Dutch economic growth highest in 5 years

11th May 2006, Comments 0 comments

11 May 2006, AMSTERDAM — The Dutch economy performed strongly in the first quarter of 2006, with gross domestic product (GDP) up by 2.9 percent on the year before. This was the highest growth rate in over five years.

11 May 2006

AMSTERDAM — The Dutch economy performed strongly in the first quarter of 2006, with gross domestic product (GDP) up by 2.9 percent on the year before. This was the highest growth rate in over five years.

"Employment is also increasing more rapidly, with 85,000 more jobs than a year earlier," Statistics Netherlands said on Thursday as it issued the first estimate of the quarterly accounts.

Exports contributed substantially to the economic recovery in the first quarter of 2006 and an increase in household consumption was another major impulse. Investments were up as well.

But the CBS characterised quarter-on-quarter growth was modest. The volume of GDP in the first quarter of 2006, corrected for calendar and seasonal effects, was 0.2 percent higher than in the fourth quarter of 2005. The first quarter of 2006 had two working days more than the first quarter of last year. 

"The 0.2 percent quarter-on-quarter growth is clearly less than in the previous three quarters. The quarter-on-quarter figures of the previous quarters were sometimes adjusted considerably by adding the new quarter, the bureau said.

In the first quarter of 2006 there were 85,000 more jobs than the year before, a 1.2 percent increase. Converted to full time equivalent jobs the growth rate is slightly lower (0.7 percent).

"The main cause of this difference is growth rate is the very strong increase in the number of temp jobs. People working for temp agencies often work part-time. After seasonal adjustment, the number of jobs in the first quarter was up by 0.6 percent on the fourth quarter of 2005. This shows that the job growth is speeding up," the report said.

[Copyright Expatica News + ANP 2006]

Subject: Dutch news

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