Netherlands GDP

Netherlands

Netherlands: Economy slows in Q3

November 14, 2014

In the third quarter, GDP increased 0.2% in seasonally-adjusted terms over the previous quarter, according to the first estimate released by Statistics Netherlands on 14 November. The reading slightly undershot the 0.3% increase the market had expected and marked a slowdown compared to the 0.6% expansion recorded in Q2. According to Statistics Netherlands, Q3’s slowdown came on the back of a deterioration in both the domestic and external sectors.

Private consumption grew a meager 0.1% over the same quarter last year, which was down from the 0.4% increase observed in the previous quarter. Government consumption recorded flat growth in Q3, which was up from the 0.3% decrease tallied in Q2. On the other hand, fixed investment rebounded from a 2.0% contraction in Q2 to a 1.7% expansion, thus recording the fastest growth rhythm since Q4 2013.

On the external front, growth in exports of goods and services fell slightly from 1.6% in Q2 to 1.2% in Q3. On the other hand, imports of goods and services picked up pace and grew 2.0% in Q3, which was up from the 0.4% rise recorded in the previous quarter and marked the fastest increase since Q1 2011. Consequently, the external sector’s net contribution to overall economic growth fell from 1.0 percentage points in Q2 to minus 0.4 percentage points in Q3.

The government expects GDP to expand 0.75% in 2014 and sees growth picking up to 1.25% in 2015. For 2014, FocusEconomics Consensus Forecast panelists see GDP growing 0.7%, which is unchanged from last month’s projection. For 2015, the panel expects the economy to expand 1.4%, which is also unchanged from last month’s forecast.


Author: Teresa Kersting, Economist

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Netherlands GDP Chart


Netherlands GDP Q3 2014 0

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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