Economic impact of COVID-19

How is the Dutch economy developing?

According to the second estimate conducted by Statistics Netherlands (CBS), gross domestic product (GDP) declined by 8.5 percent in Q2 2020 relative to Q1 2020. The overall picture of the economy has also remained unchanged. More than half of the GDP decline over Q2 is attributable to the nosedive in household consumption, while investments in fixed assets and the trade balance also decreased sharply. Compared to the first estimate, investments have been adjusted upwards. The trade balance has been adjusted upwards as well. However, household consumption has been adjusted downwards. Read more

Is the number of bankruptcies higher than last year?

In the first 41 weeks of 2020, there were altogether 2,670 bankruptcies among companies and institutions (including sole proprietorships) in the Netherlands. This is 289 fewer than in the same period in 2019. Read more

How many companies have been declared bankrupt over the past few weeks?

In week 41 (5 to 11 October inclusive), 43 companies and institutions (excluding sole proprietorships) and 6 sole proprietorship were declared bankrupt. Read more

What will happen to exports in the event of a second international lockdown?

Statistics Netherlands does not make a statement on this, but it did provide the Netherlands Bureau for Economic Policy Analysis (CPB) with figures enabling this institute to make three scenarios for each industry. These scenarios are related to the degree of coronavirus disruptions abroad. In CPB's three scenarios, the value added in the petroleum industry shrinks by 7 percent, 12 percent and 15 percent respectively, due to declining Dutch exports.

By how much did manufacturing output decline?

In August 2020, the average daily output generated by the Dutch manufacturing industry was 4.0 percent down on August 2019. The year-on-year decrease is smaller than in the previous four months. In July, the average daily output generated by the Dutch manufacturing industry was still 5.8 percent down year-on-year. Read more

How are consumer prices developing?

The consumer price index (CPI) was 1.1 percent higher in September than in the same month last year. In August, prices of consumer goods and services were still up by 0.7 percent year-on-year. Price developments of clothing had an upward effect on inflation. In September, clothes were 0.1 percent more expensive than one year previously. In August, prices were still 4.5 percent lower year-on-year. Summer sales lasted longer in 2020 than in 2019, with lower average prices in August as a result. Read more

How is Dutch goods trade developing?

In July 2020, Dutch goods exports were almost 2 billion euros lower compared to the same month in 2019. This represents a decline of 5 percent. In January (at the start of Q1), goods exports were still higher than one year previously, but in April they fell by 21 percent.

How many entrepreneurs expect they will not survive the COVID-19 crisis?

In most industries, more than half of the companies expected to exist for at least another year in September. Only in accommodation and food services, this was a minority of 43 percent of entrepreneurs. However, the improvement in terms of at least one year continuity was most significant in this industry. In June, only one-quarter of business service providers were positive about one year continuity; this had gone up to 43 percent in September. Confidence in survival was highest in the real estate activities industry, at 78 percent.

How is retail turnover developing?

in August 2020, the Dutch retail sector recorded 10.2 percent year-on-year turnover growth. It is the second highest growth rate since publication of data adjusted for the shopping-day pattern started in 2005. The volume of sales rose by 9.3 percent. Turnover was up in both the food sector and the non-food sector. Furthermore, online sales increased by 41.6 percent. Read more

How much decline has been recorded in manufacturing output prices?

Output prices of Dutch-manufactured products were on average 4.3 percent down in August 2020 year-on-year. In the previous month, prices were 4.9 percent down. Petroleum derivatives saw the largest price decrease. Prices dropped by 26.8 percent in August year-on-year. Read more

How much do Dutch consumers spend in EU webshops?

In Q2 2020, Dutch consumers spent 45.2 percent more at foreign EU webshops than in the same quarter last year. The figures on online purchases made by Dutch consumers in foreign webshops are based on an experimental method, using VAT returns. Read more

How much decline has been recorded in the consumption of petrol, diesel and kerosene?

