The coronavirus outbreak could limit economic growth in the Netherlands
The Dutch Central Planning Bureau (CPB) has warned that the coronavirus could severely limit the Dutch economy’s growth, if it is not quickly brought under control.
Economic growth in the Netherlands
According to estimates by the CPB, the Dutch economy will grow by 1,4 percent this year and then by 1,6 in the following year. These figures are slightly higher than estimates made in December, due to a number of factors.
The Central Bureau of Statistics (CBS) has recently released figures stating that the Netherlands will have a population of 18 million by 2029, rather than 17,7 million as previously thought. With more people working in the Netherlands, economic growth will also increase. American trade policy and the relationship between Britain and the EU will also impact economic growth in the Netherlands.
According to the CPB, the prospective economic growth in the Netherlands can mainly be attributed to more government and consumer spending. Due to higher wages stemming from labour shortages and tax cuts, residents of the Netherlands have much more purchasing power, which is expected to grow by 2,1 percent this year.
Coronavirus could limit this growth
However, the coronavirus, which has infected 24 people in the Netherlands as of March 3, could limit these growth projections quite severely. The above estimations of economic growth in the Netherlands are based on the assumption that the outbreak will be quickly brought under control.
CPB director, Pieter Hasekamp, said that “if the spread of the virus is not stopped quickly, this will further have a negative impact on economic growth.”
The CPB has created a scenario whereby the coronavirus is not dealt with and continues to spread further. In this case, potential growth estimations drop to 0,5 percent in 2020 and 0,3 percent the following year. The CPB has also stated that reducing PFAS and nitrogen-compound pollution will hinder economic growth by 0,2 percent.
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