Market
As one of the most open economies of Europe, the Netherlands could not remain unscathed by the global economic and financial crisis. In response to the economic crisis the government adopted several recovery packages. They were aimed at the areas most affected by the crisis, focusing on household purchasing power, private and public investment and employment protection. Government spending therefore grew 3.1% in 2009 compared to 2008. Together with a rebound in world trade volumes, the measures led to a resumption of growth at the end of 2009, ending six consecutive quarters of negative growth. GDP in 2009 nonetheless fell 4.0%, which is the sharpest contraction in decades. The Netherlands was hit hard by the decline in world trade, as reflected in the negative trade figures, with both exports (-8.4%) and imports (-8.9%) showing declines. The unemployment rate, which is still among the lowest in Europe, rose to 4.9% in 2009 from 3.9% in 2008. Inflation (HICP) more than halved to 1.0% (2008: 2.2%), which was still higher than the Euro Area average. Retail sales turnover was also influenced by the crisis, contracting 4.3%. Retail sales volume fell 4.2%. The food sector performed better than non-food: in the latter category, the health and beauty segment bucked the trend and showed sales growth. The recession influenced the Dutch retail scene and widened the division between primary and secondary locations. Demand for primary locations held up well; they were not affected by vacancies and declines in market rents to the same extent as some secondary locations. Financially strong retailers benefitted from the circumstances by entering new markets and expanding market share. Prime rents therefore remained stable.
Source: Annual Report 2009, Chapter Review of Operations, page 52 (PDF, 6.362 kB)
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