Economy bounced back with 3.1% growth in second quarter of 2021

The Dutch economy grew by 3.1% in the third quarter of 2021, fuelled by the lifting of lockdown restrictions on shopping, travelling and eating out.

Figures from the statistics agency CBS showed the Netherlands went through a mini-recession in the first six months of 2020, with the economy flatlining in the first quarter and shrinking by 0.8% in the spring.

The economy as a whole has still not recovered from the first pandemic shutdown, when it shrank by 8.4% in the second quarter of 2020, but some sectors are back to 2019 levels.

GDP grew by 9.7% year-on-year, the highest rate ever recorded, and is back at the level of June 2020, six months before the downturn began.

Industry grew by more than 14% while the construction sector recorded 5% growth. However, the cultural and recreation sector, which was hit hard by the closure of museums, concert venues and sports clubs, is still far less economically active than in 2019.

Exports were 9.3% higher than two years ago following a surge in demand for machinery, chemical and metal products and transport equipment.

Household spending was up by 5.7% from the first quarter of 2021 but is still 5% lower than the level of 2019, while consumer confidence remains just below zero, meaning more people are pessimistic than optimistic about the economy.

Government spending increased by 7.4%, partly due to increased investment in healthcare and education and social security, as well as the cost of coronavirus tests and vaccines.