The Netherlands Economy

The Netherlands Economy

The economy plays an important role in the Netherlands. It economy is open and successful. The Netherlands economy is known for stable industrial relations, a large current account surplus, little unemployment and inflation, and plays an important role in European trading. The Netherlands and eleven other EU partners started circulating the Euro currency on January first 2002. The country is one of the leading European nations for attracting foreign investment.

As of right now, the Netherlands has the sixteenth largest economy in the world. According cbs.com, between 1998 and 2000 its GDP averaged nearly four percent, which is above the European average. Rises in the GDP kept raising and in 2006, the GDP grew three percent. In 2007 it raised again 4 more percent. The Netherlands inflation rates have stayed at about two percent. A direct correlation could be made between the rising percents in its GDP with how well trade investments are in The Netherlands.

The Netherlands merchandise trades takes up about two-thirds of the countries GDP. This country has a positive balance of payments, for 2006 the payments closed in at about 31.5 billion (in euros). Leading export markets are Germany with 25.1%, Belgium has 12.2% and the United Kingdom and France both have 9.4%. As clearly shown from these percentages, Germany is by far the most important and largest country trading with The Netherlands.

There are also many other parts of the economy affecting the Netherlands. Services account for more than half of the national income; these are mostly in transportation, distribution, and logistics, A industrial activity, like mining, produces about twenty percent of the national product Other industrial activities include: metalworking, oil refining, chemical, and food-processing industries. Agriculture and fishing, although these are usual traditional activities