The Netherlands: Economy Overview

The Netherlands economy is noted for stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub.

Economy Overview

Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 3% of the labor force but provides large surpluses for the food-processing industry and for exports. The Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. The country has been one of the leading European nations for attracting foreign direct investment and is one of the four largest investors in the US. After 26 years of uninterrupted economic growth, the Netherlands' economy - which is highly open and dependent on foreign trade and financial services - was hard-hit by global economic crisis. Dutch GDP contracted 3.9% in 2009, while exports declined nearly 25% due to a sharp contraction in world demand. The Dutch financial sector has also suffered, due in part to the high exposure of some Dutch banks to U.S. mortgage-backed securities. In response to turmoil in financial markets, the government nationalized two banks and injected billions of dollars into a third, to prevent further systemic risk. The government also sought to boost the domestic economy by accelerating infrastructure programs, offering corporate tax breaks for employers to retain workers, and expanding export credit facilities. The stimulus programs and bank bailouts, however, have resulted in a government budget deficit of nearly 4.6% of GDP in 2009 that contrasts sharply with a surplus of 0.7% of GDP in 2008. With unemployment rising, the government of Prime Minister Jan Peter BALKENENDE is likely to come under increased pressure to keep the budget deficit in check while promoting economic recovery.

GDP (purchasing power parity):

$660 billion (2009 est.)
country comparison to the world: 22
$686.8 billion (2008 est.)
$674 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$794.8 billion (2009 est.)

GDP - real growth rate:

-3.9% (2009 est.)
country comparison to the world: 179
1.9% (2008 est.)
3.9% (2007 est.)

GDP - per capita (PPP):

$39,500 (2009 est.)
country comparison to the world: 21
$41,300 (2008 est.)
$40,700 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 1.6%
industry: 23.6%
services: 74.9% (2009 est.)

Labor force:

7.754 million (2009 est.)
country comparison to the world: 56

Labor force - by occupation:

agriculture: 2%
industry: 18%
services: 80% (2005 est.)

Unemployment rate:

4.9% (2009 est.)
country comparison to the world: 43
3.9% (2008 est.)

Investment (gross fixed):

18.9% of GDP (2009 est.)
country comparison to the world: 104

Budget:

revenues: $368 billion
expenditures: $409.9 billion (2009 est.)

Inflation rate (consumer prices):

1.2% (2009 est.)
country comparison to the world: 53
2.5% (2008 est.)

Commercial bank prime lending rate:

10.01% (31 December 2009)
country comparison to the world: 96
9.66% (31 December 2008)

Stock of domestic credit:

$2.083 trilion (31 December 2009 est.)
country comparison to the world: 11
$1.824 trillion (31 December 2008)

Agriculture - products:

grains, potatoes, sugar beets, fruits, vegetables; livestock

Industries:

agroindustries, metal and engineering products, electrical machinery and equipment, chemicals, petroleum, construction, microelectronics, fishing

Industrial production growth rate:

-8% (2009 est.)
country comparison to the world: 126

Oil - production:

57,190 bbl/day (2009 est.)
country comparison to the world: 61

Natural gas - production:

79.58 billion cu m (2009 est.)
country comparison to the world: 9

Current account balance:

$42.72 trillion (2009 est.)
country comparison to the world: 9
$41.93 billion (2008 est.)

Exports:

$417.6 billion (2009 est.)
country comparison to the world: 7
$531.7 billion (2008 est.)

Exports - commodities:

machinery and equipment, chemicals, fuels; foodstuffs

Exports - partners:

Germany 25.54%, Belgium 12.49%, France 9.27%, UK 8.17%, Italy 5.07%, US 3.97% (2009)

Imports:

$369.9 billion (2009 est.)
country comparison to the world: 9
$474.8 billion (2008 est.)

Imports - commodities:

machinery and transport equipment, chemicals, fuels, foodstuffs, clothing

Imports - partners:

Germany 17.16%, China 11.58%, Belgium 8.68%, US 7.77%, UK 5.72%, Russia 4.47%, France 4.4% (2009)

Debt - external:

$3.733 trillion (31 December 2009)
country comparison to the world: 5
$2.461 trillion (31 December 2008)

Stock of direct foreign investment - at home:

$671.6 billion (31 December 2009 est.)
country comparison to the world: 8
$638.8 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:

$843.7 billion (31 December 2009 est.)
country comparison to the world: 5
$821.2 billion (31 December 2008 est.)

Exchange rates:

Source: CIA - The World Factbook