Netherlands Economic Outlook
A trade and logistics powerhouse:
The Netherlands has one of the most open and export-driven economies in the world, thanks to its advanced infrastructure and strategic location in Europe. The Port of Rotterdam is Europe’s largest, serving as a key gateway for global trade, while Schiphol Airport plays a crucial role in international logistics. The Dutch economy is highly diversified, with strong sectors in agriculture, chemicals, electronics, and financial services.
Innovation and high-tech industry:The Netherlands is home to major multinational corporations like Philips, ASML, and Shell, with a strong focus on innovation and high-tech industries. The country is a global leader in semiconductor equipment manufacturing, advanced agricultural technology, and renewable energy solutions. Government policies have supported research and development, making the Netherlands a key player in European innovation.
Challenges and climate risks:The Netherlands faces economic challenges, including housing shortages, labor market tightness, and inflationary pressures. The country is also highly exposed to climate change risks, given its low-lying geography, necessitating continuous investments in flood defenses and sustainable infrastructure. Additionally, increasing EU regulations on energy and emissions could impact traditional industries like petrochemicals and logistics.
Netherlands’ economic forecasts:The Dutch economy is expected to continue growing, supported by strong trade, technology, and green energy investments. However, economic headwinds such as inflation, geopolitical uncertainty, and environmental regulations will require careful policy management. Strengthening housing availability, boosting digitalization, and maintaining global trade competitiveness will be key priorities in the years ahead.
Netherlands' Macroeconomic Analysis:
Nominal GDP of USD 1,225 billion in 2024.
GDP per capita of USD 68,372 compared to the global average of USD 10,589.
Average real GDP growth of 2% over the last decade.
Sector Analysis
In 2022, services accounted for 69% of overall GDP, manufacturing 12%, other industrial activity 17%, and agriculture 2%. Looking at GDP by expenditure, private consumption accounted for 44% of GDP in 2023, government consumption 25%, fixed investment 20%, and net exports 11%.International trade
In 2021, manufactured products made up 62% of total merchandise exports, mineral fuels 14%, food 15%, ores and metals 2% and agricultural raw materials 3%, with other categories accounting for 4% of the total. In the same period, manufactured products made up 62% of total merchandise imports, mineral fuels 18%, food 12%, ores and metals 3% and agricultural raw materials 1%, with other goods accounting for 4% of the total. Total exports were worth USD 723 billion in 2024, while total imports were USD 618 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 2.0% in the decade to 2024. To read more about GDP growth in Netherlands, go to our dedicated page.
Fiscal policy
Netherlands's fiscal deficit averaged 0.8% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 5.3% in the decade to 2024. For more information on Netherlands's unemployment click here.
Inflation
Inflation averaged 2.6% in the decade to 2024. Go to our Netherlands inflation page for extra insight.
Monetary Policy
Euro Area monetary policy rate ended 2024 at 3.15%, up from 0.05% a decade earlier. See our Netherlands monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the euro weakened by 20% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Netherlands
Sequential GDP growth halved from Q3 in Q4, chiefly due to a sharp drawdown in inventories. Meanwhile, private spending and fixed investment expanded at a quicker pace compared to Q3 on front-loaded car purchases ahead of a new tax regime on motor vehicles from 1 January 2025. Public spending growth and net trade also supported the overall reading. In Q1 2025, GDP growth likely remained underwhelming. That said, available data leaves scope for optimism. In January, industrial activity, retail sales and goods exports all improved from their respective Q4 levels, likely buoyed by lower ECB interest rates supporting domestic and external demand. That said, easing wage growth in January–February likely capped household budgets, and economic sentiment remained below the neutral threshold in Q1 as a whole on deeper consumer pessimism.Netherlands Economic Forecasts
Projections out to 2034.52 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 23 expert analysts.
Want to get insight on the economic outlook for Netherlands in the coming years? FocusEconomics collects projections out to 2034 on 52 economic indicators for Netherlands from a panel of 23 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Netherlands economy. To download a sample report on the Netherlands' economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.