Economy up 1.3 percent

21/12/2005 15:19

Dutch economy grew in the third quarter of 2005. Gross domestic product (GDP) was 1.3 percent higher than one year previously. GDP was mainly pushed up by an increase in exports and investment spending. Households and government consumption were also higher.

After correction for working day and seasonal effects, the volume of GDP was 0.6 percent higher than in the second quarter of 2005. This quarter-on-quarter growth is above the average of the previous four quarters.

The export volume of goods and services was 5.0 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 growth rate of the imports (6.1 percent) was higher than those of the exports.

Households spent 1.2 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 first quarter of 2002. Dutch consumers mainly spent more on goods, particularly consumer electronics, furniture and clothes.

The volume of government consumption in the third quarter was 1.3 percent higher than in the same quarter last year. Government spending was up for public administration after one and a half year of reduced expenditure. Also real expenditure on care and welfare recovered.

Fixed capital formation was 6.6 percent higher than in the same quarter last year. To an important extent this was caused by higher investments in dwellings. However, the greatest increase was in the investments in computers.

Disposable for final expenditure and final expenditure (volume)

Disposable for final expenditure and final expenditure (volume)