Articles, Blog

Inside Economy of Netherlands

August 22, 2019


The Netherlands, all along the history,
has been home to traders and merchants who were responsible for initiating
sea-way trade with Japan and China. The stock market was invented
and introduced by the Dutch via their trading in the
Dutch East India Company. Even though it was later replaced by the
British as the world’s trading nation, foreign trade is still the biggest reason for the
survival and growth of the Dutch economy. The first day of the year
2002 was the time when EU countries, including the
Netherlands, began using Euro. Since then, the Dutch haven’t
looked back financially. Basics of the Netherland’s Economy Being a free-market private system,
taxation and regulation by the government have a huge impact on
the economy of the Netherlands. The country is a founding member
of trade organizations like OECD, WTO, and EU, its 2018 GDP
(nominal) being $850 billion. In 2012, with a population of just
17 million, the country stood at the 18th place in the list
of world’s largest economies. The per capita GDP is around
$48,860, making Netherlands one of the wealthiest
countries in the whole world. Being an open and a very prosperous
economy, Netherlands holds its industrial relations well and has a very low
rate of inflation and unemployment. Even though the country
is small in size, it has a respectable current
account surplus. Also, the country houses Europe’s
biggest port, Rotterdam, and one of Europe’s biggest
airports, Amsterdam. The Netherlands’ industrial
activity predominantly includes: Chemicals High tech Food processing Petroleum refining Electrical machinery Creative services Financial services The agriculture in the country
is highly mechanized and employs only 2% of the
nation’s total labor force. Yet, large surpluses are
always available for exports and the
food-processing industry. Netherland’s Economic Past and Present Since the discovery of large natural gas
resources in 1959, the sale of those resources made the Netherlands government
richer by hundreds of billions of euros, thus creating a massive
budget for decades to come. Although, the large energy wealth caused
a slowdown in other industries of the country, which ultimately impacted the
economy of the Netherlands as a whole. The GDP or the annual economic growth
of the Dutch country was found to be more than 4% from 1996 to 2000,
which beats the European average. However, the economy experienced
significantly slower growth between 2001 to 2005, which was expected due to
the global slowdown of economies. Good news came soon in
2007 when the growth rate was recorded at 3.9%,
but the economy of the Netherlands received a
significant blow due to the then ongoing worldwide
economic crisis. In order to deal with the credit
crisis, the government of the Netherlands decided to abandon the
strict financial policy in 2009. They nationalized the large
banking sector partly. In 2011, the unemployment rate
was recorded at 5.0%, but it showed a sharp increase in May
20013 when it bumped up to 7.3%. As of March 2018, it dropped
again and was a decent 3.9%. The state budget surplus is expected
to grow significantly over this year.

4 Comments

  • Reply Pieter Greveling March 22, 2019 at 3:43 am

    Sjors is right
    !

  • Reply Rain Coast May 26, 2019 at 3:19 am

    AGRICULTURE. Currently sits as the worlds second largest food exporting nation, behind the USA.

  • Reply Pedro Botsaris June 30, 2019 at 5:27 am

    the airport is called Schiphol, not Amsterdam.

  • Reply Rients Dijkstra August 1, 2019 at 5:54 pm

    the images bear no relation to the story..

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