In July 2020, sales of petroleum products such as petrol, diesel and fuel oil as well as the consumption of kerosene rose by 18 percent relative to April. In the latter month, sales were the lowest so far this year. Sales of motor fuels were lower in July than in January of this year. In July, kerosene sales were 37 percent lower than in January, while petrol sales were down by 7 percent. During this period, diesel sales rose by more than 1 percent. Motor fuels; deliveries by petajoule, weight and volume

How is producer confidence developing?

On account of the COVID-19 crisis, in April 2020 producer confidence plummeted to its lowest level (-28.7) since the start of the producer confidence survey in 1985. Confidence among Dutch manufacturers recovered slightly in May and manufacturers were less negative for the fifth consecutive month in September. The producer confidence indicator went from -5.4 in August to -4.8 in September. Manufacturers were mainly less negative about their order position. Read more

How is the mood among entrepreneurs in consumer-oriented industries developing?

In September, for the second month in a row, entrepreneurs in most consumer-oriented industries were more pessimistic about future turnover, staffing levels and the economic climate than in the previous month. An exception was the retail sector, where entrepreneurs were more optimistic about turnover and staffing levels for the second month in a row. After the announcement of drastic measures against coronavirus, the highest share of negatively-minded entrepreneurs since the start of the survey was measured in April. Since that month, the mood has remained predominantly negative, mainly among overnight accommodations, restaurants and cafes, and travel agencies. Read more

How much increase is seen in government debt?

In the first half of 2020, the debt of the central government increased by 47 billion euros. Government income fell mainly because companies will have to pay less corporate income tax over 2020 for the time being due to the coronavirus crisis. At the same time, expenditure by central government increased due to income support measures such as NOW and Tozo. In addition, the continued payment to health care providers and the additional costs of COVID-19 in health care led to increased subsidy costs. This is evident from the monthly financial figures of central government.

How is consumer confidence developing?

In September, confidence among Dutch consumers hardly changed. The consumer confidence indicator stood at -28, up from -29 in August. Consumers’ sentiment about the general economic situation improved slightly. Their willingness to buy remained unchanged. Read more

How is household consumption developing?

in July 2020, consumers spent 6.2 percent less than in July 2019. The decline is smaller than over the previous four months. Consumers again spent less on services such as restaurant visits or use of public transport but more on durable goods such as home furnishings and electrical appliances. Read more

How is turnover developing in the transport sector?

In Q2 2020, turnover in the transport sector fell by more than 21 percent relative to the same period last year. The transport of goods and passengers by air and aviation services were hit hardest by the coronavirus crisis. Postal and courier services were the only services in the transport sector to generate more turnover.

How is turnover developing in wholesale?

In Q2 2020, the sector wholesale and commission trade generated 9 percent less turnover than in the same period one year previously. Within this sector, turnover realised by oil traders nearly halved. On the other hand, wholesale trade in agricultural products generated more turnover (23.1 percent).

How is turnover developing in business services?

Accommodation and food services is one of the sectors most severely affected by the coronavirus crisis in the Netherlands. In Q2 2020, turnover in this sector fell by just over half compared to the previous quarter. In Q1, turnover already fell by nearly 14 percent. In April in particular, accommodation and food services saw a substantial drop in turnover.

How is turnover developing in accommodation and food services?

Accommodation and food services is among the sectors that are worst affected by the measures against the spread of coronavirus. In Q2 2020, turnover in this sector fell by slightly more than half relative to the preceding quarter, as reported by Statistics Netherlands (CBS). The decline was particularly sharp in April. In Q1 2020, turnover in this sector already fell by almost 14 percent. Read more

How is turnover developing in the automotive and motorcycle industry?

In Q2 2020, turnover in the automotive and motorcycle industry was over 25 percent lower than in the same quarter last year. This is the largest contraction in more than 25 years. All sub-branches except motorcycle trade were showing record lows. The turnover decrease already set in during the previous quarter. Read more

How is turnover in the construction sector developing?

In Q2 2020, turnover in the construction sector was 1.6 percent down on one year previously. The last time turnover fell was more than five years ago. With 12 percent less turnover, it was the medium-sized construction companies with 10 to 100 employees that suffered the biggest blows.

