Economy - overview: The Netherlands is a prosperous and open economy depending heavily on foreign trade. The economy is noted for stable industrial relations, moderate 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 no more than 4% of the labor force but provides large surpluses for the food-processing industry and for exports. The Dutch rank third worldwide in value of agricultural exports, behind the US and France. The Dutch economy has expanded by 3% or more in each of the last four years and real GDP growth is likely to be about 3.6% in 2001. The government in 2001 will implement its most comprehensive tax reform since World War II, designed to reduce high income tax levels and redirect the fiscal burden onto consumption. The Dutch were among the first 11 EU countries establishing the euro currency zone on 1 January 1999.

GDP: purchasing power parity - $388.4 billion (2000 est.)

GDP - real growth rate: 4% (2000 est.)

GDP - per capita: purchasing power parity - $24,400 (2000 est.)

GDP - composition by sector:
agriculture: 3.3%
industry: 26.3%
services: 70.4% (2000 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 25.1% (1994)

Inflation rate (consumer prices): 2.6% (2000 est.)

Labor force: 7.2 million (2000)

Labor force - by occupation: services 73%, industry 23%, agriculture 4% (1998 est.)

Unemployment rate: 2.6% (2000 est.)

Budget:
revenues: $134 billion
expenditures: $134 billion, including capital expenditures of $NA (2001 est.)

Industries: agroindustries, metal and engineering products, electrical machinery and equipment, chemicals, petroleum, construction, microelectronics, fishing

Industrial production growth rate: 3.2% (2000)

Electricity - production: 85.294 billion kWh (1999)

Electricity - production by source:
fossil fuel: 90.25%
hydro: 0.11%
nuclear: 4.27%
other: 5.37% (1999)

Electricity - consumption: 97.76 billion kWh (1999)

Electricity - exports: 3.97 billion kWh (1999)

Electricity - imports: 22.407 billion kWh (1999)

Agriculture - products: grains, potatoes, sugar beets, fruits, vegetables; livestock

Exports: $210.3 billion (f.o.b., 2000)

Exports - commodities: machinery and equipment, chemicals, fuels; foodstuffs

Exports - partners: EU 78% (Germany 26%, Belgium-Luxembourg 12%, France 12%, UK 11%, Italy 6%), Central and Eastern Europe, US (2000)

Imports: $201.2 billion (c.i.f., 2000 est.)

Imports - commodities: machinery and transport equipment, chemicals, fuels; foodstuffs, clothing

Imports - partners: EU 56% (Germany 18%, Belgium-Luxembourg 10%, UK 5%, France 6%), US 9%, Central and Eastern Europe (2000)

Debt - external: $0

Economic aid - donor: ODA, $3.5 billion (2000 est.)

Currency: Netherlands guilder (NLG); euro (EUR)
note: on 1 January 1999, the EU introduced the euro as a common currency that is now being used by financial institutions in the Netherlands at a fixed rate of 2.20371 Netherlands guilders per euro and will replace the local currency for all transactions in 2002

Currency code: NLG; EUR

Exchange rates: euros per US dollar - 1.0659 (January 2001), 1.0854 (2000), 0.9386 (1999); Netherlands guilders per US dollar - 1.9837 (1998), 1.9513 (1997), 1.6859 (1996)

Fiscal year: calendar year

NOTE: The information regarding Netherlands on this page is re-published from the 2001 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Netherlands Economy 2001 information contained here. All suggestions for corrections of any errors about Netherlands Economy 2001 should be addressed to the CIA.