Dutch Economy Grows 3.1 Percent in First Quarter

Economic growth in the Netherlands was 3.1 percent in the first quarter this year compared to the same quarter last year, according to initial estimates published Thursday by the Dutch central statistics bureau (CBS).

Quarter-on-quarter growth was only 0.2 percent, the lowest quarter-on-quarter growth rate in three years, the bureau said.

Compared to the first quarter of 2007, the volume of exports of goods and services climbed by 5.8 percent, while imports rose by 6. 4 percent.

Exports of 'Made in Holland' Dutch products grew by slightly more than 6 percent, largely reflecting a substantial increase in exports of natural gas. The growth in re-exports (goods produced abroad) slowed down slightly to 8 percent.

Consumer spending was up 2.2 percent from the first quarter of 2007. This was mainly the result of higher natural gas consumption caused by cooler winter weather than in 2007. The newly introduced compulsory contribution to medical insurance and high spending on food also pushed up consumer expenditure.

Government consumption was 1.2 percent up from a year ago, and investment spending was up 5.9 percent.

Mineral extraction contributed largely to economic growth, as more gas was sold both at home and abroad. The construction sector’s output rose by 6.1 percent, as it benefited from increased investment in company buildings.

Source: CRIEnglish