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flag Netherlands Netherlands: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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.  The revival of global trade has allowed the country to recover with a slow growth drawn by the exports in 2010, estimated at 1.8%. 

The crisis plunged public finance into the red, beyond the limits of the European Stability and Growth Pact. The public deficit is estimated at 5.8% of the GDP in 2010, and the public debt is close to 65% of the GDP.  The priority of the government is to consolidate the budget and its objective is to bring the deficit to 3% of the GDP by 2013.  The government has established reforms intended to strengthen the financial sector and the management of the population's ageing is also essential.

The Netherlands presents high incomes per capita with an equal distribution of revenues.  The unemployment rate is rising but it still remains at less than 5% of the active population.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 795.89780.67858.28881.80900.55
GDP (Constant Prices, Annual % Change) -3.51.6e1.6e1.31.5
GDP per Capita (USD) 48,14846,986e51,410e52,58253,558
General Government Balance (in % of GDP) -4.4-4.5-3.4e-2.3-1.9
General Government Gross Debt (in % of GDP) 60.863.7e65.5e66.566.9
Inflation Rate (%) 1.00.92.52.02.0
Unemployment Rate (% of the Labor Force) 3.74.54.24.24.1
Current Account (billions USD) 38.7355.72e64.4768.0966.28
Current Account (in % of GDP) 4.97.1e7.5e7.4-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors 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.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 2.5 16.6 72.8
Value Added (in % of GDP) 1.7 23.9 74.4
Value Added (Annual % Change) 2.7 -6.8 -2.6

Source: World Bank - Last Available Data.

 
 
 
 
Learn more about Market Analysis about the Netherlands on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
74.7/100
Position:
Mostly free
World Rank:
15/179
Regional Rank:
6/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

The Dutch prosperity has always been based on its international trade.  Its level of openness (imports plus exports of goods and services) usually surpasses 100% of the GDP, which makes of its economy one of the most open and  foreign trade-oriented.  The Netherlands has the biggest European harbor at Rotterdam, thanks to its geographical situation. 

Foreign trade has experienced a significant drop during the crisis but due to its high technology industries and services, the Netherlands remains as one of the main pillars of the economy.  Exports as well as imports have revived in 2010 and the country should reach a small growth in 2011.  The country has a structural positive trade balance, a trend that should continue. 
The country's main trade partners are the European Union, the United States and China.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 416,832492,616580,937443,153516,732
Exports of Goods (million USD) 463,629550,755637,918497,891571,900
Imports of Services (million USD) 86,00897,393111,273107,522108,891
Exports of Services (million USD) 94,510109,084123,037111,352111,258
Imports of Goods and Services (Annual % Change) 8.85.63.4-8.5-
Exports of Goods and Services (Annual % Change) 7.06.4---
Imports of Goods and Services (in % of GDP) 65.166.068.462.0-
Exports of Goods and Services (in % of GDP) 72.874.276.669.2-
Trade Balance (million USD) 47,52557,41961,83651,06657,290
Trade Balance (Including Service) (million USD) 56,85269,62874,74958,92767,281
Foreign Trade (in % of GDP) 137.9140.2145.0131.2-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 24.3%
Belgium 11.1%
France 8.7%
United Kingdom 8.0%
Italy 5.0%
See More Countries 42.9%
Main Suppliers
(% of Imports)
2009
Germany 19.2%
Belgium 10.0%
United States 8.4%
China 8.0%
United Kingdom 6.4%
See More Countries 48.0%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 9.1%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 3.6%
Electrical apparatus for line telephony or line...Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 2.5%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.4%
Printing machinery used for printing by means of...Printing machinery used for printing by means of the printing type, blocks, plates, cylinders and other printing components of heading 8442 and ink-jet printing machines (excl. hectograph or stencil duplicating machines, addressing machines and other office printing machines of heading 8469 to 8472); machines for uses ancillary to printing, for the feeding, carriage or further processing of sheets or webs of paper; parts thereof 2.3%
See More Products 80.1%
Main Imports
(% of Imports)
2009
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 6.8%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 5.1%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 3.6%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.7%
Electrical apparatus for line telephony or line...Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 2.7%
See More Products 79.1%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Social Affairs and Employment
Ministry of Economical Affairs
Ministry of Agriculture and Fishery
Ministry of Finances
Statistical Office
Central Bureau of Statistics
Central Bank
Dutch National Bank
Stock Exchange
Amsterdam Exchange (AEX)
Search Engines
Search
AltaVista.nl
Excite.nl
Hotbot.nl
Ilse
Lycos.nl
NL-Menu
Surfboard NL
Track
Vindex
Wanadoo.nl
Zoek.nl
Economic Portals
EVD
KB
EVD
KB

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Political Outline

Executive Power
The chief of state is the Queen (visit the website of the royal family). Following parliamentary (lower house) elections, the leader of the majority party or leader of a majority coalition is usually appointed Prime Minister ( head of the government) by the monarch to serve a four year term. The Council of Ministers is appointed by the monarch on recommendation of the Prime Minister.
Legislative Power
A bicameral legislature. The parliament called States General consists of two chambers: First Chamber (upper house) and Second Chamber (lower house). The government has the right to dissolve the parliament, one or both the chambers.
Main Political Parties
- CDA (Christian Democratic Appeal) – Christian democrats,
- CU (Christian Union) - a orthodox reformed political party with more centre-left ideas,
- D66 (Democrats 66) - a progressive-liberal and radical-democratic political party,
- Green Left - an eco-socialist and anti-capitalist political party,
- PvdA (Labour Party) – a social-democratic political party,
- PVV (Party for Freedom) - a right wing party known for their hard stands on immigration
- SP (Socialistic Party) - a left wing party forms of the remainder of the communist party, extremely socialistic,
- VVD (People’s Party for Freedom and Democracy) - a centre-right, free market, liberal party.
Current Political Leaders
Queen: BEATRIX (since April 1980) hereditary
Prime Minister: Jan Peter BALKENENDE (since July 2002) CDA, heading a coalition government with the PvdA and CU until the next general elections in November 2010.
Next Election Dates
First Chamber: May 2011
 

Indicator of Freedom of the Press

World Rank:
4/178
Evolution:
3 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012