The Dutch economy saw a robust annual growth rate of 2.9 percent in the first quarter of 2006, the highest in over five years, said Statistics Netherlands (CBS) on Thursday.

Exports contributed substantially again to the economic recovery in the first quarter of 2006. The increase in household consumption was another major factor. Investments were up as well.

Employment were also increasing more rapidly, with 85,000 more jobs than the previous year, said the CBS. This represents an increase of 1.2 percent.

Exports of goods and services were up by 7.1 percent in this year's first quarter, compared to the 5.9 percent average of 2005. The growth is mainly due to re-exports. Dutch manufactured exports also grew substantially.

Households spent 2.9 percent more in the first quarter of 2006 than in 2005, the highest growth rate in years. People spent about 8 percent more on durable consumer goods.

Investments were also up by 3.4 percent over the same quarter of 2005, with more confidence in the recovery of investments. There was substantially more investment in dwellings and in computers. There was also more investment in machinery, trucks and commercial property, whereas investments were down in 2005.

After a slightly negative growth in 2005, industrial production is growing again, lifted by the manufacture of food and basic chemicals.

Source: Xinhua