Business
Oct 28, 2010
The Dutch economy is open and internationally oriented. For centuries, international trade has been a key element of the Dutch economic system.
Located in the delta where several major European rivers flow into the North Sea, Holland was ideally situated to become a centre of trade and transport for all of western Europe. The 17th century was the Golden Age of Dutch history, which is not surprising if you realize that Dutch ships carried 90%of all the goods in Europe.
Economy today
Today, international trade is still the main engine of economic growth in Holland. In fact, Holland is the 15th largest economy in the world and one of the world’s ten leading exporting nations. Holland’s most important trading partners are its neighbours Germany, Belgium, the UK and France. In 2007, Holland was the EU’s third largest exporting country after Germany and France. Furthermore, in Mexico Holland is the second country with the largest Foreign Direct Investments (FDI), after the U.S.A.
Rotterdam has the largest and most modern port in Europe and, until it was overtaken by Shanghai in 2004, the largest in the world. Amsterdam’s Schiphol Airport is one of Europe’s major airports, with almost 48 million passengers in 2007.
Main sectors
The Dutch economy is particularly strong in such sectors as the service industry, food products, flowers and the creative sector:
Service industry
The Dutch economy is making a shift from a production-based to a service-oriented economy. Nowadays, over 80% of Dutch economic activity is service-based. Holland is home to several internationally renowned banks, including ING and Rabobank, both of which are in the world’s top 20 companies in their branch.
Dutch banks generate half of their revenues outside Holland’s borders, which puts them among the most international banks in Europe.
Exporter of agricultural products
Holland is one of the world’s three largest exporters of agricultural produce. One fifth of all Dutch exports fall within the food products and flower sector. The flower sector owes its strong position to the climate, the availability of high-tech production methods and the proximity of 500 million consumers across Europe.
Creative industry
In recent years, Dutch Design has become an international phenomenon. From fashion to music and new media, the sector is filled with talent. The creative sector includes all activities whose core business is rooted in initiating creativity – i.e. the creation of meaning or symbolic value.
Currently there are around 150,000 people working in the Dutch creative industry, which represents a 34% rise since 1996. Eindhoven has become a centre for design and technology companies, while Arnhem’s focus is fashion.