Economic growth 2.6 percent in second quarter

The volume of the gross domestic product (GDP) was 2.6 percent larger in the second quarter of 2007 than in the same quarter of 2006. This almost equalled the growth in the preceding quarter, but is slightly less than the average in 2006. After correction for calendar and seasonal effects, GDP volume was up 0.3 percent on the first quarter of 2007.This quarter-on-quarter growth is the lowest for two years.

Nearly all across the board, growth slowed down. In the second quarter, the volume of exports of goods and services rose by 5.3 percent. Imports grew slightly more slowly, by  5.1 percent. Investment growth was severely curbed by occasional phenomena. Investments were 2.4 percent up on the second quarter in 2006.

Households spent 1.6 percent more than twelve months previously. The relatively modest growth was accounted for by a sharp drop in gas consumption, because of the mild weather conditions. The increase in spending on durable consumer goods, among which clothing, cars and consumer electronics, remained robust. The volume of government consumption was 2.7 percent up on the second quarter in 2006.

At over 5 percent, the construction sector showed the highest production growth. Production of commercial services and health care grew by 4 percent. After two bumper quarters, the growth pace in the manufacturing industry dropped considerably to 2.5 percent. Because of the mild temperatures, the production of natural gas was again much lower than last year, which had a noticeable downward effect on economic growth.

Disposable for final expenditure and final expenditure (volume)