Netherlands: Revised GDP confirms recession
March 27, 2012
In the fourth quarter, GDP contracted a seasonally adjusted 0.6% over the previous quarter, which is up from the 0.7% preliminary estimate released on 15 February. The reading follows the 0.4% decline seen in the third quarter and thus confirms the Dutch economy is in recession. On an annual basis, the economy also contracted 0.6%, contrasting the 1.1% expansion registered in the third quarter. For the full year 2011, the economy grew an estimated 1.2%, slower than the 1.7% expansion recorded in 2010. Gross fixed investment contracted 0.5% over the previous quarter (previously reported: -1.0% quarter-on-quarter), which followed a 1.0% decline in the July-September period. At the same time, total consumption continued to be a drag on economic growth, as private consumption and government consumption contracted 0.9% and 0.1% respectively. The external sector, however, improved somewhat. Exports of goods and services stepped up from a 0.9% contraction in the third quarter to a softer 0.5% decline in the fourth, while imports swung from a 1.6% decline in the third quarter to a 0.4% expansion. The government expects the economy to contract 0.5% this year.