the netherlands is a country located in western europe and it's the largest country in the kingdom
of netherlands the kingdom is also formed by aruba kurosawa and saint martin three islands in the
caribbean focusing on the main kingdom's country netherlands is bordered by germany to the east and
belgium to the south also sharing sea borders with the united kingdom with amsterdam as capital and
largest city by population netherlands has always been a land of trade it's a country well known for
their business talent throughout history since then the dutch economy has been following that
tradition becoming nowadays one of the most developed and innovative countries in europe
in the last report by the international monetary fund the country is the 17th biggest economy in
the world by 2021 gdp estimates at the moment of doing this video the country is led by mark
root the prime minister of the netherlands and the leader of the people's party for freedom and
democracy noting the status of the netherlands as a kingdom the biggest power remains in the hands
of willem alexander of the netherlands current king of the netherlands since 2013. after this
quick introduction in this video we're going to show you the numbers behind this european economy
if you like this series of videos about economies of countries don't forget to give it a like and
subscribe for more future videos you'll be able to find out all the resources used on this video
in the description to find out the most updated data keep in mind that with the week some data
of this video will get a little outdated so in any case make your own research for the
most recent estimations on the other hand the study will be done mainly for 2020 data
trying to add the most recent 2021 data available which in so many occasions still won't be released
gdp one of the first indicators we always start with on this kind of video is the gross domestic
product mostly known as gdp thanks to the data provided by the bureau of statistics netherlands
in 2020 the gdp at current prices by expenditure approach was 800 billion euros which with the
exchange at the moment of doing this video makes an approximation of 941 billion dollars
in the next graph you can see the evolution of the gdp by expenditure approach since 1995.
in the graph we also can see how the country since the 2009 crisis has grown by 25 percent which is
insane considering the small population of the country compared with europe's biggest economies
the last data available for the first quarter of 2021 talks about a gdp at current prices of
an estimated 201 billion euros which is almost exactly the same as the first quarter of 2020.
in the next graph you can see the evolution of the gdp's first quarter since 1995. population
according to the official government's data in 2020 the total population of the netherlands was
17.4 million the population is composed of almost a 50 50 ratio between males and females and has an
actual average age of 42.2 years an indicator which has grown constantly through the years
in the next graph you can see the evolution of the population in the last few years
together with some old years and the average age of the population in each of them gdp per capita
assuming the 17.4 million population estimation and the last gdp for 2020 we discussed before
we could estimate a gdp per capita for 2020 of 45 962 euros or approximately fifty four thousand
eighty six dollars on the actual exchange if we investigate the 2021 estimation for gdp per capita
thanks to the international monetary fund the netherlands is situated with fifty eight 000 at
the 13th position approximately by gdp per capita worldwide official currency moving forward to the
currency the official currency of the netherlands is the euro the netherlands is a founding member
of the european union and one of the first countries to adopt the euro on the 1st of january
1999. at the moment of doing this video with one euro you can get close to 0.85 the exchange in
the last 10 years has kept constant between the two most used currencies in the world public debt
the last data available by the netherlands bureau of statistics is from the first quarter of 2021.
as you can see in the table the total general government debt of the netherlands goes to 439
billion euros at face value or an estimate of 518 billion dollars almost all the debt are long-term
loans and debt securities with this data and the gdp we saw before we could estimate a debt
to gdp of 54.9 percent which is a moderate level of debt compared with the other european economies
in the next graph you can see the evolution of the general government debt in face value in the last
few years including the most recent data in 2019 the country had a debt to gdp of 48.5 percent but
due to the 2020 situation the debt went up quickly to the actual 54.9 percent public budget if we
focus on the public budget in 2020 the revenue of the netherlands government went to 351 billion
euros or an estimate of 414 billion dollars the last update is from the first quarter of 2021
where the government got 93.6 billion euros in revenue or an estimate of 110 billion dollars
on the expenditure side in 2020 the government spent 384 billion euros or an estimate of 450
billion dollars in the first quarter of 2021 the expenditure went to 96.6 billion euros in revenue
or an estimate of 114 billion dollars with this data and as you can see in the graph both 2020 and
the first quarter of 2021 had a deficit in their public budget obviously in the graph's oldest data
you can see how the government had a surplus in 2018 and 2019 which makes
this deficit probably a temporary extra cost to help the country after the difficult 2020.
