With very low unemployment, a large and stable current account surplus, low government debt and a budget in surplus, the Dutch economy was assessed initially to be relatively well prepared to weather the financial and economic crisis. This view was reinforced when the Dutch economy seemed to remain comparatively unscathed by the overseas problems at the start of the crisis. Economic growth in 2007 remained robust at 3½%, which was above the euro area average of 2¾%. In 2008, however, the adverse effects of the financial crisis became more apparent and economic growth came to a grinding halt in the second quarter. Dutch strengths, like its funded pension system and its strong position in world trade, now turned out to be vulnerabilities in the wake of the crisis and have negatively impacted consumption and investment. However, when looking beyond the crisis at structural developments, the Netherlands is still in a relatively good shape, most importantly because of its flexible labour market and limited dependency on foreign capital.