the Netherlands will decline to 1.4 percent growth next year, according to the August Estimation by central planning office CPB. The declining growth is due to "bad wind from abroad", the CPB said, NU.nl reports.
In the second quarter of this year, the Dutch economy grew by 0.5 percent compared to the first quarter - the same growth as in the previous two quarters. Compared to the second quarter of last year, the Dutch economy grew by 1.8 percent adjusted for the number of working days, Statistics Netherlands reported on Wednesday. The economic growth in the second quarter was higher than expected.
The number of small- and medium-sized enterprises (SMEs) in the Netherlands increased by some 44 percent over the past decade. The increase was almost entirely carried by micro businesses, Statistics Netherlands reported on Thursday.
"A moderation in growth or a limited decline in aviation" will not hurt the Dutch economy, but will benefit the environment, research agency CE Delft concluded in a study commissioned by Natuur en Milieu. The researchers found that there is no scientific basis for five important arguments often used as reasons not to limit growth in the aviation sector, NOS reports.
In the second half of the 18th century the Netherlands had one of the most developed economies in the world, and slavery played an important role in this, according to research by the International Institute of Social History in Amsterdam. In 1770, 5.2 percent of the Netherlands' gross domestic product was based on slavery, the researchers concluded, NOS reports.
The Dutch economy grew by 0.5 percent in the first quarter of 2019, the same growth as in the last quarter of 2018, Statistics Netherlands reported on Tuesday. Compared to the first quarter of 2018, the economy grew by 1.7 percent.
Adjusted for the number of days - the first quarter of 2019 had one day less than the first quarter of 2018 - economic growth amounted to 1.9 percent. In the first quarter of last year, the economic growth stood at 2.2 percent compared to a year earlier.