Dutch economy still growing strong
The Dutch economy continues to grow strongly and economic growth is even accelerating, according to Statistics Netherlands. In the second quarter the Dutch economy grew by 0.7 percent compared to the first quarter of this year. The stats office attributes the accelerating growth to foreign trade and higher investments.
Compared to the second quarter of last year, the Netherlands' gross domestic product grew by 2.9 percent, mainly due to Dutch companies' expenditure and increased export. But as the second quarter of 2018 had one more working day than the second quarter of 2017, this growth was adjusted to 2.7 percent.
Consumers spent 2 percent more in the second quarter of this year compared to the same quarter last year. More cars and electrical equipment were bought. Consumers also spent more in the hospitality industry and on transport and communication services. According to Statistics Netherlands, the rising expenditure is due to growing employment and recovery in the Dutch housing market. Consumer spending has been rising for 17 quarters in a row and consumer confidence has been high since the end of 2016.
Exports fell in June, but still contributed positively to the economic growth throughout the second quarter. Companies especially exported more machines and means of transport. The exports of goods and services increased by 3 percent in the second quarter.
Imports of goods and services increased by 2 percent. As this is lower than the exports growth, the export balance contributed positively to the economic growth. In the first quarter, the export balance still contributed negatively to economic growth.
According to Statistics Netherlands, the Dutch economy is doing well. All economic indicators are higher than the long-term average. Especially the consumers confidence indicator is well above average, despite a slight decline in the confidence in products.