Dutch economy shrinks, 2012 looking bleak

15th November 2011, Comments 0 comments

The Dutch economy shrank by 0.3 percent in the third quarter compared to the previous one according to figures from the Dutch statistics office.

It is the first time since the second quarter of 2009 that the economy has shrunk on a quarterly basis. Preliminary prognoses predict 1.1 percent growth for the whole year.

Government spending fell slightly compared to a year ago. Cuts in defence and civil service jobs have brought spending down, while health costs increased.

Meanwhile households spent over 1 percent less than in the previous three months. Fewer cars were bought and less was spent on shoes and clothes. The poor summer meant less was spent in restaurants and bars.

On top of that, the reports warnings by Dynamic Credit that hundreds of thousands of mortgage holders could get into difficulties next year when their favourable interest rates expire, jobs are lost and people are hit by other economic measures.

© Radio Netherlands Worldwide

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