NETHERLANDS

Resilient economic growth

AA1

LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD909.070bn (World ranking 17, World Bank 2019)
Population 17.33mn (World ranking 66, World Bank 2019)
Form of state Constitutional Monarchy
Head of government Mark RUTTE (PM)
Next elections Mars 2021, Legislative
  • Favorable business environment
  • Key trade hub in Europe
  • Among the largest exporters of crude oil in the world, and the second-largest producer and exporter of natural gas in Europe
  • High current account surplus
  • Sound public finances
  • Healthy banking sector
  • High private debt, with corporate debt being the 3rd highest in the Eurozone
  • Very high dependency on the Eurozone economic cycle
  • High exposure to a hard Brexit

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Germany 21%
1
21% Germany
Belgium 12%
2
13% Belgium
United Kingdom 11%
3
8% China
France 7%
4
7% Italy
Italy 5%
5
6% United Kingdom

Trade structure by product

(% of total)

Exports Rank Imports
Refined Petroleum Products 9%
1
7% Refined Petroleum Products
Computer Equipment 6%
2
6% Computer Equipment
Pharmaceuticals 5%
3
5% Crude Oil
Telecommunications Equipment 4%
4
5% Telecommunications Equipment
Plastic Articles 4%
5
4% Pharmaceuticals
The paying behavior of domestic companies is very good with payment normally taking place within 47 days; however the rules that implement the latest EU Directive on late payments are less demanding than the EU standards.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

In practice, although the courts are reliable, negotiating payment instalments is often the most efficient way to avoid unnecessary costs and a specialized collection agency may often suffice to obtain payment.

When the debtor has become insolvent, debt renegotiation mechanisms are available but remain inefficient and unused, while most bankruptcies are terminated without any payments of dividends to unsecured creditors.

Euler Hermes

Economic Research Team

research@eulerhermes.com

Georges Dib

Economist for Latin America, Spain and Portugal

georges.dib@eulerhermes.com

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