Highly skilled and educated work force. Sophisticated infrastructure. Large number of blue-chip multinationals, including Philips and Shell. Strong currency, linked to the German Deutsch Mark. Low inflation. Tradition of high-tech innovation, including development of the music cassette and CD.
Weaknesses
Costly welfare system, resulting in high taxes and social insurance premiums; one-third of national income spent on social security. High labor costs.
Profile
The Dutch economy is one of the most successful in Europe. Since the 16th century, trade has been of great importance. Today, imports and exports account for over 50% of GDP. Most goods travel through Rotterdam, the world's biggest port. In addition to high-tech sectors such as electronics, telecommunications and chemicals, the Netherlands has a successful agricultural industry. Productivity rates are high and agricultural products such as cheese, vegetables, meat and flowers are significant export earners.
The main concern facing the Dutch economy is high levels of borrowing. This is mostly accounted for by the generous welfare system. There are also fears that in the open European market, Dutch companies could lose business to foreign firms with lower labour costs and more flexible employment conditions.
