During the third quarter of 2021, Belgium, Netherlands and Luxembourg consolidated the recovery of their economic activity; nevertheless, they recorded a decrease in their y/y GDP growth rates relative to 2Q21. As far as inflation is concerned, Belgium recorded the highest rate, whereas the Netherlands registered the lower one. Regarding the labour market, Belgium, Luxembourg and the Netherlands reached lower unemployment levels than in the second quarter.

Macroeconomic outlook report: Benelux 3Q21

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Macroeconomic overview

  • Belgium: In the third quarter, the Belgian economy continued its recovery, with an 11.10 p.p. decrease in their GDP relative to the previous quarter. Thus, the y/y variation of its GDP registered this time a positive rate, standing at 4.00%. Regarding the inflation rate, it increased to 2.62% after a rise of 1.18 p.p. with respect to the second quarter. In turn, the unemployment rate declined 0.03 p.p., down to a 6.30% rate.
  • Netherlands: The economy of the Netherlands decreased substantially compared to the second quarter of 2021, recording for the second time after the pandemic a positive year-on-year GDP growth rate of 5.00%. In turn, it recorded an inflation rate of 2.17% after an increase of 0.17 p.p., placing the Netherlands as the country with the lowest inflation in the Benelux. Regarding the unemployment rate, it decreased 0.17 p.p., down to 3.13%, the lowest rate among the three countries.
  • Luxembourg: In the third quarter of 2021, Luxembourg's economy registered a 7.30 p.p. decrease in its y/y GDP variation rate with respect to the previous quarter, recording a rate of 5.30%. Regarding the unemployment rate, it continued falling, down to a 5.55% rate, after a decline of 0.34 p.p. relative to the second quarter. In turn, inflation experienced a 0.21 p.p. increase, reaching a 2.48% rate.

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