Dutch economic contraction lower after new calculation

Due to a new calculation method, the Dutch economy in the first quarter of 2014 shrunk less than what was calculated in May this year, the Dutch Central Bureau of Statistics (CBS) announced on Wednesday.
Recent economic developments, such as globalization and the rapid rise of the IT sector, have had a bigger impact according to new rules, leading to a different growth rate.
In May, the CBS said growth contracted by 1.4 percent in the first quarter of 2014. Based on new European Union (EU) directives and additional information, the contraction was estimated at 0.6 percent.
While the difference in figures can almost entirely be explained by the effects of the changed rules, a part of the lower economic contraction is caused by new information on business services and catering, the agency said.
New information showed that these sectors were more positive about the economy than previously thought.
The economic contraction was mainly caused by low gas consumption in the mild winter. CBS emphasized that one quarter of contraction does not affect the general recovery of the Dutch economy.
According to estimates earlier this month by the Dutch central bank DNB, economic growth will rise from 0.2 percent this year to 1.6 percent in both 2015 and 2016.