Dutch 0.6 pct contraction in Q4 confirmed: statistics

27th March 2009, Comments 0 comments

The national statistics office confirmed its earlier prediction that the Netherlands’ economy has contracted 0.6 percent in the fourth quarter last year.

THE HAGUE – Economic growth in the Netherlands contracted 0.6 percent in the fourth quarter last year compared with the same period of 2007, the national statistics office said Thursday.

Output fell 1.0 percent from the previous quarter.

On 13 February, the agency said the economy had entered recession in the fourth quarter of 2008, posting its biggest decline since the beginning of the 1980s, attributing the slide to falling exports.

The agency at that time put the fourth quarter contraction at 0.9 percent compared with the third quarter and 0.6 percent against the year-earlier period.

This is the first decline of GDP in more than five years.

It said in its latest report that the value of exports declined 3.3 percent while investment fell 1.1 percent from fourth quarter 2007.

Dutch growth for all of 2008 came to 2.1 percent, according to the agency.

Meanwhile, the Netherlands' Central Bank has voiced concerns about the recovery period of the economy in its annual report.

Despite the predictions made by numerous analysts, the bank said it is "virtually impossible" to predict the impact of the crisis as new problems keep cropping up.

The report also states that the development of housing markets in several countries is crucial in their recovery. In United States, recovery is only possible until mortgage defaults and foreclosures are reduced.

AFP / Radio Netherlands / Expatica

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