Economical overview
Foreign trade forms the basis of the Dutch
economy and benefits from its geographical location as a
natural transport hub in Europe. Trade dependence is
both direct and indirect: trade generates income while
the industry and parts of agriculture need raw
materials, not least as their own natural resources are
limited.
The Netherlands is one of the world's largest trading
nations. Both imports and exports of goods and services
each amount to more than two-thirds of the country's
gross domestic product (GDP).
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Countryaah.com:
Major imports by Netherlands, covering a full list of top products imported by the country and trade value for each product category.
A large part of the trade to and from the EU market
goes through the Netherlands. The port of Rotterdam is
the largest in Europe and one of the largest in the
world. Amsterdam Airport Schiphol is one of the most
important in Europe. For almost the entire post-war
period, the Netherlands has had significant surpluses in
trade with the rest of the world, both in terms of goods
and services.
Amsterdam is an important center for the trade in
tobacco, diamonds and precious metals. The Netherlands
also has significantly high foreign direct investment
and many foreign companies are located in the country.
About a tenth of all employees work for foreign
companies.
Trade benefits from an open economy, almost free of
customs and other barriers to trade. But it also makes
the economy extremely sensitive to fluctuations in the
world economy.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including NED which represents the country of Netherlands.
A recession shortly after the turn of the millennium,
the Netherlands hit harder than any other country in
Western Europe. Lack of labor had pushed wages and
inflation upward, and the country's competitiveness
gradually deteriorated. Important commodity exports
decreased when the recession began with force in 2002,
leading to economic decline and shrinking GDP.
Unemployment grew to the highest in 20 years, although
it was still low compared to other EU countries. During
the same period, the state budget was further burdened
by a rapidly rising number of long-term sick leave.
As so many times before in the Netherlands, the
government and trade unions in 2004-2005 agreed on a
compromise package with a halt for wage increases in
exchange for trade union influence over cuts in social
security systems. The compromise was fruitful and in
2005 the economy improved significantly with increased
GDP growth and reduced unemployment. Until 2007, the
good international economy also contributed to stable
economic development.
The Netherlands was then hit relatively hard both by
the global financial crisis that hit 2008 and the
eurozone debt crisis thereafter. The economy shrank in
2009, as in most industrialized countries. In the
Netherlands, growth then became positive only for a
couple of years, in 2012 and 2013, the economy shrank
again. Since then it has stayed above the zero line.
In order to mitigate the consequences of the crisis,
the government initiated a series of stimulus measures -
early infrastructure projects, increased export credits
and tax relief to companies, etc. In addition, large
sums went to save the vulnerable banking sector. All of
this contributed to a budget deficit that in 2009 and
2010 was above 5 percent of GDP. Only in 2013 was the
deficit down below the euro zone ceiling of 3 percent of
GDP.
A new cloud of concern for the economy surfaced when
the British voted in favor of leaving the EU in the
summer of 2016. According to the OECD Economic
Cooperation Organization, the Netherlands is one of
three countries most at risk of "Brexit", due to the
country's large trade exchange and extensive investments
in the UK (the others are Ireland and Luxembourg).
FACTS - FINANCE
GDP per person
US $ 53,024 (2018)
Total GDP
US $ 913,658 million (2018)
GDP growth
2.6 percent (2018)
Agriculture's share of GDP
1.6 percent (2018)
Manufacturing industry's share of GDP
11.1 percent (2018)
The service sector's share of GDP
69.9 percent (2018)
Inflation
2.5 percent (2019)
Government debt's share of GDP
52.4 percent (2018)
Currency
euro 1
Merchandise exports
US $ 574,585 M (2018)
Imports
US $ 487 245 M (2018)
Current account
US $ 99,063 million (2018)
Commodity trade's share of GDP
150 percent (2018)
Main export goods
machinery, transport equipment, chemical products,
natural gas, food
Largest trading partner
Germany, Belgium, France, UK, China, Italy
- 1 euro = 100 cents
2006
November
New elections are held
November 22
The government parties have a headwind when new elections are held, mainly
due to the economic downturn. CDA loses three seats but remains the largest with
41 seats. The VVD backs 6 seats to 22. The D66 halves from 6 seats to 3. The
Labor Party makes another poor choice and shrinks from 42 seats to 32. The
Socialist Party advances from 9 to 26 seats. A newly formed xenophobic party,
the Freedom Party (PVV), gets 9 seats and enters the parliament, while the old
LPF (now converted to List five Fortuyn, LVF) lapses. For the first time, a
party for animal rights also enters a European parliament.
July
Balkenende forms a minority government
Prime Minister Jan Peter Balkenende continues to rule at the head of a
government consisting of the ministers from the CDA and the VDD.
June
The government is cracking down again
The government falls when D66 jumps off the collaboration in protest against
the handling of the Ayaan Hirsi Ali case (see May 2006). This is happening
despite the fact that the Minister of Migration Verdonk changed before the
impending government crisis, saying that a loophole in the law was found that
allows Hirsi Ali to stay in the country. But a distrust vote is announced and
D66 supports it.
May
Controversy surrounding the MP
A Somali-born MP, Ayaan Hirsi Ali, resigned after it was revealed that she
had submitted false information in connection with her asylum application in
1992. Hiris Ali is known, among other things, as a screenwriter for van Gogh's
film Submission (see November 2004). Migration Minister Rita Verdonk, who, like
Hirsi Ali, is a member of the VVD, demands that her citizenship be withdrawn.
February
Increased efforts in Afghanistan
Decides that the Dutch force in Afghanistan of over 600 people should be
increased to 1 600 men; The force is part of the NATO-led international ISA
force. The soldiers are to be placed in the troubled area of Uzurgan.
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