As a result of the corona crisis, the Dutch economy in 2020 was mainly dominated by unprecedented contraction and growth. But growth was nowhere near strong enough to reverse the contraction, and the last months of the year will not turn the tide. Gross domestic product (GDP) shrank by 4.1 percent in the first three quarters of 2020 compared to the first three quarters of 2019, the Central Bureau of Statistics (CBS) reports Tuesday.
It was mainly the consumer who was responsible for the decline, because they spent less. However, that was not a free choice “by limiting consumption possibilities by government measures, such as closing down catering establishments”. But investments also fell.
Before the outbreak of the COVID-19 pandemic, the Dutch economy was in good shape. Unemployment, for example, was low and public finances were in order. That suddenly changed in March. In the spring and summer, 150,000 unemployed people were added. Young people in particular were the loser.
Companies also suffered, with the hardest blows to aviation. Immediately after the outbreak in March, the number of passengers plummeted and air traffic almost came to a halt in April. In that month there were only 134,000 passengers, compared to 6.9 million a year earlier.
Since then it has become a bit busier at the airports, but it never became more than a third of the normal level.
Public transport saw unprecedented decline
Public transport also suffered an unprecedented decline, partly due to working from home. In April and May 20 percent of the travelers were left. After that it became a bit busier in the bus and train, but normal levels never came into view again.
Other sectors affected were the hospitality industry, with a minus of 33 percent, and service companies, including those in the cultural sector (-23 percent).
The cabinet gave 20 billion euros in corona aid to the business community
In the outbreak in March, the cabinet set up a corona support package. Among other things, wage support, fixed costs allowance and a benefit for self-employed workers were to limit the damage to the economy. Between March and the end of September, the government already spent 20 billion euros on this.
Although that hurt the State’s housekeeping book, it did indeed cause less damage. The number of bankruptcies was historically low. With one week to go in 2020, the bankruptcy counter was at 3,700, 15 percent less than last year.
Holiday industry hit hard, housing market unharmed
Although the holiday industry has been hit hard by the pandemic and the lockdown, part of the industry received a small boost in the summer.
During the summer holidays, the Dutch flocked to bungalows, hotels and campsites in their own country. As a result, accommodations received ‘only’ 8 percent fewer homegrown guests this year. The number of foreign guests did fall, by more than 50 percent.
It is striking that the housing market has completely withdrawn from the malaise. House prices ‘just’ rose by 7.7 percent. In addition, more homes changed hands than last year. In the first eleven months of this year, 206,000 existing owner-occupied homes will change hands, 5.5 percent more than the year before.
– .
