This, combined with low real interest rates and a generous disposition by mortgage lenders, led to a sharp rise in housing prices. The withdrawal of the resulting equity on the value of home property gave a strong additional push to household expenditures. The decline also shows a few distinct features, most prominently the development of foreign trade.
In the past, a decline in the Dutch business cycle usually began with a fall in exports - which should not come as a surprise in such an open economy. This time, however, the downturn in exports was somewhat delayed, indicating that the current cyclical movement has been driven to a much larger extent than usual by domestic factors.