The Netherlands is still in recession. In the first quarter of 2012, the Dutch economy shrank by 1.1 percent compared to figures from last year.
The Dutch Central Statistics Bureau released this information in a provisional estimate. When compared to the last quarter of 2011, the economy shrank by 0.2 percent during the first quarter of this year.
This means the Dutch economy has shrunk for three consecutive quarters. An economy is said to be in recession when it shrinks two quarters in a row. The Dutch economy was officially declared in recession in February, as a result of a poor showing during the third and fourth quarters of 2011, when the economy shrunk by 0.7 percent and 0.4 percent respectively.
Investment and jobs
A decrease in investment is the main reason for the shrinkage during the first quarter this year. Investment decreased by 4.2 percent when compared to a year ago. The construction sector was hit especially hard. A further decrease in household consumption strengthened the economic downturn. Consumers spent 1.1 percent less than a year ago.
There were also 13,000 fewer jobs in the first quarter of this year compared to the same period last year. In particular there are fewer business jobs. The Dutch economy did create more jobs in some sectors, including trade, transport, catering, health care and information and communication.
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