Dutch Economic Growth Rises In Q2

Sep 27, 2007 - Dutch economic growth in the second quarter stood slightly above the estimate, the Central Bureau of Statistics or CBS said Thursday.

Figures from Statistics Netherlands showed that the economy grew 2.6% year-over-year in the second quarter. First estimation showed that the economy would grow 2.4% in the second quarter.

Production in the care sector and goods sector increased higher than previously estimated, leading to an upward adjustment of 0.2 of a percentage point. Consequently, net exports and government consumption also grew in the second quarter.

At the same time, growth of re-exports and fixed capital formation were lower than previously estimated. Lower consumption of natural gas led to smaller increase in the household consumption, compared to 2006.

Consumer spending on durable goods such as consumer electronics and cars, and on hotels and restaurants and transport and communication maintained higher growth rate. Higher spending on care spurred on government consumption.

Among all sectors of industry, the construction industry had the highest production growth rate at 5%. Growth rate climbed 4% for commercial services and care sector.

Economic growth dropped slightly in the second quarter than in the same period in 2006 mainly due to a fall in production of natural gas. Due to this, growth for consumption by households and exports of goods declined. Other factors also resulted in a substantially lower growth of fixed capital formation.

Compared with the preceding quarter, economy grew 0.3% in the second quarter, which is slightly above the consensus of 0.2%. The CBS data showed that this is the lowest quarter-on-quarter growth for two years.