Circumstances were still unfavourable for Dutch exports in August 2009. But the situation is slightly better than in July, according to Statistics Netherlands’ new Exports radar. This new infographic shows whether the situation for Dutch exports is favourable or unfavourable on the basis of six selected indicators.
Exports situation slightly better
According to the Exports radar the circumstances for Dutch exports were slightly better in August than in July. Most indicators in the interactive graph show an improvement. However, the situation is still unfavourable. The Exports radar shows that five of the six indicators are well below zero. This means that they are at a level that is significantly less favourable than average.
Producers’ confidence in both Germany and the eurozone are negative. The same is true of the opinions of both Dutch and European manufacturers about foreign orders. Developments in German manufacturing production are also unfavourable. Only the real exchange rate is doing better than average, which is good for Dutch competitiveness. The unfavourable picture as painted by the Exports radar corresponds with current developments in the volume of Dutch goods exports.
Developments on main foreign markets especially relevant
Developments in Dutch exports depend largely on developments on the main foreign markets for Dutch products. In addition, Dutch competitiveness is also important. Germany is the Netherlands’ most important trade partner. Most other Dutch products go to countries in the eurozone. If the economy in these countries picks up or slows down, this will have an effect on Dutch exports, both on exports of Dutch manufactured products and on re-exports.
Producers’ confidence in Germany and eurozone important indicators
Statistics Netherlands’ new Exports radar comprises six indicators which together give a reliable picture of Dutch exports. Developments on the main export markets are reflected by producers’ confidence in Germany and in the eurozone, and developments in German manufacturing output. In addition, the real exchange rate and opinions of Dutch manufacturers about foreign orders give an indication of developments in Dutch competitiveness.
Exports radar included in the Business Cycle Factsheet
The Exports radar is one of the components of the new Business Cycle Factsheet. The Factsheet provides a quick look at business cycle developments on the basis of the Business Cycle Tracer Indicator, the Business Cycle Dashboard and the Exports radar. In the course of 2010 the Factsheet will be expanded to include new indicators and (business cycle) radars.
Floris van Ruth