Trade with the Netherlands
The Netherlands has a highly developed economy with a per capita GDP comparable to Canada's. As the country is not richly endowed with natural resources (with the notable exception of natural gas) the key to Dutch prosperity is foreign trade. The country's geographical position at the hub of Europe's transportation system and the small size of its domestic market have encouraged the Dutch to make their economy one of the most open and outward-looking in the world. More than two thirds of the Netherlands' foreign trade is with EU members, with Germany alone accounting for a quarter of total Dutch trade volume.
Aided by close cooperation between labour, management and government, an approach dubbed the "Polder model," the Dutch economy is enjoying a period of high economic growth, expanding 3.9% in 2000. Gross domestic product has risen approximately 4% every year since 1996, with domestic demand and export growth both contributing to the rapid expansion. The government recorded a budget surplus equal to 2.1% of GDP in 2000, which has brought the national debt below 57 % of GDP, while household expenditures have grown substantially and consumer confidence has been robust. A significant package of income tax cuts was also introduced January 1, 2001.
Consumer price inflation was 2.6% in 2000 but is expected to reach nearly 4% in 2001. Property prices have risen steeply in recent years. Registered unemployment has fallen to 2.6%, and there are about as many unfilled job vacancies as there are unemployed. Unemployment figures may be somewhat misleading, however, due to the Dutch practice of classifying many unemployed as "unfit for work," which means they are not counted in the figures.
Visit the office of the Trade Commissioner Service in the Hague.
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