Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

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. For the past few years, the recovery in Europe had allowed the Dutch economy to grow at a dynamic pace, although trade uncertainty at the global level, the Brexit process and most of all the spread of the COVID-19 pandemic caused the Dutch economy to contract. Nevertheless, the country’s GDP rebounded in 2021 (+4.9%) and 2022 (+4.5%), on the back of solid export and investment growth (IMF). For 2023, a set of measures has been announced to mitigate the impact of high energy prices and support domestic demand. However, the decrease in households’ real disposable income, tightening financial conditions and the weak external environment caused by the Russia-Ukraine conflict are expected to weigh heavily on growth, which is forecast at 0.8% for the year. Rising investments and a positive contribution from external trade should help the country’s economy grow at a faster pace in 2024 (+1.7% - 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. Government revenues picked up in 2022 driven by income taxes and Dutch gas fields, contributing to a reduction in the fiscal deficit, which stood at 1.2% of GDP. In light of an expansionary budget that includes a price cap on electricity and gas, a reduction in the excise duty on fuel, and a rise of the minimum wage by 10%, the government deficit is forecast to increase to 1.4% of GDP in 2023 (IMF – 4% according to the EU Commission) and 2.1% next year. Similarly, the debt-to-GDP ratio is projected to increase from 50.3% of GDP in 2022 to 52.4% in 2023 and 53.2% in 2024 (EU Commission). Fueled by high energy prices, inflation reached a record level of 12% in 2022. The aforementioned price cap should contribute to a reduction in headline inflation, forecast at 8% in 2023, before the rate returns closer to the ECB’s target by 2024 (2.7%  IMF).

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 69,715 in 2022 (PPP – data IMF). The Dutch labour market remains tight, with the unemployment rate decreasing to 3.5% in 2022 (from 4.2% one year earlier). Nominal wages have been growing, although not as much as inflation. For 2023 and 2024, the IMF expects the unemployment rate to increase slightly to 3.9% and 4%, 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 156% of GDP (World Bank – latest data available), one of the most open and outward-oriented economies in the world. According to data by CBS, 24% of exports in 2021 comprised machinery, followed by manufactured goods (21%), chemical products (19%), food and beverages (13%), and mineral fuels (12%). 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 (machinery accounting for 25% of the total, against 24% of manufactured goods). In 2021, large enterprises exported over three times as much in terms of value as independent SMEs.

The share of total Dutch goods exports that went to Europe stood at 77% in 2021. As data by CBS show, Germany was the main destination, accounting for 23% of total exports, followed by Belgium (11%) and France (8%). Imports came chiefly from Germany (17%), China (10%) and Belgium (10%).

The country has a structurally positive trade balance for goods and services, which stood at around 10.3% of GDP for 2021 according to the World Bank. The Dutch goods trade achieved unprecedentedly high import and export values in 2021, and by the start of the year the Netherlands’ international trade in goods had already returned to its pre-crisis level. In the same year, the country’s exports of goods were worth USD 836.5 billion (an increase of 23.9% year-on-year), with imports growing at a faster pace (USD 758 billion; +27.1%); whereas for commercial services exports stood at USD 247.5 billion (up by one-third y-o-y), and imports at USD 236.7 billion (+40% - data by WTO). The latest figures from the National Statistical Office show that in the first quarter of 2022 the value of Dutch exports increased to EUR 196 billion (+22%), while the value of imports reached EUR 172 billion (+24%). Trade in services and goods increased by EUR 14.2 billion (+21.4%) and EUR 54.1 billion (+23.2%), respectively. As exports growth outstripped imports in absolute terms, the Dutch export surplus rose to EUR 23.7 billion.

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.