Netherlands Economic Growth Bring Rare Good News to Europe

(Bloomberg) -- The Dutch economy maintained a solid pace of growth at the end of 2019, offering some good news for Europe after a string of disappointing numbers.

The 0.4% expansion -- which is sustained all through 2019 -- beat the 0.3% median estimate of economists. Growth was driven by investments, consumption and the trade balance.

The figures come amid a new round of questions over Europe’s recovery. While an industrial slump has eased, manufacturing remains in a recession, and the coronavirus is adding to the threats.

The bad news may resume Friday with the publication of German GDP for the fourth quarter. While the numbers are backward looking, a contraction would add to concern about the underlying health of the euro area’s largest economy, and even the entire region.

There’s even a risk the economic pain will continue because of the virus outbreak. Deutsche Bank has even warned of a technical recession in Germany, extending the economy’s long run of underperformance.

--With assistance from Harumi Ichikura.

To contact the reporter on this story: Ruben Munsterman in Amsterdam at rmunsterman1@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Catherine Bosley

©2020 Bloomberg L.P.