Gross domestic product (GDP) rose 1.0 percent in the fourth quarter of 2021 compared to the third quarter of 2021. The first calculation, published on February 15, showed growth of 0.9 percent. In addition to the increase in government spending, the growth is due to the investments of companies.
Compared to a year earlier, GDP grew by 6.5 percent in the fourth quarter. According to the first calculation, that was 6.2 percent. Furthermore, the contraction of the first quarter has been adjusted from minus 2.4 to minus 2.2 percent. Second quarter growth has been adjusted from 10.4 to 10.7 percent and third quarter growth from 5.2 to 5.4 percent. The adjustments are mainly due to an upward adjustment of health care and the balance of product-related taxes and subsidies.
Economic growth for the whole of 2021 was 5.0 percent. In the first calculation, it was 4.8 percent. The growth in the past year is mainly due to the higher trade balance and higher consumption by households and the government. More was also invested than in 2020.
Purchasing power
Statistics Netherlands also reports that real disposable income rose by 2.6% last year. This is the increase in disposable income less inflation. Total employee compensation went up by 4%. More jobs were created, but the number of hours worked also increased. In addition, collectively negotiated wages rose by an average of 2.2%.
The total mortgage debt of all Dutch citizens rose by €33.3 billion to €783 billion, Statistics Netherlands further reported. Mortgage lenders have been reporting many refinancing of mortgages for renovation and sustainability for some time now. Still, the debt-to-GDP ratio, total mortgage debt as a percentage of the size of the economy, fell to 91%.