Agricultural sector shrinks less than others

The gross domestic product (GDP) of the agricultural sector did not fall much compared to other sectors in the second quarter of this year. In the first quarter, added value even rose a few percent.

As one of the few sectors, the agricultural sector hardly shrank in the first half of 2020. Just like at the time of the financial crisis, the agricultural sector appears to be less sensitive to the economic cycle. People have to continue to eat anyway, is the statement from Statistics Netherlands, which is as simple as it is sufficient.

Largest shrinkage ever measured
Sectors that realized even more added value than last year are real estate trading and leasing, financial services and energy companies. But these are exceptions to the rule that economic activity has declined sharply due to the corona crisis.

According to the first calculations by Statistics Netherlands, based on now available data, gross domestic product (GDP) fell by 2020% in the second quarter of 8,5 compared to the previous quarter. Such a contraction has never been measured by Statistics Netherlands. The agricultural sector recorded a contraction of 2,4% in the second quarter of 2020 compared to the first.

Shrinkage of the healthcare sector
More than half of the GDP decline in the second quarter can be attributed to the sharp fall in household consumption. Culture, recreation, catering and mineral extraction are the sectors that have contracted the hardest.

The contraction in health care is also unprecedented and can mainly be attributed to the fact that fewer health and care services have been provided on balance due to the corona crisis. In hospitals, many appointments and operations were postponed or canceled in the second quarter.

Even more shrinkage outside the Netherlands
Investments and the trade balance also fell sharply. The contraction in the Netherlands was smaller than the average in the eurozone and in neighboring countries such as Germany, the United Kingdom and Belgium.

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