Dutch economy shrinks 8.5 pct in second quarter

Source: Xinhua | 2020-08-15

Based on first calculations, the gross domestic product (GDP) in the Netherlands decreased by 8.5 percent in the second quarter of 2020 compared to the previous quarter, the Dutch Central Bureau of Statistics (CBS) said on Friday.

Such a shrinkage has never been measured by the CBS before. The quarterly figures for economic growth are available from 1987 and the largest quarter-on-quarter decline until the second quarter of 2020 was 3.6 percent registered in the first quarter of 2009 at the time of the financial crisis.

"The economic contraction of 8.5 percent is severe," Minister of Social Affairs and Employment Wouter Koolmees told national broadcaster NOS.

"We saw it coming. The shrinkage is huge," he said, "but it could have been worse."

More than half of the fall in GDP in the second quarter can be attributed to the sharp decrease in household consumption following the novel coronavirus crisis. Investments and trade also declined sharply.

Households spent 10.4 percent less in the second quarter than the previous quarter. Investments also declined by 12.4 percent. Exports and imports of goods and services decreased by 9.8 and 8.3 percent respectively.