Record decline economy second quarter

The Dutch economy shrank by 8.5% in the second quarter compared to the previous quarter. The decline was smaller than expected, according to ABN AMRO. The fall was also significantly less than the average decline in the eurozone of 12%.

Unprecedented drop in spending

Gross Domestic Product (GDP) contracted by 8.5% in the second quarter compared to the previous quarter. This was by far the strongest decline ever recorded by Statistics Netherlands (CBS). All spending components showed a huge decline. For instance, private consumption shrank by more than 10% compared to the previous quarter. Investment and exports showed a similar decline. 

Economic shrinkage smaller than expected

ABN AMRO expects the economy to return to growth in the third quarter as some restrictive measures were eased in the second half of last quarter. Also abroad. From the very low level of the second quarter onwards, this growth could look relatively strong. In the Netherlands, the percentage recovery in the third quarter will probably be lower than the average in the eurozone, as the decline in the second quarter was much smaller in the Netherlands.

abnamro.nl