Economic trends
For years, the Netherlands has had an advanced economy, combining high per capita income with a fairly egalitarian distribution of income. Nevertheless, the country was very strongly affected by the international crisis. The Netherlands has been in recession since the second quarter of 2008. GDP growth was negative in 2009 and it is expected that it will become positive again only from 2011. Highly dependent on foreign trade, the Dutch economy mainly suffers from the drop in global demand.
After having shown a rate of more than 2% in 2008, the inflation dropped in 2009 and is expected to stagnate until 2013. The unemployment rate is rising but remains at less than 5% of the active population. Public finances are in the red, over the European Stability and Growth Pact limit. The public deficit is at 3% of the GDP in 2009 and should reach 4% near 2010 and the public debt is expected to follow the same trend.
Main branches of industry
The agricultural sector represents 3% of the country's GNP. Harvests are high and the use of the agricultural surface area is very intensive. Nearly 60% of the production is exported, either directly or through the food industry. The main crops are cereals, potatoes and horticultural products.
Industrial activity generates nearly a quarter of the GNP through food-processing, the petro-chemical industry, metallurgy and also the transport equipment industry. The Netherlands is also amongst the major producers and distributors of oil and natural gas.
Services account for more than 70% of the national income and they are mainly centered on transport, distribution, logistics, banking and insurances.
International trade
The essence of Dutch prosperity is international trade. Its level of openness (import and export of goods and services on the GDP) is usually over the 100% mark, which makes it one of the most open and outward facing economy. Thanks to its geographical location, the Netherlands has the biggest European harbour at Rotterdam. The lack of natural resources and raw materials has turned it into a processing economy, with the manufacturing sector dependent on imported materials. Foreign trade has suffered a significant drop since the beginning of the crisis (-16% for exports and -13% for imports) but, with the high technology and services industries, it remains one of the main pillars of the economy.
The country's main trade partners are United States, the European Union and China.
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