Dutch financial system shrinks by ‘unprecedented’ 8.5% as coronavirus hits


The Hague, August 14

The Dutch financial system suffered an unprecedented 8.5 per cent contraction within the second quarter because the coronavirus pandemic slammed the brakes on spending, exports and investments, the nation’s Central Bureau for Statistics stated Friday.

While the Dutch contraction in comparison with the primary quarter was dangerous, it was not as extreme as different main European nations like France and Germany. The 19-country eurozone, which the Netherlands is part of, dropped by a quarterly 12.1 per cent whereas the UK reported a 20.four per cent decline.

“Corona has caused unprecedented economic damage. It is an economic catastrophe of exceptional proportions,” stated Peter Hein van Mulligen, chief economist on the Dutch statistics workplace.

It stated client spending slumped by 11.Eight per cent in contrast with the identical three months final 12 months as lockdown measures hit gross sales at bars, eating places, garments shops and fuel stations.

The report on the financial malaise capped a tumultuous week for the federal government of Prime Minister Mark Rutte, whose current dealing with of the pandemic was labeled “chaos” by opposition lawmakers in a heated parliamentary debate Wednesday.

Government lawmakers additionally confronted harsh criticism for leaving the controversy earlier than it was completed, that means {that a} vote couldn’t be held on an opposition proposal to award healthcare employees a pay rise.

Rising confirmed COVID-19 infections within the Netherlands, with Amsterdam and Rotterdam among the many hardest hit, led the UK to re-impose quarantine restrictions on returning vacationers, a transfer more likely to additional harm the Dutch tourism trade that’s already reeling after months of coronavirus journey bans all over the world. AP 



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