Domestic Demand in Netherlands

Netherlands Domestic Demand | Economic News & Forecasts

Netherlands - Domestic Demand

Dutch economy keeps a steady pace in Q1

Economic growth was steady in the opening quarter, growing 0.5% quarter-on-quarter to match the expansion recorded in the final quarter of last year. Compared to the same period a year earlier, growth fell to 1.7%, down from the 2.2% increase clocked in the final quarter of 2018.

The first quarter’s expansion was driven by resilient domestic demand, thanks to robust albeit softer fixed investment growth (Q1: +2.1% quarter-on-quarter; Q4: +4.0% qoq) and stock building, which could be linked to Brexit uncertainty. On the other hand, household consumption came to a near standstill, growing 0.1% over the previous quarter (Q4: +0.5% qoq). This was also despite robust retail sales turnover throughout the month and the labor market tightening even further. Moreover, private consumption was capped by a notable increase in inflation and a sharp deterioration in consumer confidence; in February, consumers were pessimistic about the economy for the first time in four years. Meanwhile, government consumption was stable at 0.5% in the quarter (Q4: +0.5% qoq).

The external sector dragged on economic growth, as the rebound in exports was outpaced by a stronger swing in imports. Exports of goods and services expanded 0.8% quarter-on-quarter, contrasting the 1.6% contraction in the final quarter of last year. Imports of goods and services, meanwhile, grew 1.6% over the prior quarter and this was chiefly due to services imports, with demand for goods virtually unchanged.

Going forward, the Dutch economy should continue growing at a steady, albeit more moderate, pace this year. A tight labor market is seen supporting private consumption growth in part through wage gains. The government’s slightly more expansionary fiscal policy should further boost the economy. Downside risks remain present on the external side, however, especially concerning the trade spat between the United States and China, an uncertain Brexit and U.S.-EU trade tensions.

FocusEconomics Consensus Forecast panelists see GDP growing at a softer pace of 1.7% in 2019, which is unchanged from last month’s projection. For 2020, the panel expects the economy to expand 1.6%.

Netherlands - Domestic Demand Data

2013  2014  2015  2016  2017  
Domestic Demand (annual variation in %)-1.4  0.9  3.4  1.8  2.3  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.

Download

Netherlands Facts

ValueChangeDate
Bond Yield0.155.70 %May 10
Exchange Rate1.120.65 %May 13
Stock Market544-0.57 %May 13

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

Search form