The Economy of the Netherlands

Netherlands Economy

With a prosperous and open economy, the Netherlands depends mostly on foreign trade. The economy also enjoys stable industrial relations, low unemployment and inflation rate, the country being an important European transportation hub. Industrial activity predominates in food processing, chemicals, petroleum refining, and electrical machinery.

With a highly mechanized agricultural sector, the percentage of employs is less than 2% of the labor force. Even so, it does provide large quantities for the food-processing industry and also for exports.

As of January 1, the Netherlands, along with 11 of its EU partners, changed to euro currency, and the country is one of the top European nations to attract foreign investment.

The Netherlands is currently the 16th largest economy of the world, with the annual economic growth (GDP), between 1998 and 2000, at nearly 4%, high above the European average and in 2007, the yearly growth accelerated to 4.2%.

Netherlands inflation is estimated at 1.3% while unemployment in the Netherlands is estimated as the lowest of all EU members, at only 2.9%. The stern financial policies have made possible a deficit of roughly 0.3% of GDP in 2005, down from 2.1%, registered a year before. Netherlands services sector plays an important part in the country’s economy, and account for 75% of the total GDP, being followed by the industries sector.

The Gross National Income in US $ in 2004 has reached at 523.1 billions having a per capita of 32,130.0 in US $.

Netherlands Economy comes under the high-income made by OECD group countries as to the classification made by the World Bank, based on the income and region for the year 2006. The county has a total surface area of 41,530.0 square kilometers, with a total forest area of 3,600 square kilometers in 2000.

The country’s major agricultural products are fruits, vegetables, grains, sugar and livestock, while the important industries in the country are chemicals, construction, petroleum, chemicals, fishing, and construction. The country exports food, fuel, manufacturing, machines and equipments, to France, Germany, Italy, UK, AND Spain, and it imports items such as chemical, fuel, and clothing, from the US, China, Germany and Belgium.

As far as trade is concerned, the Netherlands has experienced balance of trade as well as balance of payment surplus over the past few years. Netherlands is part of the founding member of the International Bank For Reconstruction and Development and an important member of IDA and IFC.

I have studied economics for years and love to write about economic trends and conditions. I write for www.economywatch.com and www.economypedia.com.

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