Netherlands GDP Growth Up to 0.5%


The Dutch economy expanded 0.5 percent on quarter in the first three months of 2016, accelerating from a 0.3 percent growth in the previous quarter and matching market expectations, preliminary figures showed. It is the eighth consecutive quarter of growth and the highest performance in a year as consumption, investment and exports made positive contributions.

Year-on-year, the GDP advanced 1.4 percent, slowing from a 1.6 percent growth in the previous quarter but higher than market expectations of 1.1 percent. Private spending grew at a faster 2 percent (1.8 percent in Q4 2015), mainly due to spending on services such as catering, recreation and culture. Expenditure on services make up half of the total domestic consumer spending. Government spending went up 2.2 percent, rebounding from a 0.1 percent fall in the previous quarter while public investment grew at a slightly slower 1.2 percent (1.3 percent in Q4 2015).  Business investment remained resilient but grew at a lower 9.3 percent (11.9 percent in the previous quartet). Companies have invested more in vehicles including trucks, trailers, aircrafts, cars, homes, computers and software. In addition, exports (1.8 percent from 3.1 percent) and imports (3.4 percent from 5.1 percent) growth slowed. Companies sold more means of transport while shipments of gas, machinery and equipment shrank. As a result, net trade made a negative contribution to growth. 

CBS | Joana Taborda | joana.taborda@tradingeconomics.com
5/13/2016 9:23:04 AM