Economic decline

The Dutch economy contracted by 0.6 percent in the fourth quarter of 2008. For the first time in over five years, GDP volume was down on one year previously.

The Dutch economy shrank by 1.0 percent relative to the preceding quarter. For the third time in a row quarter-on-quarter-growth was negative and this was the most substantial economic contraction since the early 1990s.

The rate of Dutch economic decline is mainly caused by the sharp drop in exports. The volume of exports of goods and services was 3.3 percent down on one year previously. Exports of products manufactured in the Netherlands plummeted. The level of re-exports hardly changed. Typically, exports of services were higher than in the fourth quarter of 2007. Imports of goods and services decreased by 0.3 percent.

Fixed capital formation decreased by 1.1 percent after a strong growth in the first three quarters. Household spending on goods and services rose by 0.7 percent. Consumption growth is also slowing down. The volume of government consumption was 2.4 percent up on the last quarter of 2007.

Production of goods manufacturers was 3.9 percent down on one year previously. Production of commercial service providers equalled the level in the fourth quarter of 2007. Output of non-commercial services grew by 2.4 percent.

Disposable for final expenditure and final expenditure (volume)