According to the first calculation by Statistics Netherlands (CBS), based on currently available data, gross domestic product (GDP) fell by 1.7 percent in the first quarter of 2020 compared to a quarter earlier. That is the biggest contraction after the first quarter of 2009, when GDP fell by 3.6 percent from a quarter earlier. The contraction puts an end to 23 quarters in a row with growth. The decline in GDP in the first quarter is mainly due to lower household consumption.
Households spent 2.7 percent less in the first quarter than in the fourth quarter of 2019, which is the largest decrease since the start of the series in 1987. Government consumption decreased by 1.4 percent. Investments also fell by 1.1 percent. Finally, exports and imports of goods and services fell by 3.0 and 3.5 percent, respectively.
On the production side, the negative outliers stand out in the culture, recreation, sports and other services sector, the trade, transport, catering and storage sector, and the government, education and care sector. Production in these industries decreased by 7.1, 3.4 and 2.9 percent respectively from the previous quarter. A positive outlier was the construction industry with an increase of 5.5 percent.
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NAZALI TAX & LEGAL |