During the first quarter of 2022, Belgium and Luxembourg experienced a downfall in their economic activity, recording a decrease in their y/y GDP growth rates relative to 4Q21, whereas the Netherlands experienced a partial recovery. As far as inflation is concerned, Belgium recorded the highest rate (7,97%), whereas the Luxembourg registered the lowest one (5,43%). Regarding the labour market, Belgium, Luxembourg and the Netherlands reached lower unemployment levels than in the fourth quarter of 2021.

Macroeconomic outlook report: Benelux 1Q22

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Macroeconomic overview

  • Belgium: In the first quarter, the Belgian economy worsened, with a 0.80 p.p. decrease in their GDP relative to the previous quarter. However, the y/y variation of its GDP registered this time a positive rate, standing at 4.90%. Regarding the inflation rate, it increased to 7.97% after a rise of 2.82 p.p. with respect to the fourth quarter. In turn, the unemployment rate declined 0.27 p.p., down to a 5.60% rate.
  • Netherlands: The economy of the Netherlands increased compared to the fourth quarter of 2021, recording for the fourth time after the pandemic a positive year-on-year GDP growth rate of 7.00%. In turn, it recorded an inflation rate of 7.43% after an increase of 2.66 p.p. Regarding the unemployment rate, it decreased 0.37 p.p., down to 3.43%, the lowest rate among the three countries.
  • Luxembourg: In the first quarter of 2022, Luxembourg's economy decreased its GDP rate of change compared to the previous quarter, registering a rate of 4.00%. The unemployment rate continued to decline to 4.82%, after a decrease of 0.45 p.p. compared with the previous quarter. Inflation rose by 1.34 p.p. to 5.43%, making Luxembourg the country with the lowest inflation in the Benelux, followed by the Netherlands.

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