Market Information Tuesday 9 June 2020

The Dutch economy will enter a deep recession this year due to the corona crisis. The Dutch Central Bank (DNB) estimates that gross domestic product (GDP) in the Netherlands will decrease by 6.4% in 2020. This is almost twice as much as during the financial crisis in 2009. As a result, per capita GDP will fall back to its 2015 level in one blow. The Dutch economy is not expected to recover from this blow until 2023.

The corona crisis will probably cost hundreds of thousands of Dutch people their jobs. For this year, DNB is counting on the strongest contraction in employment since the 1970s. According to the central bank, unemployment will probably rise to 4.6% of the labour force in 2020, and because many companies will not reorganise until next year, unemployment is expected to rise further to 7.3% in 2021. This implies that some 700,000 people will soon be out of work, actively looking for work.

Destatis has published figures showing that German exports are severely affected by the corona crisis. Exports fell by 24% in April 2020 compared to March 2020. In March, exports also declined by 12% compared to the previous month. These figures represent the largest export decline since the start of the measurements in 1990. Imports in April decreased by 16.5%.

The 6M Euribor decreased with 2 basis points to -0.20% compared to previous business day. The 10Y Swap decreased with 4 basis points to -0.05% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.