Economy - Mazars - Netherlands

Relative to its size, the Netherlands have an extraordinary strong economy. since many centuries the Netherlands has been a country of traders and farmers. As a consequence many multinational companies are based in the Netherlands amongst which for example Royal Dutch shell, Philips and unilever. Alongside multinationals it developed a very dynamic financial centre in Amsterdam with many highly qualified legal and financial experts.

The horticultural industry also has been traditionally strong which results in e.g. the Netherlands having the largest flower auction in the world.

4. A supportive policy towards free enterprise and competition

The trading history of the country and the stable political system have favoured an effective governmental structure. An effective government (2nd in the world in effectiveness according to the Worldbank in 2006) contributes to a healthy business climate promoting free enterprise and competition.

5. Low barriers to foreign trade and low exchange controls

The Dutch economy is very open and business friendly. The government is constantly monitoring and improving the level playing field of all companies doing business in and with the Netherlands. Due to the importance of doing international business (e.g. 30% of the Dutch income is realised from the export of goods) barriers to foreign trade and exchange controls are low.

Doing business in the Netherlands is actively promoted eg. by facilitating setting up new business easy and quickly (possible within 10 days). As a consequence the Netherlands consistently scores high in the global competitiveness rankings.

The supportive policy towards free enterprise has also resulted in a good fiscal climate for international holding companies which lead to the development of a significant financial “trust and fund” service industry.

6. good market opportunities

From the supply side and in addition to the traditional industries such as the financial industry, the food and flower industry, the logistical services industry and water engineering industry the Netherlands has developed into an important Research and Development location and it serves as a prime hub in the international IT infrastructure.

From the demand side a market with more than 170 million consumers is available within 500 kilometers from the Netherlands.

The economic performance in the 1990’s outperformed other European countries. After 2000 the growth stabilized until 2008. The current expectations are that the Netherlands will slightly outperform the average Eu country in the years to come. However, the impact of the financial crisis is still uncertain.

Unemployment levels are relatively low at 5,25%. Economic growth is expected to be 1.9% and to recover from the world wide contraction as a result of the financial crisis. (source CPB and Bs).

7. Policy towards Foreign investment

In 2010 the Netherlands was the second largest merchandisevexporting country in the Eu after Germany (source WTO report). Prime reason is the fact that the country plays a central logistical role in Europe as a hub in the distribution of goods mainly through the Port of Rotterdam and Schiphol Airport.

The Netherlands also attracted significant direct foreign investments. The Netherlands ranked 3rd in 2009 in Foreign Direct Investment inflows in Europe. Especially the investments from emerging industrial countries such as India, Korea and China find their way to the Netherlands.

8. high level Financial system

The Netherlands has a high level financial system with an easy access world class banking system. All major international banks are represented in the Netherlands.

The Amsterdam stockexchange is part of NYsE Euronext. The NYsE Euronext family of exchanges is located in six countries and includes the New York stock Exchange, the world’s largest cash equities market and Euronext, the Eurozone’s largest cash equities market. NYsE Euronext has nearly 4,000 listed companies.

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