News CBS
Economy shrinks, but higher agricultural exports
The economy shrank by 2021% in the first quarter of 0,5 compared to the last quarter of 2020, CBS reports. This was due to a fall in household consumption. Goods exports grew 10,4% in March. In particular, more means of transport, agricultural products and machines have been exported.
Gross domestic product (GDP) contracted by 2021% in the first quarter of 0,5. Consumers spent 3,5% less compared to the previous quarter and 8,5% less than the same quarter in 2020. "Agriculture, forestry and fisheries are showing a small contraction, but that is often due to seasonal effects," said CBS chief economist Peter. Hein van Mulligen.
According to Van Mulligen, with an economic contraction of 0,5%, the Netherlands is in the middle bracket of Europe. "Slightly worse than the quarters before, but we've been affected significantly less than other countries." Consumers spent 8,5% less in the first quarter than a year earlier. They again spent much less on catering, recreation and culture and transport, but also on clothing, shoes, home furnishings, cars and motor fuels. Consumers spent more on food, beverages, tobacco and energy than one year previously.
Export conditions in May more favourable
According to the CBS Export Radar, conditions for exports in May are more favorable than in March. "All the indicators in the radar have improved significantly. Producer confidence in the eurozone and Germany rose. The year-on-year contraction of the German manufacturing industry also turned into growth. The exchange rate appreciation was also smaller. European and Dutch entrepreneurs in the manufacturing industry have improved their foreign order positions. Dutch entrepreneurs were positive about this for the first time after July 2018," according to CBS.
The outlook for the economy as a whole is also more positive. According to Statistics Netherlands' Economic Clock, the economic situation in May is less negative than a month earlier. "Despite the contraction, there are signs of recovery," said Van Mulligen.
Linda van Eekeres
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