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Despite less stringent measures than in other countries, the Dutch economy is suffering severely from the outbreak of COVID-19, economists at Rabobank report.

Key quotes

“We expect the Dutch economy to shrink by 5.0% in 2020. Recovery will begin in the second half of 2020, resulting in forecasted GDP growth of 4.9% in 2021.”

“Unemployment is expected to increase and peak at the end of 2020 at 7.5%, up from a record-low of 2.9% in February. And this will of course hurt consumption further.”

“The budget for the support measures has initially been set at around 10 to 20 billion euros in the first three months, with the explicit mention that more money can be made available. Dutch public finances provide plenty of headspace to undertake these commitments.”