Economic growth at 2.7 percent in the third quarter of 2006

21/12/2006 09:30

According to the latest figures by Statistics Netherlands, the Dutch economy saw a 2.7 percent growth in the third quarter van 2006. This growth in gross domestic product (GDP) came about with one working day less than in 2005. The second estimate of economic growth in the third quarter is 0.1 percent point higher than the first estimate, which dates back to 14 November.

In the third quarter, exports and of household consumption grew slightly less than in the first six months. Investments, however, were clearly on their way up.

Quarter-on-quarter growth at 0.7 percent

The volume of GDP in the third quarter was up by 0.7 percent on the second quarter of 2006. This takes the working day patterns and seasonal effects into account.
The outcome of the first estimate was 0.6 percent. The quarter-on-quarter growth of 0.7 percent is in line with the average of the previous quarters.

Investments growing faster, exports and consumption slightly slower

The 2.7 percent economic growth in the third quarter of 2006 is just about the same as that in the first six months. Compared to 2005, the growth rate nearly doubled. The growth rate is fastest in investments and household consumption. Exports remain the foundation of Dutch economic growth.

Investments continued to grow in the third quarter. Companies invested more in machinery, computers and trucks. Investments in housing and infrastructure also went up. Household consumption was slightly less exuberant in its growth than in the first six months. The same was true for exports. Imports grew faster than exports.

Commercial services and construction carry production growth

In the third quarter, production grew fastest in commercial services and construction. In commercial services, the performances by temporary work agencies and wholesalers stood out. Construction benefited from the recovery in investments.

Production growth in the manufacturing industry and non-commercial services (government plus health and social work) remained below average. Energy production was down substantially on 2005 with less electricity generated and less natural gas extracted. There was a substantial increase in the imports of natural gas and electricity.