Detailed Review of the Netherland’s Economy
Since the Netherlands was heavily dependent upon international demand and exports it was hit hard by the global financial crisis, with a recession of 4%. The Dutch economy has rebounded slowly due to minimal domestic consumption. The country is expected to grow by 0.9% in 2014.
Agriculture in the Netherlands accounts for 3% of GDP and 60% of its production is exported. Dutch agriculture is very intensive, producing mostly potatoes and cereals, and makes the Netherlands the third-largest agricultural exporter in the world. Food, petrochemicals, metallurgy and transport are all priority economic sectors and the Netherlands is one of the world’s largest producers of oil and gas. Services also occupy a major position in the country’s economy, with the most important areas being transport, finance and retail.
The Netherlands has one of the most open economies in the world and is largely dependent on its exports, a status that is symbolized by the port of Rotterdam, the largest in Europe. The country’s major trading partners are the United States, China and the European Union.
The Netherland’s Economic Strengths
- High-quality infrastructure.
- Qualified and productive workforce.
- Good location.
- Political stability.
- Well-developed financial sector.
The Netherland’s Economic Weaknesses
- High labour costs.
- Complex legislation.
- Relatively small market.