This article was last updated on June 24, 2022
Faster than projected expansion of the economy results in record earnings for businesses.
In the first quarter of this year, however, the Dutch economy grew. The Central Bureau of Statistics (CBS) originally predicted that the economy’s size would have stayed unchanged from the fourth quarter of 2021 to the third quarter of 2022. Nonetheless, CBS’s second, more exact computation showed a 0.4 percent increase rate.
The rapid adjustment in growth is partially due to the fact that Statistics Netherlands now has a wider range of data. Consumption is growing at a faster rate than previously estimated. CBS head economist Peter Hein van Mulligen said that more Dutch individuals went on vacation abroad over the spring break. A lot less money was spent than expected by the government.
The seasonality of the data has also been re-examined by CBS. In the third and fourth quarters of last year, growth was lower, and in the first quarter of this year, growth was higher.
Profits surpassing all expectations
Also benefiting from the first three months of development was the business community. Profits for corporations have soared to new heights. They achieved a combined profit of 81.5 billion euros. This represents an increase of 13.7 billion euros over the previous year. The Dutch government’s monetary assistance assisted certain businesses in 2021. This year’s first quarter saw far less of this kind of support.
Mineral extraction, the oil business, energy firms, wholesalers, caterers, travel agency, and aircraft all saw increases in profits. Companies paid greater profit tax because they made more money. There were greater government receipts than government expenditures in January, February, and March. A rare occurrence: The first time since the corona crisis.
According to Peter Hein van Mulligen, the Dutch economy is doing well as a whole. Economic forecasters at Rabobank predicted a downturn in the economy. “While the r-word is frequently bandied about, industrial production, for example, is nonetheless moving along quite fine. Consumption was up in April, but that’s when compared to last year’s lockout time, when both the job market and the economy were on fire.”
This morning, ING stated that customers appeared to be being more frugal with their spending. The bank’s debit card transactions are down from a month ago.