GDP growth rate 0.5 percent in Q2 2019

The rest of the news release deals with economic growth compared to Q2 2018.

GDP 2.0 percent up on Q2 2018

According to the first estimate, GDP was 2.0 percent up on Q2 2018. Growth was mainly due to higher investments in fixed assets, household consumption and the trade balance.

Q2 2019 had one working day more than Q2 2018. If GDP is adjusted for this effect, the GDP growth rate is 1.8 percent.

Higher investments in construction and machinery

In Q2 2019, investments in fixed assets were 5.3 percent higher than one year previously. Growth was slightly higher than in Q1 2019. Investments in dwellings, buildings, transport equipment (mainly aircraft) and machinery increased in particular.

Investment growth is partly related to the relatively high capacity utilisation rate of machinery and installations in manufacturing. At the start of Q3 2019, this rate again exceeded the average over 2018. Although producer confidence showed a year-on-year decline in Q2 2019, it was still far above the average over the past two decades.

Consumer spending up

Consumer spending was up by 1.7 percent in Q2 2019 relative to the same quarter last year. The growth rate was higher than in the previous quarter, when consumers spent 0.7 percent more year-on-year. In Q2 2019, consumers spent more on e.g. electrical appliances, clothing, home furnishing articles and services. Natural gas consumption increased as well; the second quarter of 2019 had slightly colder weather conditions compared to Q2 2018. However, consumers spent less on passenger cars again.

Mainly more exports of machinery

Exports of goods and services grew by 3.0 percent in Q2 2019. The growth rate is higher than in Q1 2019, mainly due to exports of services. Furthermore, Dutch companies exported mainly more chemical products, machinery and appliances. Re-exports (i.e. exports of imported products) grew while exports of domestic products declined.

Imports of goods and services grew less rapidly than exports, by 2.5 percent. As a result, the trade balance (net exports) made a positive contribution to economic growth. In Q1 2019, the contribution was negative.

Overall growth in both imports and exports is affected negatively by a large company relocating part of its business activities to another country. However, this does not affect the trade balance.

Strongest growth in energy production and construction

In Q2 2019, energy companies realised the strongest output growth: 6.2 percent. At 5.1 percent, the construction sector also recorded strong growth again. The manufacturing industry recorded hardly any output growth relative to one year previously. The mining and quarrying sector again saw the largest decline.

First estimate

The first estimate is conducted 45 days after the end of a quarter and is based on information available at that moment. CBS provides a first picture of the state of the Dutch economy. After the first estimate, new data are continually pouring in, which are used to make new calculations. The second estimate on economic growth will be released on Monday 23 September. In absolute terms, the adjustment of the second estimate relative to the first estimate has averaged nearly 0.1 percentage points over the past half decade, with the two extremes ranging between - 0.1 and + 0.3 percentage points.

With each new estimate, CBS also recalculates the new seasonally adjusted figures of previously published quarters. This recalculation has not resulted in an adjustment of the previous quarters.