How is the coronavirus crisis affecting payment behaviour?

Collaboration with the Betaalvereniging Nederland enables CBS to provide data on the development of a number of important payment flows for the Netherlands as a whole. This shows that during the coronavirus crisis there has been a further shift from offline to online payments. These data also show that since mid-May expenditure via PIN, iDEAL and credit card, after a temporary decline during the lockdown, have been higher on balance than just before.

How many businesses have been granted deferral of payment by the Tax and Customs Administration?

From 1 April to 12 June, due to the coronavirus crisis, the Tax and Customs Administration granted 128 thousand businesses three months' deferral of payment regarding income tax, health insurance law, corporation tax, wage tax and turnover tax (VAT). Nearly 21 thousand of the 66 thousand businesses with 10 to 250 employed persons applied for and were granted a deferral. Of businesses with 2 to 10 employed persons, 12 percent applied for and were granted a deferral; of businesses with 1 employed person, less than 5 percent.

How much did the export value of horticultural products decline?

In March 2020, the export value of horticultural products such as flowers, plants, bulbs and nursery products declined by 22 percent year-on-year. Exports of cut flowers dropped by 26 percent. The largest decline was seen in horticultural exports to Italy: 61 percent. Read more

How large is the agricultural sector?

According to the Dutch Standard Industrial Classification 2008 (SBI 2008), the agricultural sector in the Netherlands comprised 73,465 holdings in Q1 2020. According to the Agricultural Census statistic, the number stood at 53,233 (2019). SBI 2008 and the Agricultural Census apply different definitions of the agricultural sector, which leads to a discrepancy in number of enterprises.

How many overnight accommodations were closed in April?

Due to the COVID-19 measures, approximately one-third of available beds in overnight accommodations were closed in April. The policy with regard to the closure of overnight accommodations was determined per safety region.

What is the size of the financial buffer for most self-employed entrepreneurs?

In 2019, 20 percent of Dutch self-employed entrepreneurs said they would be able to make ends meet for an estimated three months in the absence of revenues from their own company. Nearly 40 percent said they could probably survive for 12 months or more. Self-employed active in transportation and logistics were most likely to indicate a maximum length of time of 3 months without company revenue (30 percent).

How much increase was seen in retail turnover of supermarkets in March year-on-year?

In the second and third weeks of March, Dutch supermarkets achieved higher turnover than in the same weeks last year. Turnover at supermarkets declined in the third week of March compared to the previous week, but was still 25 percent higher than in the same week in 2019. The sharpest increase was seen in turnover of shelf-stable products, including canned goods, frozen vegetables, flour, rice and pasta, along with hand soap, toilet paper and pharmaceutical products.

How much increase was seen in turnover of DIY retailers in March year-on-year?

DIY chains recorded over 50 percent more turnover during the third week of March relative to one year previously. Turnover was nearly 6 percent higher than the week of Ascension Day last year, which is traditionally the week with the highest turnover.

How large is the sector accommodation and food services?

In Q1 2020, the sector accommodation and food services comprised 61,775 businesses. The majority (61,715 businesses) were small and medium-sized enterprises (mkb). 52,295 businesses in accommodation and food services included food and beverage services. In 2017, net sales in the Dutch accommodation and food sector amounted to 26,213 million euros.

How many sports organisations and companies are there?

In 2018, there were 26,510 sports clubs, 1,145 water sports clubs, 1,090 riding schools and 1,250 gyms in the Netherlands. In addition, there were 1,570 fitness companies with a total of 2,015 establishments in 2017. This includes all sports organisations, whether for profit or not.

How is trade with China developing?

In March 2020, goods imports from China and Hong Kong showed a year-on-year decline of 9 percent. The imports already fell by 10 percent over the previous month. Over the months of February and March this year, imports from China and Hong Kong dropped by altogether 700 million euros relative to February-March 2019. Read more

How much is imported into the Netherlands from Italy?

Dutch imports from Italy amount to 11.9 billion euros. This was 2.6 percent of total goods imports in 2019. Read more