Netherlands

Capital: Amsterdam

Local time:
It is %T:%M %A in Amsterdam, Rotterdam

GDP growth rate: 1.5% in 2013

FDI stock: 589 825 million USD in 2010

Economic trends

The Netherlands entered into recession after the second trimester of 2008, the country was strongly affected by the international crisis due to its dependence on foreign trade.  Its GDP experienced a historic contraction of -4% in 2009. After the revival of global trade allowed the country to recover with a slow growth in 2010 (1.8%), growth again stalled in 2011 due to the fall in domestic consumption, stagnant housing market and especially the global slowdown penalizing exports. Suffering the effects of the crisis in the eurozone, the Dutch economy should enter recession in 2012.

The global economic crisis of 2008/2009 plunged public finance into the red, beyond the limits of the European Stability and Growth Pact. The government's priority is fiscal consolidation, with a goal of cutting the deficit to 3% of GDP by 2013. The government seeks to reduce spending, reform the welfare system and the financing of health care, unemployment benefits, public service and defense. The exemption system of mortgage interest payments, which weighs on public finances and creates high level of household debt, will also be revised. The implementation of reforms aimed at strengthening the financial sector and the management of an aging population is also crucial

The Netherlands presents high incomes per capita with an equal distribution of revenues.  The unemployment rate, which rose strongly since 2008, still remains at less than 5% of the active population.

Main branches of industry

The agricultural sector represents 3% of the country's GNP. The profits from production 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, what makes of the Netherlands the third exporter of agricultural products in the world. Cereals, potatoes and horticultural products are the main crops.
Industrial activity, practically, 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 transportation, distribution, logistics, banking and insurances.

International trade

The Dutch prosperity has always been based on its international trade. With high-tech industries and services, foreign trade is one of the main pillars of the Dutch economy, representing nearly 140% of GDP (average 2008-2010). The level of the country's trade openness (the share of imports plus exports of goods and services in the GDP) is usually over 100%, making it one of the most open and most outwards-oriented economies in the world. Rotterdam is the largest European port, thanks to its strategic geographic location.

The Dutch trade balance is structurally a surplus and this trend should continue, despite an expected decline in exports in 2012, due to the unfavorable global context.
The country's main trade partners are the European Union, the United States and China.