Business dynamics during the COVID pandemic
The corona crisis has visible consequences for economic activity in the Netherlands. In 2020, 6.5% fewer businesses with at least 2 employees were established. This decline is not limited to the sectors most affected by health restrictions, such as the hotel and catering industry, as almost every sector saw a decrease in the number of starters last year. The number of business closures (including bankruptcies) of companies with at least 2 employees is about the same as before the corona crisis. This is striking because more businesses normally stop during recessions. The decrease in new startups and the lower number of exits than expected can translate into lower economic growth in the long term.