Netherlands: GDP growth swings back to expansion in Q2, backed by the external sector
August 14, 2014
In the second quarter, GDP increased 0.6% in seasonally-adjusted terms over the previous quarter, according to the first estimate released by Statistics Netherlands on 14 August. The reading was broadly in line with market expectations of a 0.5% expansion and marked a significant improvement over the 0.4% contraction recorded in Q1. According to Statistics Netherlands, the external sector largely accounted for Q2’s expansion.
On the domestic side, gross fixed investment fell 3.1% over the previous quarter (Q1: -1.7% quarter-on-quarter). Private consumption rose 0.2% in the second quarter (Q1: -0.7% qoq), while government consumption swung from the 0.9% expansion recorded in the first quarter to a 0.2% contraction in the second.
On the external front, exports of goods and services edged down from a 1.1% expansion in Q1 to a 0.6% increase in Q2. Imports of goods and services declined from 1.2% growth in Q1 to a 1.1% drop in Q2. Consequently, the external sector’s net contribution to overall economic growth rose from 0.0 percentage points in Q1 to 1.2 percentage points in Q2.