Another factor is how dependent countries are on tourists and the number of foreign guests they can receive. “For example, in Austria, where very strict lockdown measures were in place at the beginning of October, the winter sports season plays a role. The Austrian economy contracted by about 4 percent in the last quarter.”
Also important is how easily residents can operate from home. This depends on the type of activity in the country and the degree of digitization. “You can see that this is more difficult in Italy and Spain, for example, than in the Netherlands and Germany.”
What explains the positive numbers in China? “China has its own dynamics. The economy there is now growing very fast because the industrial sector is catching up. Domestic spending is rising again. The country is now less affected by the virus than the rest of the world.”
The valley is less deep
Incidentally, the European Commission expects the Dutch economy to grow at a slower pace this year than other countries. The committee estimates the increase at 1.8 per cent, and for the eurozone as a whole, it is 3.7 per cent.
On the other hand, the Netherlands will have to emerge from a valley less shallow than other countries. Therefore, this does not mean that the Dutch economy will emerge from the Corona crisis in a less favorable manner than other countries at the end of this year.
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