Netherlands records large dip in imports and exports

Imports and Exports | | MIC Customs Solutions |

Disappointing figures on trade have been released from the Netherlands.

New figures from the Netherlands for April 2020 have revealed the biggest decrease in volume of goods exported since June 2009.

According to Statistics Netherlands' statement on Monday (June 15th 2020), the volume of exports was 11.2 per cent lower than was the case last year.

Meanwhile, the volume of imports also dropped by eight per cent, representing the biggest monthly fall since October 2009.

This was mostly attributed to lower exports of transport equipment, machinery and clothing, with purchases from abroad taking a hit due to the coronavirus pandemic.

Statistics Netherlands also said it expects exports to be even lower in June, with the CBS Exports Radar indicating conditions are less favourable than they were in April.

The organisation said there has been a large reduction in German industrial production and a decline in business confidence among both Dutch and European entrepreneurs concerning foreign order positions, both of which have contributed to this decline.

Currently, goods exports from the Netherlands account for around three-quarters of the nation's total exports.

On the back of the new figures, Rabobank economists warned in their quarterly report that the Dutch economy could be facing its worst decline in a century, with the potential to shrink by almost six per cent this year.

Between March and early June, it is estimated the economy declined by eight per cent, although the nation did prove to be better off than many other European countries in the wake of the global pandemic.

Rabobank said it believes Dutch companies will export 7.2 per cent less in 2020 as a whole, although the economy has the potential to grow again by around 2.9 per cent in 2021.

According to the Netherlands Bureau for Economic Policy Analysis, the Netherlands earns around 33 per cent of its income from the export of goods and services.

It is the fifth-largest exporter and the eighth-largest importer of goods in the world, which does make it relatively vulnerable to decreased demand from abroad.