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The Economy Of The Netherlands Essay

702 words - 3 pages

The economy of the Netherlands is a wealthy, but small trading nation. The Netherlands has a population of 16.8 million and it accounts for 0.24% of the world’s population, 3.6% of the world’s exported goods and 0.9% of the world’s GDP. While the Netherlands hold the 18th spot of the largest economy, it is the world’s eighth largest exporter of goods. The economy of the Netherlands was badly affected by the Global Financial Crisis due to its open economy. As a member of the European Union, and therefore subject to the EU's debt, the Netherlands are limited in how it can tackle its economic problems and has chosen to implement austerity measures which are clearly not working.

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Despite attempts from the Dutch government to stimulate the jobs market, unemployment is expected to continue rising until the end of 2014.
Due to the Netherlands being an exporting country with a large financial sector and an open economy, it is very susceptible to changes and developments throughout the rest of Europe. This means that, if the European economy takes a turn for the worst, Dutch pensions, saving, employment prospects and exports will be affected. During the Global Financial Crisis, some European countries, including Ireland, Greece and Portugal, were hit hard and fell into both large national debts and budget deficits. These problems have greatly unsettled the financial markets in Europe, resulting in Investors losing confidence in those countries that have serious economic and financial problems. This is endangering Europe’s financial stability and while both the International Monetary Fund and the European Union have taken measures to try and tackle the debt crisis, address its underlying problems and ultimately prevent the crisis from escalating. These measures include both short term and...

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