Netherlands: Economy rebounds in second quarter
September 25, 2014
In the second quarter, GDP grew 0.7% over the previous quarter in seasonally-adjusted terms, according to the second estimate released by Statistics Netherlands on 24 September. The reading came in above the 0.5% rise that had been reported in the first estimate on 14 August and that market had analysts expected. The reading contrasted Q1’s 0.3% contraction and represents the fastest pace of expansion since Q1 2011.
Q2’s expansion was mainly driven by a better performance of the external sector. On the domestic side, total consumption rebounded to 0.1% growth in Q2 (Q1: -0.2% quarter-on-quarter). Private consumption rebounded from Q1’s 0.8% drop to a 0.4% rise in Q2 while government consumption swung from the 0.9% rise tallied in the previous quarter to a 0.3% contraction in Q2. Gross fixed investment deteriorated further, falling 2.6% over the previous quarter (Q1: -1.7% quarter-on-quarter).
On the external front, exports of goods and services rose from a 1.2% expansion in Q1 to a 1.6% increase in Q2. Imports of goods and services declined from 1.4% growth in Q1 to a 0.3% rise in Q2. Consequently, the external sector’s net contribution to overall economic growth rose from 0.0 percentage points in Q1 to 1.1 percentage points in Q2.