Economy of the Netherlands
The economy of the Netherlands mainly focused on the secondary ( industry) and tertiary (service) sector.
General
The core elements of the Dutch economy are traditionally trade and distribution. Fisheries and Maritime form the historical basis for the development of foreign trade and industry. According to its history as a trading nation, the country has become the distribution hub for Europe. The Netherlands is since 1952 member of the European Union and in addition include the Benelux community, NATO and the United Nations.
The economic fundamentals of 2009 are as follows:
- GDP ( Gross Domestic Product): 569 billion euros
- GDP per capita: € 34,788
- Economic Growth: -4 percent
- Unemployment: Unemployed 420,000 = 5.5 percent
- Inflation rate: 1.2 percent
The Dutch Planning Office ( Centraal Bureau plan, CPB) expects slight growth in GDP of 1.5 percent for 2010. Unemployment was at 5.7 percent in February 2010 and should rise further to 6.5 percent, according to analysts. In March 2010, the inflation rate was 1 percent, showed a slight improvement over 2009 with 1.2 percent.
Economic Geography
The Netherlands is the most densely populated country in Europe. The population is concentrated in the Randstad, the area between the western cities of Amsterdam, Rotterdam, Utrecht and The Hague. The conditions of the Randstad as a driver for the Dutch economy are conceivable good: many delivered by sea goods are the two major ports of Rotterdam ( cargo handling 2009: 385 million tons ) and Amsterdam ( cargo handling 2009: 73 million tonnes) transported into the European hinterland. At the same time the capital Amsterdam is home to the Schiphol airport also has one of the largest international airports. 2009 was Schiphol with a cargo volume of about 1.3 million tonnes and 44 million passengers, the fifth-largest cargo airport in Europe. In addition to large goods transshipment points, the Netherlands has an efficient infrastructure, a highly skilled workforce and business-friendly approval procedures and a favorable regulatory environment.
Importance of individual industries
Agriculture
While the percentage share of agriculture in GDP is relatively small, yet it is an important factor in the Dutch economy. Due to the small area of the Netherlands, agriculture is very intensive. Factory farming and monocultures are the predominant forms. Through these intensification of the maximum yield can be achieved with the least possible effort. The disadvantage is the high pollution of the environment by this economy. High groundwater pollution and eutrophication are the consequences. Also the quality of many herbal products suffers from the leaching of soils with respect to vitamin and nutrient content
In agricultural terms, the Netherlands is an exporter. The food exports exceed imports ( mainly cereals and fruits) significantly. The main product is pork. The Netherlands is one of the largest exporters of pork. After the U.S., the Netherlands is the second largest exporter of agricultural products worldwide. The utilized agricultural area in the Netherlands is divided into the following areas: 50 % percent is pasture, 40% percent grow crops and about 10% for cut flowers, a typical product of the Netherlands used. In the cities tentatively also multi-storey industrial farms are operated, where pigs and chickens are kept.
Forestry and Fisheries
While the fishery continues to have a high priority in the Dutch economy, forestry is virtually non-existent due to lack of forests.
Mining and Energy
The Netherlands is actually a resource- poor country, with one exception: natural gas. Of this, it has large deposits and could, after their discovery in the 1950s, set the coal production. In the 1990s, the wind energy in the energy sector has become increasingly important.
Industry
Industrial production won in the Netherlands after the Second World War in importance. The heavy industry became not the important position it occupied in neighboring European countries, in the Netherlands. After 1945, the manufacturing sector grew rapidly, particularly in the field of chemistry - and electronics industries. Other important sectors were food and beverages, tobacco products, building materials, ships, refined petroleum, rubber and plastic products and printing products.
Banking
The banking system is an important part of the Dutch economy. Above all, Amsterdam is an international banking center.
Tourism
The Netherlands is an attractive destination. Main attractions are the windmills, fields of flowers, museums and cities, is particularly popular among other Amsterdam. Each year more than three million tourists to the Netherlands.
Infrastructure
The Netherlands has a well developed road network. For example, the motorway network of the country one of the densest and most expanded most in the world. This also applies to the rail network, which is everywhere present. Above all, however, for shipping the Netherlands is very low. Thus the country is firstly to several large estuaries (Rhine or Waal, Maas, Lek, Scheldt ) and also has a well-developed canal network, which can be also used by larger vessels. For trams, buses and some regional rail services, there is a nation-wide zone fare system (National vervoerbewijzen NBI). When people transport plays the bicycle, fiets called, still play an important role. The flat land benefiting this circumstance.
Foreign trade
Germany is the main trading partner of the Netherlands. Approximately a quarter of the total Dutch exports (including re-exports ) goes into the Federal Republic. The supposedly small Netherlands stand with a trade turnover of 129 billion Euros (2009) in bilateral trade behind France in second place of the German partner countries. The Federal Republic is 54.4 billion euros as the main exporter towards the Netherlands.
The economic developments in Germany therefore have a major impact on the Netherlands. The Dutch Export responds quickly to cyclical fluctuations in the neighboring country.
The Netherlands export mainly food, flowers, machinery, chemical products, and natural gas. Imports of fruit and grain, oil and vehicles. The Netherlands has a slightly positive balance of trade, ie exports exceeds the value of the imported products.