Economy up 0.9 percent

15/11/2005 15:32

Dutch economy grew in the third quarter of 2005. Gross domestic product (GDP) was 0.9 percent higher than one year previously. After correction for working day and seasonal effects, the volume of GDP was 0.3 percent higher than in the second quarter of 2005. This quarter-on-quarter growth is moderate. In the last two quarters GDP underwent extreme positive and negative changes.

GDP was not only pushed up by an increase in exports, but also by higher household spending and increasing investment spending. The export volume of goods and services was 4.7 percent higher in the third quarter of 2005 than twelve months previously. This increase is slightly smaller than in the first half of the year. The increase is almost completely on account of re-exports, i.e. the export of goods produced elsewhere. The increase in imports (4.6 percent) was nearly equal to that in exports.

Households spent 1.0 percent more after adjustment for price changes in the third quarter of 2005 than in the same quarter last year. This is the largest growth since the third quarter of 2002. Dutch consumers spent more on goods in particular. Both spending on food, drink and tobacco, and that on durable goods were higher than last year.

The volume of government consumption was 0.5 percent lower in the third quarter than in the same quarter last year. Government spending was down for education, and especially for public administration and defence. Real expenditure on care and welfare did increase, but by much less than in previous years.

Fixed capital formation was 3.4 percent higher in the third quarter of 2005 than in the same quarter last year. To an important extent this was caused by higher investment in construction: housing construction is picking up. Companies also invested more in machines and installations, company buildings, infrastructure and company cars. Spending on computers was extremely high.

Disposable for final expenditure and final expenditure (volume)

Disposable for final expenditure and final expenditure (volume)