A soft patch for the Netherlands.

The Netherlands is the seventh largest economy in Europe, and third in size in population among Western European countries (after Germany and France). In terms of per capita income, the Netherlands does well. Since 1997, the Netherlands has had a higher per capita income than its two richer Western European neighbors, Germany and France.

But as elsewhere in Europe, the Netherlands economy as a whole appears to be suffering from the same "soft patch" as other European Union (EU) countries.

In a May 13, 2005 press release, Statistics Netherlands, the country's national statistics office, reported that GDP grew less in the first quarter for the first time since 2003. The difference was small. First quarter results for 2005 showed GDP to be 0.3 percent lower than it was for the first quarter of 2004.

Also, with calendar and other adjustments, GDP for the first quarter of 2005 was 0.1 percent lower than GDP for the last quarter of 2004.

Statistics Netherlands blamed exports for the slight declines. Exports grew at only half the rate compared year-on-year with 2004.

Netherlands consumers were partly to blame also.

Households spent 1.0 percent less in the first quarter of 2005 than in the first quarter of 2004. Overall in 2004, consumers in the Netherlands spent more than they did in 2003.

The declines in 2005 spending were due to a fall off in durables purchases such as cars, furniture and consumer electronics. Statistics Netherlands said too, that when price changes were taken into account, consumers spent "a little less" for food, beverages and tobacco.

In a separate release on May 12, 2005, Statistics Netherlands said that retail sales were down in the first quarter as well. First quarter sales were 3.2 percent lower than the first quarter of 2004. The decline continued an eight quarter trend. Prices were down 1.0 percent, and volume declined 2.2 percent. Non-foods led the decline 4.5 percent to 1.7 percent for food. Consumer electronics outlets were especially hard hit with sales down 11 percent.

In March 2005, though, retail sales overall were up 1.6 percent, possibly because of the Easter holiday.

UNEMPLOYMENT IS BEGINNING TO BE A PROBLEM FOR THE NETHERLANDS

The population growth rate for the Netherlands is slightly above the low regional average, due in part to a birth rate of 12 per thousand inhabitants, which is above the average of 11 per thousand for Western Europe. Job creation has kept up with growth of the labor force in recent years, but the trend is moving upward toward increasing unemployment - running about 5.8 percent. This has an effect on consumer confidence.

The Netherlands's population reached 16-million people mid-2004, which amounted to just under 5 percent of Western Europe's 185-million inhabitants. According to data released by the Population Reference Bureau (PRB), the Netherlands's population will reach 17-million by 2025. Also, according to that source, the Netherlands is going to have a population of 18-million people in 2050.

The PRB revealed that a substantial 62 percent of the Netherlands's population lived in urban areas during 2004, and that the country's population density is a comparatively high 1033 people per square mile. The Netherlands is about the same size as Denmark in area but has nearly three times as many people. Another source of demographic data, the CIA's World Factbook, indicates that 18 percent of the Netherlands's population was birth to 14 years old in 2004, while 68 percent was 15 to 64 years old, and 14 percent of the populace was 65 years of age and over.

CIA statistics revealed that the country's population growth rate was 0.53 percent in 2004 and the net migration rate was 2.8 per thousand.

According to the United Nations Population Division, in the year 2050, 15 percent of the Netherlands's population will be birth to 14 years old, while 52 percent will be aged 15 to 59, and 33 percent of the populace will be 60 years of age and over.