Macroeconomics
The Netherlands pursues a free trade policy and is an export-oriented economy. With its superior geographical location, good infrastructure and the Dutch people’s sense of innovation, the country’s economy has maintained a momentum of sustained growth for a long time. In the 1990s, the Netherlands experienced a long period of high growth. From 2000 to 2005, the Netherlands experienced a process of economic decline and recovery. From 2008 to 2009, the Dutch economy declined in the context of the global economic crisis, but it was still one of the EU countries with the most stable and improving economic development, and began to recover in early 2010. In the first three quarters of 2011, the Dutch economy maintained a growth trend, but the growth rate gradually slowed down, falling by 0.7% in the fourth quarter. Since the beginning of 2012, the overall performance of the Dutch economy has been sluggish and has continued to decline.
In 2006 and 2007, the Dutch economy grew strongly, with growth rates higher than the average growth rates of the Eurozone of 2.7% and 2.6%. Since 2008, the Netherlands has been significantly affected by the economic crisis and its economy has shrunk. In 2011, the total GDP of the Netherlands was 591.5 billion euros, a year-on-year increase of 1.2%. In 2011, agriculture accounted for 3.6% of the Netherlands’ GDP, industry accounted for 24.9%, and the service industry accounted for 71.5%.
Advantages of attracting investment
As the traditional “Gateway to Europe”, the Netherlands has unique advantages in attracting foreign investment. The Netherlands has a strong economy and a long history of trade. The Netherlands is the 16th largest economy in the world today, with a total GDP of US$783.413 billion. As a traditional trading power, the Netherlands’ leading position in global trade is also very stable. In the World Trade Organization’s 2012 global trade rankings, the Netherlands ranked 5th in export volume and 7th in import volume.
In addition, the Netherlands has an advantageous geographical location and a developed logistics network. Its consumer population within a radius of 500 kilometers reaches 170 million, accounting for almost half of the EU market. As the third largest port in the world, the port of Rotterdam handled 434 million tons in 2011. Lugang is responsible for 35% of the EU’s cross-border freight volume.
The country’s industrial technology and science and technology are at the forefront; education keeps up with the market and has obvious talent advantages; labor relations are stable, and the overall political and economic situation is stable; investment policies are open, and the fiscal and taxation system is leading. As an export-oriented economic country, the Dutch government attaches great importance to the role of foreign investment in the Dutch economy. Foreign companies investing in the Netherlands enjoy the same rights as local companies, and its tax environment is quite attractive to investors.
Production and demand
In the ranking of Dutch GDP sectors, industry ranks second, accounting for 24.2% and accounting for 18% of employment. The main industrial sectors include chemical industry, metallurgy, machinery manufacturing, etc. Food processing, chemical industry and machinery manufacturing are the three major industrial pillars of the Netherlands. Its electronic and electrical products, textile machinery, transportation machinery and other equipment and technologies are highly competitive in the international market.
In 2008, the Netherlands identified 15 markets with the greatest potential for cooperation, namely: Brazil, China, France, Germany, Gulf countries, India, Japan, Poland, Romania, Russia, Turkey, Ukraine, the United Kingdom, the United States, Canada and Vietnam.
From 2004 to 2008, sales in the Dutch domestic market maintained steady growth. Since 2009, affected by the economic crisis, retail sales of consumer goods in the Netherlands have fluctuated, reaching 434.5 billion euros in 2011. In 2011, the average household expenditure in the Netherlands was 31,497 euros, of which housing accounted for 34.8%, food accounted for 15.8%, clothing accounted for 5.8%, medical care accounted for 7.9%, transportation accounted for 16.7%, etc.
Industry and Trade
In 2011, the Netherlands’ total foreign trade volume was 765.8 billion euros, an increase of 9.3%, of which imports were 363.9 billion euros, an increase of 9.6%; exports were 404.6 billion euros, an increase of 8.9%. The Netherlands’ main trading partners include Germany, Belgium, the United Kingdom, France, China, the United States and Italy.
Since 2003, the Netherlands has maintained China’s second largest trading partner status in the EU. According to China Customs statistics, in 2011, the bilateral trade volume between China and the Netherlands was US$68.15 billion, an increase of 21.3% over the previous year. Among them, China’s exports were US$59.5 billion, an increase of 19.7%, and imports were US$8.65 billion, an increase of 33.6%. Dutch investment in China has shown rapid development momentum in recent years, mainly in the electronics, mining, petroleum and chemical industries.
Chinese investment in the Netherlands is still in its preliminary stages. In 2011, China’s non-financial direct investment in the Netherlands was US$168 million. By the end of 2011, China’s non-financial direct investment in the Netherlands was US$665 million.
