The Netherlands' shrank modestly in the fourth quarter of 2020, led by a decline in household consumption, defying expectations for an expansion.
Gross domestic product decreased 0.1 percent from the previous quarter, when the economy expanded a revised 7.8 percent, preliminary figures from the Central Bureau of Statistics showed on Tuesday. Economists had forecast 0.2 percent growth.
In the second quarter, GDP fell a record 8.5 percent due to the severe impact of the coronavirus pandemic and subsequent lockdown restricitons.
Household spending decreased 1.4 percent in the fourth quarter and government consumption dropped 0.1 percent. Exports increased 1.0 percent and imports grew 1.1 percent. Investments rose 1.8 percent.
Declines in the trade, transport and hotel and catering industry were the leading contributors to the contraction of GDP. Business services, industry and the information and communication sector made a positive contribution to GDP.
On a year-on-year basis, GDP fell for the fourth consecutive quarter, down 2.9 percent after a 2.5 percent fall in the previous three months. Economists had forecast a 2.4 percent fall.
In the year 2020, the economy shrank a record 3.8 percent, the first decline since 2013 and the worst fall since the 3.7 percent contraction in 2009 amid the global financial crisis. In 2019, the economy grew 1.7 percent.
Consumer spending decreased a record 6.6 percent as catering, recreation and culture, transport and clothing sectors were shut for several months due to the coronavirus pandemic.
For comments and feedback contact: editorial@rttnews.com
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
