Economy - overview: The Netherlands is a prosperous and open economy in which the government has successfully reduced its role since the 1980s. 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 Dutch rank third worldwide in value of agricultural exports, behind the US and France. The Netherlands successfully addressed the issue of public finances and stagnating job growth long before its European partners. This has helped cushion the economy from a slowdown in the euro area. Strong 3.8% GDP growth in 1998 was followed by an only slightly lower 3.4% expansion in 1999. The outlook remains favorable, with real GDP growth in 2000 projected at 3.25%, along with a small budget surplus. The Dutch were among the first 11 EU countries establishing the euro currency zone on 1 January 1999.

GDP: purchasing power parity - $365.1 billion (1999 est.)

GDP - real growth rate: 3.4% (1999 est.)

GDP - per capita: purchasing power parity - $23,100 (1999 est.)

GDP - composition by sector:
agriculture: 3.5%
industry: 26.8%
services: 69.7% (1998 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 24.7% (1991)

Inflation rate (consumer prices): 2.2% (1999 est.)

Labor force: 7 million (1998 est.)

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

Unemployment rate: 3.5% but generous welfare benefits have prompted large numbers to drop out of the labor market (1999 est.)

Budget:
revenues: $163 billion
expenditures: $170 billion, including capital expenditures of $NA (1999 est.)

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

Industrial production growth rate: 3% (1999)

Electricity - production: 88.736 billion kWh (1998)

Electricity - production by source:
fossil fuel: 91.32%
hydro: 0.11%
nuclear: 4.08%
other: 4.49% (1998)

Electricity - consumption: 94.325 billion kWh (1998)

Electricity - exports: 400 million kWh (1998)

Electricity - imports: 12.2 billion kWh (1998)

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

Exports: $169 billion (f.o.b., 1998)

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

Exports - partners: EU 78% (Germany 27%, Belgium-Luxembourg 13%, France 11%, UK 10%, Italy 6%), Central and Eastern Europe, US (1998)

Imports: $152 billion (f.o.b., 1998)

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

Imports - partners: EU 61% (Germany 20%, Belgium-Luxembourg 11%, UK 10%, France 7%), US 9%, Central and Eastern Europe (1998)

Debt - external: $0

Economic aid - donor: ODA, $3.4 billion (1999)

Currency: 1 Netherlands guilder, gulden, or florin (f.) = 100 cents; note - to be replaced by the euro on 1 January 2002

Exchange rates: euros per US$1 - 0.9867 (January 2000), 0.9386 (1999); Netherlands guilders, gulden, or florins (f.) per US$1 - 1.8904 (January 1999), 1.9837 (1998), 1.9513 (1997), 1.6859 (1996), 1.6057 (1995)
note: on 1 January 1999, the EU introduced a common currency that is now being used by financial institutions in some member countries at a fixed rate of 2.20371 guilders per euro; the euro will replace the local currency in consenting countries for all transactions in 2002

Fiscal year: calendar year