Economy grows by 1.6 percent in the fourth quarter

The Dutch economy grew by 1.6 percent in the fourth quarter of 2005, compared with the fourth quarter of 2004. This increase equals second and third quarter growth. In the first quarter, the increase in gross domestic product (GDP) was still negative. The increase in fourth quarter GDP was mainly caused by increase in consumer spending and a growing trade surplus.

The fourth quarter had two working days less than a year previously. After correction for seasonal and working day effects, the volume of GDP was 0.8 percent higher in the fourth quarter than in the third quarter of 2005.

Consumption expenditure by households was 1.1 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 2.1 percent up in the fourth quarter.

The volume of exports of goods and services was 3.6 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 due to re-exports. The increase in imports lagged behind exports, at 2.5 percent. Fixed capital formation was 1.4 percent higher than in the same quarter of 2004.

Disposable for final expenditure and final expenditure (volume)