In the third quarter, GDP contracted 1.1% in seasonally adjusted terms over the previous quarter, which represents the sharpest drop observed since Q2 2009. The reading contrasted the 0.1% expansion recorded in the previous quarter and widely exceeded market expectations, which had anticipated the economy contracting a softer 0.2%. On an annual basis, the economy contracted 1.6%, a deterioration over the 0.4% drop registered in the second quarter. The stronger-than-expected contraction came on the back of a worsening external sector as well as a depressed domestic sector. Total consumption deteriorated over the previous quarter, as private consumption contracted 0.6% quarter-on-quarter (Q2: -0.3% qoq) and government consumption dropped 0.1% (Q2: -0.2% qoq). In addition, gross fixed investment declined a sharp 3.1% over the previous quarter (Q2: -1.1% qoq). Moreover, the contribution from the external sector to overall economic growth deteriorated from plus 0.6 percentage points in Q2 to minus 1.2 percentage points. Exports of goods and services swung from a 2.6% expansion in the second quarter to a 2.4% contraction in the third, while imports contracted a softer 1.1% in Q3 (Q2: +2.1% qoq).
Economy contracts more than expected
November 15, 2012
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Netherlands GDP Chart
Note: Quarter-on-quarter changes of seasonally adjusted GDP and year-on-year variation in %.
Source: Statistics Netherlands (CBS) and FocusEconomics Consensus Forecast.
Netherlands Economic News
October 20, 2016
Dutch consumer sentiment rose markedly in October.
October 3, 2016
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, decreased marginally from 53.5 in August to 53.4 in September.
September 29, 2016
The producer confidence indicator, which measures Dutch manufacturers’ sentiment, increased from August’s 1.2 to 3.4 in September, according to the Central Bureau of Statistics (CBS), thus moving further above the 0-point threshold that separates optimistic from pessimistic sentiment. According to the CBS, the improvement reflected that producers had become more positive regarding order books and future output over the next three months but less positive about their stocks of finished products.
September 23, 2016
Dutch economic growth held steady in the second quarter of the year on the back of robust fixed investment, while lackluster performance in the external sector and subdued household and government consumption dragged on the overall result.
September 20, 2016
Dutch consumer sentiment improved notably in September.