News CBS
Economy will not grow in first quarter of 2022
The gross domestic product (GDP) in the first quarter is virtually the same as in the last quarter of last year. But compared to the first quarter of 2021, the economy has grown by 7%. This was announced by Statistics Netherlands (CBS) today (May 17). The value added of agriculture was negative (-1,9%) and slightly lower than one quarter previously.
Compared to the fourth quarter, government consumption fell by 4%. Households spent 0,1% less. Exports of goods and services decreased by 0,5% and imports decreased by 1,3%. Investments increased by 0,8%. Sectors that made a positive contribution to GDP included construction, business services and culture, sports and recreation. Government, education and health care had the most negative contribution.
The fourth quarter already saw a slowdown in growth, compared to two quarters earlier. Gross domestic product grew by 0,9% in that quarter compared to the third quarter of 2021, following a solid recovery of the economy in the preceding quarters. In the third quarter, the Netherlands was already at pre-corona level.
7% year-on-year growth
GDP in the first quarter of this year was 7% higher than in the first quarter of last year. Household consumption and the trade balance in particular contributed. Government consumption also made a positive contribution (+2,5%) due to expenditure on health care, including booster vaccinations. Consumers spent 10,6% more in the first quarter. This is partly because there was a hard lockdown in the first quarter of 2021.
"This year too, the first quarter started with a lockdown, but more and more relaxations were implemented from mid-January," says CBS. "Consumers therefore spent more on catering, culture and recreation, clothing and home furnishings." Investments in the first quarter of this year were at about the same level as one year previously. More was invested in software, R&D and industrial buildings, but less in aircraft and housing.
Exports of goods and services were 4,7% higher in the first quarter than twelve months previously. In particular, more chemical products, machines and foodstuffs went abroad. Exports of Dutch manufactured goods were at about the same level, while re-exports grew by almost 3% on an annual basis. Imports of goods and services were 2,9% higher. The trade balance made a positive contribution to economic growth.
Added value agriculture negative
The value added (the difference between production and consumption of energy, materials and services) of the agriculture, forestry and fisheries industry was negative in both the fourth quarter of 2021 and the first quarter of this year and compared to the previous quarter slightly deteriorated. Value added was -1,4% in the fourth quarter of last year and -1,9% in the first quarter of this year.
The added value of the sector 'culture, sports, recreation and other services' grew the most, by more than half. Mainly sports, relaxation, art and culture grew. Although this industry is growing for the fourth consecutive quarter, the loss caused by the corona measures in the first quarter of 2020 to the first quarter of 2021 has not yet been fully recovered.
Exports shrink, less agricultural products exported
The statistical office also released the export figures for March today. The volume of goods exports was 1,9% smaller than in March 2021. A month earlier, exports still grew by 1,5%. In particular, fewer petroleum products, agricultural products and ships were exported. Exports of machinery, chemicals and metal products grew. The volume of goods imports was 2,2% lower in March than in March 2021. In particular, fewer minerals and aircraft were imported.
Statistics Netherlands also published consumption figures today. In March, consumers spent 11,2% more than in March 2021. Spending more was mainly on services and durable goods. The growth is slightly smaller than in February 2022. Retail sales volume was 3,7% higher in March than in March 2021. The volume of the non-food sector grew by more than 21% and that of the food sector shrank by more than 6% .
Linda van Eekeres
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