Economy Down, more than Initial estimate

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Netherlands’ economy dropped more than the first estimate in the first quarter, according to Bloomberg Business Week.

The gross domestic product went down by 0.4 percent from the preceding three months, based on the last figures posted by the national statistics bureau in The Hague on its website today.

Business district in Amsterdam
Daniel Sparing/flickr

On May 15, all eight economists in a Bloomberg survey reported they anticipated the bureau would keep its first estimate of a 0.1 percent reduction.

Jacques van de Wal, head of the Dutch economic bureau at ABN Amro Bank NV in Amsterdam, said the figures mean the Dutch economy is experiencing a tougher period than they projected. “And we cannot say yet the lowest point is behind us,” he said.

The country is experiencing its third recession in four years. Prime Minister Mark Rutte’s coalition government is working on limiting its financial plan to a four-year €16 billion strict budget. Moreover, it has agreed on extra austerity measures of €6 billion for the European Union’s deficit limit of 3 percent of GDP next year.

In the first three months, jobs were down by 51,000 as opposed to the 34,000 approximation back in May. The other losses are mostly in services, trade and transportation sectors.