Dutch economy increasingly efficient

In 2006, output volume of the commercial sector rose by 3.7 percent. Total volume growth of the means of production used like labour, capital, energy, materials and services was only 2.5 percent. This implies that 1.2 percent of output growth was the result of efficiency improvements also termed multi-factor productivity growth. Efficiency growth exceeds the long-term average of 0.9 percent. Efficiency growth can be triggered by, for example, product and production process innovations, advantages of scaling-up of the production process and higher occupancy rates of production systems.

There are large differences between the various sectors. Between 1995 and 2006, output in construction, health care and welfare and other services lagged behind labour, capital and other means of production. In the sectors trade, hotels and restaurants and repairs and transport, storage and communication, efficiency improved notably.

Efficiency improvement Dutch economy, by sector