Purchasing power increases by 2.2 percent, strongest growth since 2016
Despite the corona crisis, purchasing power in the Netherlands has grown on average by 2.2 percent in 2020. That is the highest growth since 2016. This is reported by Statistics Netherlands (CBS) on Wednesday.
Purchasing power increased most for employees, at 4.3 percent. Of this group, 70 percent improved in 2020. The collective labor agreement wage increase was 2.9 percent. This seems remarkable in a year in which many companies struggled with the economic consequences of the corona crisis. However, a large part of the collective labor agreement agreements had already been made before that time and applied for the whole of 2020.
Government policy for 2020 had a positive effect on purchasing power. This was mainly due to ‘planned tax measures, including increases in the general tax credit and the employed person’s tax credit, and the introduction of a two-bracket system in income tax’. These policy choices contributed to 1 percent of the positive purchasing power development, Statistics Netherlands estimates.
The rise in wages was offset by inflation of 1.3 percent. Personal changes, for example a new job, a promotion or loss of work or turnover, had a negative effect on purchasing power development in 2020: a minus of 0.3 percent. This minus could be kept limited by the temporary support packages that were set up by the government.
Also read: The lure of the purchasing power plates
The purchasing power of people who received a pension increased by 1 percent on average. Among the self-employed, the average was 1.1 percent, although many people there also struggled with lost income. For 40 percent of the self-employed, purchasing power decreased by 2.6 percent or more, for a fifth this was even more than 16 percent.
Purchasing power grew by an average of 0.3 percent in 2019. Then there was the smallest growth since 2013. Last January, Nibud calculated an average increase in purchasing power of 1.5 to 2.5 percent for 2020.
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In this blog post NRC about the latest developments around the corona crisis. This was the most important news of the past few days.
Outgoing Prime Minister Mark Rutte (VVD) and outgoing Minister Hugo de Jonge (Public Health, CDA) held a press conference about the corona measures on Tuesday. They have announced a number of relaxations, which will take effect on September 25. This is how the one and a half meter rule abolished and all visitors 13 years and older must have a corona ticket to access cafes, cinemas, football stadiums and other crowded places.
A number of measures will remain in place after September 25. stay like this face masks mandatory in public transport, that obligation will expire on platforms and at train stations, and cafes must still close their doors at midnight. Nightclubs are allowed to open again, provided that the last guest has also left at 00.00.
The hospitality industry expects thousands catering entrepreneurs will not enforce the new corona measures. Structural checking for admission tickets is impossible, said the director of trade association Koninklijke Horeca Nederland (KHN) Dirk Beljaarts on Monday. The Telegraph.
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