Economic Overview

The Netherlands is the sixth-largest economic power in the Eurozone and the fifth-largest exporter of goods. The country is very open to trade and consequently to the global economic conjuncture. Following strong growth in the post-pandemic years (+4.3% in 2022), the Dutch economy cooled down in 2023, with a GDP increase limited to 0.6% (IMF) amid a decline in export volumes and in actual consumption spending as households adjusted to the higher price levels. Throughout 2024 and 2025, growth should gradually accelerate thanks to a further decrease in inflation, combined with robust wage growth. With demand from key trading partners stabilizing, the contribution from net trade is also predicted to improve. Additionally, increased public consumption and investment are anticipated to contribute to overall growth. On the downside, tightening financial conditions and persistent labor shortages are likely to exert pressure on business investment growth in the coming years. Overall, the annual growth forecast is 1.2% for 2024 and 1.5% for 2025 (IMF).

In recent years the government’s fiscal policy has been expansionary; nevertheless, the Dutch public finances remained sound, recording budget surpluses. The trend inverted as a consequence of the fiscal measures taken to contain the Covid-19-induced crisis and then the effects of high inflation prompted by the conflict in Ukraine. In 2023, the general government deficit reached 1.9% of GDP driven by a package of measures to mitigate the impact of high energy prices (estimated at around 1% of GDP), partly counterbalanced by higher-than-expected revenue from corporate income tax, as well as lower public investment. The deficit is projected to hover around 2.5% of GDP in the forecast horizon, driven by an increased defence budget, and growing expenditure on interest, social benefits, and public investments. Despite the increase in expenditure, continued high nominal GDP growth contributed to a reduction in the government debt-to-GDP ratio, from 50.1% in 2022 to 49.5% in 2023. The IMF expects the ratio to further decline to 48.7% by 2025. After peaking in 2022, inflation came down sharply to 4.2% in 2023, thanks to a significant drop in energy prices. Due to the continued strength of wage growth and a robust labor market, HICP inflation, excluding energy and food, should gradually decrease closer to the ECB’s target over the forecast horizon (around 2.2% by 2025).

The Netherlands presents a very high income per capita, which is distributed in a relatively equal manner. The GDP per capita is above the EU average and was estimated at USD 73,317 in 2023 (PPP – data IMF). The Dutch labour market remains tight, with the unemployment rate standing at 3.7% in 2023, when nominal wages have been growing considerably (+6.2% according to the EU Commission). On the back of a slowing economy, the IMF expects the unemployment rate to increase slightly to 4.1% and 4.5% in 2024 and 2025, respectively.

Foreign Trade

Dutch prosperity has always been based on its international trade, and the geographic location of the country makes it a European trade hub, with Rotterdam being the largest European port and the third-largest in the world, handling over 465 million tons of cargo annually. With high-tech industries and services, foreign trade is one of the main pillars of the Dutch economy, representing an impressive 177% of GDP (World Bank – latest data available), one of the most open and outward-oriented economies in the world. According to data by CBS, 22% of exports in 2022 comprised mineral fuels; followed by machinery (20.1%), manufactured goods (19.2%), chemical products (17%), and food and beverages (11.9%). The country is also a major exporter of flowers and plants, with the horticulture sector being a significant contributor to the Dutch economy. Most of the sales are re-exportations as the country plays the role of a European trade hub; therefore, the same product categories led imports (mineral fuels accounting for 25% of the total, against 21.8% of manufactured goods and 20.9% of machinery).

As data by CBS show, Germany was the main destination in 2022, accounting for 24.5% of total exports, followed by Belgium (12.1%), France (8.1%), the UK (5.9%), and the U.S. (4.7%). Imports came chiefly from Germany (15.3%), Belgium (10.1%), China (9.5%), the U.S. (8.4%), and the UK (6.1%). On 1 September 2023 additional export control measures entered into force for advanced semiconductor manufacturing equipment. From that point on, the export of certain advanced semiconductor manufacturing equipment is subject to a national authorisation requirement.

The country has a structurally positive trade balance for goods and services, which stood at around 10.8% of GDP for 2022 according to the World Bank. The Dutch goods trade achieved unprecedentedly high import and export values in 2022: the value of exported goods stood at USD 966.7 billion (+15% y-o-y), with imports totalling USD 898.3 billion (+18.6%); whereas for commercial services exports stood at USD 272.9 billion (up by 8.6% y-o-y) and imports at USD 263.9 billion (+5.8% - data by WTO). The latest figures from the National Statistical Office show that in the first quarter of 2023 the import volume was 4% higher than the same period one year earlier, while that of export went up by 3.9%.

COVID-19 Country Response

Travel restrictions

Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.

Import & export restrictions

A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

The summary of the EU’s economic response to the COVID-19 pandemic is available on the website of the European Council.
For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) in the Netherlands, please consult the country's dedicated section in the IMF’s Policy Tracker platform.

Support plan for businesses

For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.