Dutch economy back to pre-Covid level in 3rd quarter

NETHERLANDS: The economy grew by 1.9 percent in the third quarter, bringing it to a higher level than before the pandemic for the first time since the outbreak of the coronavirus crisis, Statistics Netherlands (CBS) reported. The growth was more robust than economists had foreseen, mainly caused by increased household spending. Investments actually declined.

At the end of the second quarter, gross domestic product (GDP) was already almost the same as at the end of 2019. With the new increase, the economy has therefore fully recovered from the coronavirus contraction in the first and second quarter of last year. After that, there was also some recovery, but a new dip followed in the first quarter of this year due to the coronavirus lockdown last winter. After that, the recovery continued strongly.

In addition to increased household consumption, the government also spent more, including on coronavirus tests and vaccination by the GGD. Households spent more money on things like catering, recreation, and culture, sectors that they were previously unable to use. More was also spent on clothing, now that people were able to visit each other more often.