The Netherlands has a typical developed European economy. It is also the world’s third-largest exporter of farm produce (after the USA and France), accounting for 16 per cent of total export earnings. Dairy products, meat, vegetables and flowers are the main products. Industry is concentrated in petrochemicals and plastics, pharmaceuticals, synthetic fibers and food processing. There is also a wide range of light industries, including the manufacturing of electronic goods, although the historically strong textiles has been in long-term decline. By contrast, The Netherlands has developed a strong base in advanced technological industries including computing, telecommunications and biotechnology. Deposits of natural gas (the only mineral resource of any size) meet much of the country’s energy needs. Service industries are also important, notably transport through the world’s busiest container port at Rotterdam. The Netherlands has derived substantial benefits from its membership of the EU, with whose members the bulk of its trade takes place. It has generally been a strong proponent of further economic integration within Europe and joined the Eurozone upon its inception in January 1999. In 2003, the government was forced to increase taxes and cut spending in order to stay within the limits imposed by Maastricht criteria which govern the operation of the Eurozone. The global economic slow-down which took hold in 2001 reduced annual GDP growth to 1.5 per cent, and in the following year to just 0.2 per cent. In 2003, the Dutch economy was expected to contract by 0.7 per cent. Inflation has declined from 5.1 per cent in 2001 to its present level of 2.1 per cent; unemployment has climbed gently to 5.3 per cent. Germany is the largest single trading partner, accounting for about 25 per cent of The Netherlands’ imports and exports. Belgium/Luxembourg, France and the UK follow. Overall, two-thirds of Dutch trade is with the EU. The Netherlands is a founder member of the Benelux Economic Union and of the European Bank for Reconstruction and Development.
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