Netherlands: Substantially lower Q3 economic growth – ABN AMRO

Nico Klene, Senior Economist at ABN AMRO, points out that that the third quarter saw the Dutch economy grow by only 0.2% relative to the previous quarter (qoq) and was substantially lower than in Q2, although in line with average eurozone growth.

Key Quotes

“The 0.2% qoq rise in gross domestic product (GDP) was substantially lower than in Q2 (0.7% qoq), mainly owing to an unexpected drop in gross investment.”

“Another surprising aspect was the absence of a rise in government spending, while barely any increase was recorded in the second quarter either. So while the Dutch Coalition Agreement makes provision for a considerable boost in government spending, we have so far seen little evidence of any increase materialising.”

“The disappointing Q3 growth will impact on our GDP forecasts both for this year and next year. We have just reduced our forecasts for growth in the eurozone as well. We now expect the Dutch economy to grow by 2.5% or 2.6% in 2018 (previous forecast: 2.9%), while the forecast for 2019 has been cut from 2.5% to around 2%.”