Dutch economy ends year with upbeat report

21st December 2005, Comments 0 comments

21 December 2005, AMSTERDAM — Dutch economic growth in the third quarter of 2005 was higher than previously estimated, Statistics Netherlands (CBS) said on Wednesday.

21 December 2005

AMSTERDAM — Dutch economic growth in the third quarter of 2005 was higher than previously estimated, Statistics Netherlands (CBS) said on Wednesday.

 The growth rate of the Dutch economy was 1.3 percent in the third quarter of 2005, according to the second estimate of the quarterly accounts by the CBS.

The growth of the gross domestic product (GDP) was 0.4 percent point higher than in the first estimate of 15 November. "GDP growth in the third quarter was mainly due to exports and recovering investments. Households and government consumption were also higher than in the third quarter of 2004," the CBS said.

The 0.4 percent point adjustment of Dutch economic growth is mainly due to an upward adjustment of government consumption. Government and care expenditure were both higher than previously estimated, the CBS said.

Furthermore investments, and to a lesser degree exports and household consumption are higher than in the first estimate. On the other hand, the imports increased.

From the production perspective, commercial services produced more than previously estimated. The production by the producers of goods, however, was slightly lower.

The CBS said the volume of the exports of goods and services in the third quarter was 5.0 percent higher than in the third quarter of 2004. The exports rose just a fraction less than during the first six months. The growth was almost entirely due to the re-exports of goods produced elsewhere.

Goods originally manufactured in, for instance, China, the USA and Taiwan are distributed via the Netherlands after having undergone a very limited, if any, amount of processing.

"The growth of the exports of goods produced in the Netherlands was very modest and clearly much less than in the first six months," the CBS said.

The growth rate of the imports (6.1 percent) was higher than those of the exports. The growth in imports is also mainly due to re-exports and also to the increase in domestic expenditure.

Households spent 1.2 percent more in the third quarter of 2005 than during the same quarter in 2004. "This is the highest growth rate since the first quarter of 2002," the report said.

Dutch consumers mainly spent more on goods, particularly durable consumer goods. Consumers bought more consumer electronics, furniture and clothes but spent less on new cars.

The volume of government consumption in the third quarter was 1.3 percent higher than in the third quarter of 2004. After eighteen months of reduced expenditure, the Dutch government again spent more on general public services. Also real expenditure on care and welfare recovered, the CBS said.

[Copyright Expatica News 2005]

Subject: Dutch news

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