Economic contraction of 5.4 percent

24/09/2009 09:30

The Dutch economy contracted by 5.4 percent in the second quarter of 2009 relative to the same period in 2008. In the first quarter, the downturn was 4.5 percent.

The Dutch economy shrank by 1.1 percent in the second quarter relative to the first quarter, if calendar and seasonal effects are taken into account. Quarter-on-quarter-growth has been negative for five consecutive quarters. This has not occurred since Statistics Netherlands started the survey. The downturn in the second quarter was notably smaller than in the first quarter, when quarter-on-quarter growth was -2.7 percent.

Fixed capital formation decreased by 13.4 percent. Investments in machinery and commercial vehicles and in residential and non-residential building decreased. Investments in infrastructure projects, on the other hand, were higher than one year previously.

Exports and consumption also declined in the second quarter. The volume of exports of goods and services was 12.4 percent down on one year previously. The volume of imports of goods and services decreased by 12.2 percent. Households spent 2.7 percent less on goods and services. Government consumption was the only expenditure category showing growth. The volume was 3.1 percent up on the second quarter of 2008.

Output in the sectors mineral extraction, manufacturing industry and - to a lesser extent - construction, was far below the level of the second quarter of 2008. Production of goods manufacturers was 11.0 percent down. Output in the sector commercial services dropped by 5.4 percent, whereas output in the sector non-commercial services grew by 2.1 percent.

Disposable for final expenditure and final expenditure (volume)

Disposable for final expenditure and final expenditure (volume)