Netherlands: Economic growth confirmed in second quarter
September 24, 2012
According to revised data, GDP rose 0.2% in seasonally adjusted terms over the previous quarter, which confirmed the preliminary estimate released on 14 August. The reading followed the 0.2% expansion recorded in the previous quarter. On an annual basis, however, the economy contracted a revised 0.4%, up from the 0.5% drop previously estimated. Economic growth in Q2 came on the back of a stronger external sector, which compensated for a still depressed domestic sector. Gross fixed investment contracted 0.4% over the previous quarter (previously reported: -0.5% quarter-on-quarter), which followed a decline of the same magnitude in the January-March period. Simultaneously, total consumption fell a revised 0.4% over the previous quarter (previously reported: -0.3% qoq), as private consumption fell 0.3% while government consumption contracted 0.2%. Meanwhile, the contribution from the external sector to overall economic growth was revised up to plus 0.5 percentage points from the previous estimate of a 0.4 percentage-point contribution. Exports of goods and services accelerated from a 2.2% expansion in the first quarter to a 2.6% increase in the second (previously estimated: +2.1% qoq), while imports maintained the 2.2% pace of expansion seen in Q1 (previously estimated: +1.8% qoq). The government expects the economy to contract 0.5% this year.