Economy declines by 0.7 percent

15/02/2012 15:00

The Dutch economy declined by 0.7 percent in the fourth quarter of 2011 compared to the fourth quarter of 2010. In the third quarter, the economy had still grown by 1.1 percent compared to the third quarter of 2010. In the fourth quarter, household consumption declined more than in the third quarter. The growth of exports and fixed capital formation slowed down.

The Dutch economy also declined by 0.7 percent in the fourth quarter of 2011 compared to the preceding quarter. For the second time in a row, economic growth was negative relative to the preceding quarter. The Dutch economy is currently in recession.

Household consumption was 1.8 percent down on the fourth quarter of 2010. Household spending on goods was 3.8 percent down. Spending on services was at the same level as one year previously. Due to the relatively mild weather, the consumption of natural gas dropped considerably. This had a considerable downward effect on household consumption, but spending on other goods was also lower than one year previously. Government consumption decreased by 0.2 percent compared to the fourth quarter of 2010.

Imports and exports of goods and services grew by 0.6 and 0.4 percent respectively. The growth of imports and exports was significantly below the level of the third quarter. Exports of goods manufactured in the Netherlands dropped by 2.3 percent, whereas re-exports and exports of services were still up on one year previously.

Fixed capital formation was 2.9 percent up on the fourth quarter of 2010. Investment growth was lower than in the third quarter (5.0 percent). In the fourth quarter of last year, investments in cars and lorries were higher than one year previously.

Producers of goods generated 3.0 percent less output than one year previously. With 15 percent, output declined most substantially in the sector mineral extraction. Manufacturing output dropped by 0.8 percent. Output generated in the construction sector was up on one year previously, but with 0.8 percent, the growth rate was fairly modest.

Disposable for final expenditure and final expenditure (volume)

Disposable for final expenditure and final expenditure (volume)

More figures can be found in dossier Business cycle.