Economy grows by 1.6 percent

The Dutch economy grew by 1.6 percent in the fourth quarter of 2005, compared with the fourth quarter of 2004. In the first quarter the increase in gross domestic product (GDP) was still negative, in the second and third quarter it was 1.3 percent. The increase in GDP was mainly caused by increased consumption spending  and an increasing trade surplus.

After correction for seasonal and working day effects the volume of GDP was 1.0 percent higher in the fourth quarter than in the third quarter of 2005. This quarter-on-quarter growth was much higher than the average for the four preceding quarters.

Consumption expenditure by households was 1.3 percent higher than twelve months previously. This is the highest growth rate since the first quarter of 2002. Consumers spent more on durable consumer goods in particular in the fourth quarter. The volume of consumption expenditure by government was 2.3 percent up in the fourth quarter.

The volume of exports of goods and services was 3.7 percent higher in the fourth quarter than one year previously. This is a smaller increase than in the three preceding quarters. The increase in exports was largely accounted for by re-exports. The increase in imports lagged behind exports, at 2.3 percent.

Fixed capital formation was 1.0 percent higher than in the same quarter of 2004, continuing the slight recovery in investment spending.

Disposable for final expenditure and final expenditure (volume)