Economy Of Netherlands

Economy of Netherlands.
By: Santiago Celis
Grade: 9b
Webpage: CIA.GOV
The Dutch economy is the fifth-largest economy in the euro-zone and is noted for its stable industrial relations, moderate unemployment and inflation, a sizable trade surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, andelectrical 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. After 26 years of uninterrupted economic growth, the Dutch economy - highly dependent on an international financialsector and international trade - contracted by 3.5% in 2009 as a result of the global financial crisis. The Dutch financial sector suffered, due in part to the high exposure of some Dutch banks to U.S. mortgage-backed securities. In 2008, the government nationalized two banks and injected billions of dollars of capital into other financial institutions, to prevent further deterioration of a crucialsector. 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 5.3% of GDP in 2010 that contrasted sharply with a surplus of 0.7% in 2008. The government ofPrime Minister Mark RUTTE began implementing fiscal consolidation measures in early 2011, mainly reductions in expenditures, which resulted in an improved budget deficit of 3.8% of GDP. |
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GDP (purchasing power parity): |
$713.1 billion (2011 est.)country comparison to the world: 23$704.1 billion (2010 est.)$692.8 billion (2009 est.)note: data are in 2011 US dollars |
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GDP(official exchange rate): |
$840.4 billion (2011 est.) |
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GDP - real growth rate: |
1.3% (2011 est.)country comparison to the world: 1741.6% (2010 est.)-3.5% (2009 est.) |
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GDP - per capita (PPP): |
$42,700 (2011 est.)country comparison to the world: 17$42,400 (2010 est.)$41,900 (2009 est.)note: data are in 2011 US dollars |
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GDP - composition by sector: |agriculture: 2.7%industry: 24.2%services: 73.1% (2011 est.) |
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Labor force: |
7.809 million (2011 est.)country comparison to the world: 61 |
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Labor force - by occupation: |
agriculture: 2%industry: 18%services: 80% (2005 est.) |
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Unemployment rate: |
4.4% (2011 est.)country comparison to the world: 434.5% (2010 est.) |
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Population below poverty line: |
10.5% (2005) |
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Household income or consumption by percentage share: | |
lowest 10%: 2.5%highest 10%: 22.9% (1999) |
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Distribution of family income - Gini index: | |
30.9 (2007)country comparison to the world: 11132.6 (1994) |
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Investment (gross fixed): | |
18.6% of GDP (2011 est.)country comparison to the world: 112 |
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Budget: | |
revenues: $381.3billionexpenditures: $420.4 billion (2011 est.) |
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Taxes and other revenues: |
45.4% of GDP (2011 est.)country comparison to the world: 30 |
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Budget surplus (+) or deficit (-): |
-4.7% of GDP (2011 est.)country comparison to the world: 154 |
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Public debt: |
65.2% of GDP (2011 est.)country comparison to the world: 3862.9% of GDP (2010 est.)note: data cover general government debt, andincludes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment. Debt...