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    Holland's Economy Is Cooling, But It Is Far From Recession.

    2019/8/15 17:11:00 2

    Economic Recession

    Holland economists believe that Holland's economy is now cooling down after years of strong growth.

    European stock market slumped again in August 6th (2019), and the AEX index fell 2.4%. Intelligence group research company also announced that job seekers' situation is deteriorating. Although there are still many job vacancies (this year, more than one million), the unemployment rate rose slightly from 3.3% to 3.4% in June, while the number of permanent contracts provided by employers also declined. There was still a great demand for engineers and information communication technology experts. Arjan Ruis, a labor market analyst, said that job losses were expected to be reduced, and that the labour shortage would ease in the coming years.

    According to the statistics released by the ABU employment agency, the demand for temporary workers has dropped significantly. Since the end of last year, the number of employment agencies has declined, and the number of temporary workers in May has dropped by 10%. Ruis analysts pointed out that this phenomenon is not uncommon. If the economy is expected to slow down, the company will first cut out flexible workers.

    The industrial sector has also been affected by the development of the global economic situation. For example, the Sino US trade war and the UK's solution to Europe are not fully in line with the wishes of Holland enterprises and the predicament of German industry. Since the end of last year, the turnover of the industrial sector has been declining, and output has also declined since spring. Rabobank economist Lize Nauta said that if the trend continues, it may affect other industries, such as the transportation industry.

    Marieke Blom, chief economist at ING bank, believes that this is not a harbinger of a new crisis, like slowing down the ship but not sinking. The current economy has slowed down slightly, but it has not collapsed. Nauta believes that there are many stressful events happening in the world, but Holland's economy is still growing, consumer spending is still increasing and businesses are continuing to invest.

    Blom is also optimistic. She pointed out that wages are still growing. ING bank still predicts that this year's wage growth rate will be 2% lower than that in 2018, but the economy is still growing, but it is difficult to predict the impact of all international tensions.

    Bank of America Merrill Lynch has recently reported that investors are wary of worrying that the central bank can not stimulate economic growth, which may lead consumers and banks to start hoarding. At the same time, economists believe that the decline in confidence in purchasing managers is worrisome because purchasing managers are a major economic indicator. If purchasing managers stop spending, they may lead to a decline in production and employment.

    Consumer confidence has finally picked up again, but consumers are not positive about their financial situation or overall economic situation, leading to the drop in housing prices even in the prime locations of downtown Amsterdam. In addition, the real estate market is also affected, and the number of houses sold is falling. Even so, economists still insist that Holland is far from the recession.

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