agriculture sector in 2020 the last full year available agriculture forestry and fishing
generated 12.6 billion euros or an estimate of almost 15 billion dollars which means close to 1.8
percent of the entire gdp at current prices the agriculture sector of the netherlands since 2004
as you can see in the graph has always been a really small sector of the economy struggling
to surpass a two percent of the gdp in any of the years industry sector the second most important
sector of the netherlands 2020 gdp at current prices is industry representing 19.9 percent
of the entire gdp and generating 142.2 billion euros or an estimate of 167.3 billion dollars
in the graphic you can see the tendency of the industry since 2004 which looks a little
flat since 2008. for 2020 inside the industry sector manufacturing is the major sub sector
generating 86.1 billion euros which means almost 60.5 percent of the industry sector itself as you
can see in the graph the other major sub-sector is construction which generated 38.8 billion euros in
the first quarter of 2021 the netherlands industry generated an estimation of 38 billion euros
making this quarter the biggest first quarter in the last years as you can see in the graph
service sector finally and as expected the biggest sector of the gdp at current prices is services
with 78.3 percent of the gdp and generating 558.9 billion euros or an estimate of 657.5 billion
dollars as we have done with the other two sectors here is the graph since 2004 of the service sector
compared with the other two sectors the service sector is clearly growing constantly
as you can see in the graph in 2020 inside the service sector
the biggest sub sector is wholesale with 104 billion euros generated followed by health and
social work activities with 65.6 billion euros and finally business services with 58.7 billion euros
in the first quarter of 2021 the netherlands service sector generated an estimation of 138
billion euros decreasing a little from the same period a year ago
the netherlands is heavily dependent on the service sector and although it doesn't look
to be a problem by now it's also important for a country to don't forget their industry
tourism the netherlands government doesn't look to provide statistical information about tourism
if we check data provided by the world bank the netherlands had 20.1 million arrivals in 2019
after a massive increase since 2009 where they had almost half the arrivals of today
if the netherlands continues with this growth in 2022 assuming 2021 is not going to be a fair year
for tourism due to the restrictions the sector could become one of the main generators of the
netherlands economy inflation in june 2021 the consumer price index of the netherlands was 109.6
with the 100 mark occurring in 2005 which means a 9.6 percent increase in prices in six years
the year-to-year inflation in that same month has been two percent being the second biggest
inflation change in the last two years led by may 2021 with a 2.1 percent inflation
if this trend continues and the salaries don't grow in a similar percentage the dutch people
will start to lose purchasing power which for now doesn't look to be the case exports and imports
on the foreign trade side the trade balance of the netherlands in 2020 was a positive 57
billion euros if we checked the graph we could see how the netherlands is a clear producer country
with always a positive trade balance in the last few years making the netherlands products more
important for foreign countries than the netherlands depended on foreign products
continuing with the graph we can see how the 2020 exports were almost 483 billion euros
while the imports almost 425 billion euros both quantities with a slow decrease from 2019
in which the trade numbers of the netherlands had a clear growth tendency since 2015.
the most exported products in 2020 in order have been machinery and transport equipment
chemicals and finally food and live animals if we talk about countries the major export partners in
2020 were by order germany belgium and france the most imported products in 2020 have been
machinery and transport equipment followed by manufactured articles and finally chemicals
if we talk about countries the major import partners in 2020 were by order
germany china and belgium mining the low volume of the agriculture sector we could see how one of
the biggest surpluses of the foreign trade is in food and live animals which makes us think
that the efficiency of the netherlands makes them produce more than any country needs on this area
even with the small portion the sector represents to the economy itself the netherlands is also
one of the biggest exporters in europe which proves how good a business the dutch people are
netherlands bonds the netherlands is one of these countries who has a negative yield on their bond
which means that the asset is secure enough to make you pay instead of get profitability from
the asset but as we discussed in other countries who will want an asset that instead of bringing
you money makes you pay for it big companies such as insurance or big financial related corporations
could be interested in buying this kind of bond for asset allocation for example to mix it with
a riskier product making the total product a more secure one do you remember the subprime it would
be a similar thing as then netherlands taxes if we talk about the personal tax the netherlands
separate the tax into three types called boxes one for the salaries and similar which has the
progressive table you can see right now while on the other hand they have the box two for interest
with a flat rate of 26.9 percent and finally box 3 for savings and investments with 31 flat rate
on the other hand the standard corporate tax is 25 percent with different brackets and exemptions
unemployment the last data available for the unemployment rate was june 2021 with 3.2 percent
with this last data the netherlands continues improving the unemployment rate returning to
pre-lockdown levels the netherlands has been making an amazing job on the unemployment
rate in the last few years keeping a strong labor market conclusion with all the data we saw in this
video it looks hard to say something bad about the netherlands the country seems really well managed
with a small population compared with the other major economies of europe the netherlands is able
to face them in every single aspect being one of the major traders in europe and the world having
at the same time a high gdp per capita making the dutch people a really healthy one their only
weak point could be their huge dependence on the service sector but it's working perfectly for them
right now so it doesn't look like a bad decision if you like this video don't forget to give it a
like and subscribe for more future videos comment below what are your thoughts about the netherlands
if you know more about the netherlands economy or you're from the netherlands and want to add more
data let me know in the comments hope to see you in the next video and have a good day bye