Categories: Economy

Business investment growing, but not fast Related articles

Companies made more investments last month than in the same month a year earlier. “More than 4% is good growth, but a real recovery, it’s not that bad,” says Peter Hein van Mulligen, chief economist at CBS.

According to Statistics Netherlands, growth is visible across the board. ‘More investment has been made in telecommunications, industrial buildings and transport. But compared to the previous quarter, there was less investment in homes.’

According to Statistics Netherlands, the growth indicates that companies have confidence in the future. Business confidence remains under pressure, but a better 2023 is also expected in terms of profitability and investments. Sure, a little less exuberant than a year ago.

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According to Van Mulligen, rising energy prices are still a cause for concern and this depresses the mood. ‘As with consumers, businesses are concerned about this. Especially with SMEs, large companies are more agile here. Despite the concerns, entrepreneurs here too are moderately positive.’

No raging recession

According to Statistics Netherlands, there are no signs that the Netherlands will end up in a “jarring recession”, but it cannot be ruled out. Household consumption is still fairly stable, and many people have been saving during the coronavirus pandemic. On the other hand, most recessions in the Netherlands start abroad.’ And there the signs are red, Van Mulligen sees.

Companies made more investments last month than in the same month a year earlier. (ANP/Kim van Dam)

‘The Netherlands is a relatively small and open economy. So if things go wrong in countries around us, like Germany, you’ll see it reflected in exports. But the job market is still very tight, so the consequences of a recession may be less than expected.’

Author: John Luke
Source: BNR

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