Wholesalers to more than make up for 2020 loss this year: ING

Wholesalers to more than make up for 2020 loss this year: ING

This year, Dutch wholesalers will likely more than make up for the turnover losses they suffered in 2020, ING economists expect. After a turnover contraction of 3.4 percent last year, ING expects 5 percent growth for the sector in 2021. The sector is very positive about the future and the bank believes it will soon return to its place as driving force behind economic growth, ANP reports.

In 2020, wholesalers struggled under coronavirus lockdowns that closed supply chains and resulted in declining demand for many products. Though there were major differences between the different segments in the sector. Agricultural wholesalers, for example, achieved considerable growth, while raw material wholesalers saw their turnover dwindle.

But this year will be better. “Even if uncertainty about the restrictive measures and the development of the coronavirus remains high in the rest of 2021, optimism dominates: world trade has revived strongly and the economies are slowly but surely opening up again,” the economists said.

Wholesalers of raw materials like oil, metal and chemical products in particular will have a good year, ING expects. Oil prices have recovered significantly since the start of 2021 and ING expects a further upward trend for the rest of this year. After a 16 percent loss last year, this branch of wholesale trade may well see growth of almost 20 percent this year, the economists said.