2009 drop severest in Dutch economy since 1931

2009 drop severest in Dutch economy since 1931The Central Bureau of Statistics (CBS) reported on Friday that the Dutch economy shrank 4 per cent in 2009. This is the highest drop ever measured by CBS and The Netherlands' worst since

1931. The 2009 downturn surpassed the previous record drop of 3.6 per cent in 1931 during the world depression. The worst economic drop in the post-World War II era was 1.2 per cent in

1982.

The economy dropped 2.2 percent in the last three months of 2009.

But in a sign that the economy is beginning to right itself, the fourth quarter showed a 0.3 per cent rise over the preceding third quarter, for the second straight quarter-to-quarter growth. This

followed four straight quarterly drops.

With some 150,000 fewer vacancies in the final months of the year compared with the final quarter of 2008, the number of available jobs remained low.

Imports were down 5 per cent year-on-year in the final quarter of 2009, as were investments (down 14.3 per cent) and household consumption (down 2.6 per cent). Exports also remained weak, dropping 2.5 per cent.

The only factor which increased, during previous months, was government spending increased, rising 3.1 per cent.

(With Input from Agencies)