Netherlands Q1 GDP growth revised up slightly in second estimateStaff Writer | June 25, 2018
A second release for growth in the first quarter of this year, released on 22 June, showed GDP in the Netherlands expanded 0.6% quarter-on-quarter, above the preliminary 0.5% estimate but below Q4’s 0.9% expansion.
Europe Private consumption gained considerable steam
Private consumption gained considerable steam in the quarter on tight labor market conditions, rising wages and subdued inflation, expanding 1.5% quarter-on-quarter (Q4 2017: +0.2% quarter-on-quarter).
Fixed investment strongly rebounded amid favorable financing conditions and upbeat business confidence, logging a 2.7% increase over the previous quarter and contrasting the 1.1% drop in the fourth quarter of last year.
Government consumption growth also strengthened somewhat, from 0.2% in Q4 to 0.4% in Q1.
The external sector, meanwhile, dragged on growth, weighed down by cooling demand from the EU: Exports contracted 0.6% (Q4: +1.1% qoq), while imports continued to grow, albeit at a more moderate pace than in the previous quarter (Q1: +0.5% qoq; Q4: +0.9% qoq).
A year-on-year comparison showed that the economy accelerated marginally, expanding a revised 2.8% (previously reported: +3.0% year-on-year) in the first quarter compared to the revised 2.7% increase logged in the prior quarter (previously reported: +3.1% yoy).
The government expects the economy to grow 3.2% in 2018 and 2.7% in 2019.
FocusEconomics Consensus Forecast panelists, however, see GDP growing 2.8% in 2018, which is up 0.1 percentage points from last month’s projection. For 2019, the panel expects the economy to expand 2.2%. ■