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Netherlands

NetherlandsEconomy Stats

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Overview:

The Netherlands economy is noted for stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs only 2% of the labor force but provides large surpluses for the food-processing industry and for exports. The Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. The country has been one of the leading European nations for attracting foreign direct investment and is one of the four largest investors in the US. After 26 years of uninterrupted economic growth, the Netherlands' economy - which is highly open and dependent on foreign trade and financial services - was hard-hit by global economic crisis. Dutch GDP contracted 3.9% in 2009, while exports declined nearly 25% due to a sharp contraction in world demand. The Dutch financial sector has also suffered, due in part to the high exposure of some Dutch banks to U.S. mortgage-backed securities. In response to turmoil in financial markets, the government nationalized two banks and injected billions of dollars into a third, to prevent further systemic risk. The government also sought to boost the domestic economy by accelerating infrastructure programs, offering corporate tax breaks for employers to retain workers, and expanding export credit facilities. The stimulus programs and bank bailouts, however, resulted in a government budget deficit of nearly 4.6% of GDP in 2009 and 5.6% in 2010 that contrasts sharply with a surplus of 0.7% of GDP in 2008. With unemployment weighing on private-sector consumption, the government of Prime Minister Mark RUTTE is likely to come under increased pressure to keep the budget deficit in check while promoting economic recovery.
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Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Budget surplus > + or deficit > -: This entry records the difference between national government revenues and expenditures, expressed as a percent of GDP. A positive (+) number indicates that revenues exceeded expenditures (a budget surplus), while a negative (-) number indicates the reverse (a budget deficit). Normalizing the data, by dividing the budget balance by GDP, enables easy comparisons across countries and indicates whether a national government saves or borrows money. Countries with high budget deficits (relative to their GDPs) generally have more difficulty raising funds to finance expenditures, than those with lower deficits.
  • Debt > Government debt > Public debt, share of GDP: Public debt as % of GDP (CIA).

    No date was available from the Wikipedia article, so we used the date of retrieval.

  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition, by sector of origin > Services: This entry is derived from Economy > GDP > Composition, by sector of origin, which shows where production takes place in an economy. The distribution gives the percentage contribution ofagriculture, industry, andservices to total GDP, and will total 100 percent of GDP if the data are complete. Agriculture includes farming, fishing, and forestry. Industry includes mining, manufacturing, energy production, and construction. Services cover government activities, communications, transportation, finance, and all other private economic activities that do not produce material goods.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Figures expressed per capita for the same year.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI,Atlas method (current US$). GNI (formerly GNP) is the sum ofvalue added by all resident producers plus any product taxes (lesssubsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Inflation rate > Consumer prices: This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
  • Population below poverty line: National estimates of the percentage of the population lying below the poverty line are based on surveys of sub-groups, with the results weighted by the number of people in each group. Definitions of poverty vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
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STATAMOUNTDATERANKHISTORY
Budget >Revenues $358.40 billion2013 13th out of223
Budget surplus > + or deficit >- -4.1% of GDP2012 124th out of182
Debt >Government debt >Public debt, share of GDP 68.7 CIA2014 39th out of153
Exports $540.30 billion2012 7th out of189
GDP $772.23 billion2012 19th out of177
GDP >Composition, by sector of origin >Services 72.6%2012 36th out of189
GDP >Per capita $38,954.50 per capita2007 13th out of183
GDP > Per capita >PPP $41,500.002012 12th out of188
GDP >Purchasing power parity per capita $40,949.982010 10th out of181
GDP per capita $46,054.412012 14th out of177
Gross National Income $390.00 billion2001 13th out of158
Inflation rate >Consumer prices 2.8%2012 130th out of199
Population below poverty line 10.5%2005 10th out of11
Public debt 71.1% of GDP2012 36th out of149
Unemployment rate 5.3%2012 86th out of112

SOURCES:CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks2010,2011,2012,2013;Wikipedia: List of countries by public debt (List) (Public debt , The World Factbook , United States Central Intelligence Agency , accessed on March 21, 2013.);World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook2010,2011,2012,2013;CIA World Factbooks 18 December 2003 to 28 March 2011. Population figures fromWorld Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.;World Bank national accounts data, and OECD National Accounts data files. Population figures fromWorld Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.;CIA World Factbooks 18 December 2003 to 28 March 2011

Citation

NationMaster

Netherlands Economy Profiles (Subcategories)

Adjusted savings3Innovation42
Aid6Intellectual property6
Balance of payments28Interest payments3
Budget10International tourism14
Business5Investment3
Changes in net4Labor force3
Commercial service4Market capitalization of listed companies4
Commercial service imports4Merchandise4
Commitment to Development Index4Merchandise imports4
Companies28Micro4
Consumption10National accounts104
Currency15Natural gas8
Current account balance5Net capital account4
Current transfers4Net current transfers4
Debt52Net current transfers from abroad6
Economic aid3Net errors and omissions4
Economic growth8Net income4
Economic structure4Net income from abroad6
Electricity8Net trade in goods4
Entrepreneurship12Net trade in goods and services4
Exports3Oil10
External balance on goods and services7Portfolio investment4
Final20Poverty3
Financial sector26Poverty and inequality8
Foreign direct investment14Productivity7
GDP42Public expenditure4
GDP growth4Purchasing power parity11
GDP per capita4Reserves6
GNI12Retail3
Goods4Royalty and license fees8
Goods imports4Savings44
Government14Service4
Government debt4Service imports4
Government deficits and debt4Services10
Government spending5Spending73
Gross capital formation10Steel4
Gross domestic savings6Stock of direct foreign investment6
Gross fixed capital formation10Stocks traded5
Gross national expenditure9Support and aid4
Gross savings6Tax73
Gross value added at factor cost9Taxes3
High-technology4Total9
Household final23Tourism21
Income24Tourism expenditures5
Income distribution4Tourism receipts5
Income payments4Tourist arrivals by region of origin5
Income receipts4Trade1682
Inequality12Welfare5
Inflation10

    Factoid #148

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