A quarter of the economic growth in the Netherlands ended up abroad last year, the Central Bureau of Statistics (CBS) reports. This is partly because Shell moved to the United Kingdom and profits from Dutch subsidiaries largely flowed there. Other companies also paid part of their substantially increased profits abroad. Within the Netherlands, much of the economic growth came to households.
According to Statistics Netherlands, the fact that a considerable part of Dutch economic growth went abroad was also due to an earlier agreement on the closure of the Groningen gas field. Due to the accelerated closure, NAM will receive compensation from the government to fill the gas storage at Norg with foreign gas. In addition to the British Shell, the American ExxonMobil owns NAM.
While in 2022 foreign countries benefited on balance from Dutch economic growth, it was the other way around a year earlier. At that time, people in the Netherlands received more on balance from abroad, for example through dividends or salaries from foreign employers.
The Dutch economy grew by 4.5 percent in 2022, but without correction for high inflation, it was 10 percent, according to Statistics Netherlands. A large part of this, namely half, ended up with households. Their disposable income, ie what remains after paying taxes and social security contributions, rose both before and after an inflation adjustment.
One of the reasons is that people have started working much more, with a record number of hours worked in 2022. But people who worked less declined because wages did not rise as fast as prices. Companies’ disposable income actually fell, because they paid out much of their significantly increased profits to shareholders.
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