Netherlands Economy - 2004

Economy - overview:
The Netherlands has a prosperous and open economy, which depends heavily on foreign trade. The economy is noted for stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 4% of the labor force but provides large surpluses for the food-processing industry and for exports. The Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. The country continues to be one of the leading European nations for attracting foreign direct investment. Economic growth slowed considerably in 2001-03, as part of the global economic slowdown, but for the four years before that, annual growth averaged nearly 4%, well above the EU average. The government is wrestling with a deteriorating budget position, and is moving toward the EU 3% of GDP budget deficit limit.

GDP:
purchasing power parity - $461.4 billion (2003 est.)

GDP - real growth rate:
-0.7% (2003 est.)

GDP - per capita:
purchasing power parity - $28,600 (2003 est.)

GDP - composition by sector:
agriculture: 2.6%
industry: 25%
services: 72.4% (2002 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 25.1% (1994)

Distribution of family income - Gini index:
32.6 (1994)

Inflation rate (consumer prices):
2% (2003 est.)

Labor force:
7.2 million (2000)

Labor force - by occupation:
services 73%, industry 23%, agriculture 4% (1998 est.)

Unemployment rate:
4.2% (2003 est.)

Budget:
revenues: $134 billion
expenditures: $134 billion, including capital expenditures of $NA (2001 est.)

Industries:
agroindustries, metal and engineering products, electrical machinery and equipment, chemicals, petroleum, construction, microelectronics, fishing

Industrial production growth rate:
-1.9% (2003 est.)

Electricity - production:
88.32 billion kWh (2001)

Electricity - production by source:
fossil fuel: 89.9%
hydro: 0.1%
other: 5.7% (2001)
nuclear: 4.3%

Electricity - consumption:
99.42 billion kWh (2001)

Electricity - exports:
4.209 billion kWh (2001)

Electricity - imports:
21.49 billion kWh (2001)

Oil - production:
46,200 bbl/day (2001 est.)

Oil - consumption:
895,300 bbl/day (2001 est.)

Oil - exports:
1.418 million bbl/day (2001)

Oil - imports:
2.284 million bbl/day (2001)

Oil - proved reserves:
88.06 million bbl (1 January 2002)

Natural gas - production:
77.75 billion cu m (2001 est.)

Natural gas - consumption:
49.72 billion cu m (2001 est.)

Natural gas - exports:
49.28 billion cu m (2001 est.)

Natural gas - imports:
20.78 billion cu m (2001 est.)

Natural gas - proved reserves:
1.693 trillion cu m (1 January 2002)

Agriculture - products:
grains, potatoes, sugar beets, fruits, vegetables; livestock

Exports:
$253.2 billion f.o.b. (2003 est.)

Exports - commodities:
machinery and equipment, chemicals, fuels; foodstuffs

Exports - partners:
Germany 25.1%, Belgium 12.7%, UK 10.7%, France 10.2%, Italy 6%, US 4.6% (2002)

Imports:
$217.7 billion f.o.b. (2003 est.)

Imports - commodities:
machinery and transport equipment, chemicals, fuels; foodstuffs, clothing

Imports - partners:
Germany 17.9%, Belgium 9.7%, US 9.1%, UK 6.9%, France 5.5%, China 5.1%, Japan 4% (2002)

Economic aid - donor:
ODA, $3.3 billion (2002 est.)

Currency:
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Currency code:
EUR

Exchange rates:
euros per US dollar - 0.89 (2003), 1.06 (2002), 1.12 (2001), 1.09 (2000), 0.94 (1999)