Netherlands GDP Q2 2016


Netherlands: Economic growth maintains pace of expansion due to fixed investment

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. Economic activity in the Netherlands rose 0.6% in seasonally-adjusted terms over the previous quarter, according to detailed data released by Statistics Netherlands on 23 September. The reading was in line with the preliminary estimate and matched the growth figure logged in the first quarter.

In the second quarter, fixed investment growth accelerated from 1.2% in Q1 to a revised 2.2% increase (previously reported: +2.5% quarter-on-quarter). Contrarily, private consumption eased from the 0.5% growth logged in the first quarter to a revised 0.1% expansion (previously reported: +0.2% qoq), while the pace of expansion of government consumption held steady in Q2 at Q1’s 0.7% increase.

On the external front, growth in exports of goods and services stalled, recording a flat result in the second quarter, which was below the 0.9% expansion registered in Q1. The reading was the lowest in three years. Imports of goods and services dipped to a 0.1% contraction, well below Q1’s 0.6% increase. As a result, the external sector’s net contribution to overall economic growth eased from 0.4 percentage points in Q1 to 0.1 percentage points in Q2.

The Netherlands’ economy expanded 2.3% in Q2 over the same quarter last year, which was notably above Q1’s annual 1.5% increase.

The government expects GDP to expand 1.7% both in 2016 and 2017. For 2016, FocusEconomics Consensus Forecast panelists see GDP growing 1.6%, which is unchanged from last month’s projection. For 2017, the panel expects the economy to expand 1.5%.

Author: Massimo Bassetti, Economist

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Netherlands GDP Chart

Netherlands GDP Q2 2016

Note: Quarter-on-quarter changes of seasonally adjusted GDP and year-on-year variation in %.
Source: Statistics Netherlands (CBS) and FocusEconomics Consensus Forecast.

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