Netherlands Economic Structure

By: EconomyWatch Content   Date: 29 March 2010

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 The Netherlands economic structure runs on the principles of an open economy. The Netherlands is a prosperous economy that depends on foreign trade. Netherlands’ economic structure features a stable industry sector, low inflation and unemployment rate and an impressive current account surplus. According to the 2009 statistics, the current account balance is $33.72 billion.

Netherlands Economic Structure: Primary Sector

The service sector is the most dominant and biggest contributor to Netherlands’ economy. The service sector contributes as much as 73.7% to the GDP (2009 figures) and generates employment opportunities for 80% of the workforce (8.33 million).

 

The service sector includes financial services, transportation, goods distribution and tourism. The computer related industry is also a well developed segment for the sector. The telecommunication industry holds a lot of potential as well. The latest trend in the service sector seems to be mergers to consolidate resources and optimise usage.

 

Netherlands Economic Structure: Secondary Sector

Netherlands’ industrial sector is a well diversified segment with a variety of industries, such as petroleum refining, food processing, chemicals and electrical machinery. Other prominent industries are:

  • Agro-industries

  • Metal and engineering products

  • Construction

  • Microelectronics

  • Fishing

     

The industry sector contributes 24.4% to the GDP and employs almost 18% of the workforce. The government is taking steps to encourage the growth of new industries in areas that are economically depressed. Specific measures have been taken to encourage growth in biotechnology, aerospace industry and microelectronics. Being a huge economy, FDI keeps coming in and stood at $661 billions in 2009.

 

Netherlands Economic Structure: Tertiary Sector

 

The agriculture sector remains a well mechanised sector that employs almost 2% of the workforce and contributes to exports as well. The various goods that the sector produces are:

 

  • Grains

  • Potatoes

  • Sugar beets

  • Fruits

  • Vegetables

  • Livestock

     

However, as tourism and the demand for services decreased during the recession years, the unemployment rate grew from 4% to 5% in 2009. Investments remained low as well, at just 19.4% of the GDP. The government has, therefore, responded with more flexible norms and regulations. The stern financial policies have been abandoned and the government is accelerating the projects to gather some growth momentum.

 


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