Strong cyclical domestic and external momentum post Covid-19 crisis

AA1

LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD912.24bn (World ranking 17, World Bank 2020)
Population 17.44mn (World ranking 67, World Bank 2020)
Form of state Constitutional Monarchy
Head of government Mark RUTTE (PM)
Next elections 2025, General election
  • 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, 2020)

Exports Rank Imports
Germany 23.1%
1
16.5% Germany
Belgium 10.9%
2
14.3% China
France 8.7%
3
8.1% Belgium
United Kingdom 7.9%
4
8.0% United States
United States 4.9%
5
4.4% United Kingdom

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Petroleum, petroleum products and related materials 7.7%
1
9.4% Petroleum, petroleum products and related materials
Medicinal and pharmaceutical products 7.3%
2
7.7% Electrical machinery, apparatus and appliances, n.e.s.
Electrical machinery, apparatus and appliances, n.e.s. 5.6%
3
6.8% Office machines and automatic data processing machines
Office machines and automatic data processing machines 5.3%
4
6.4% Telecommunication and sound recording apparatus
Telecommunication and sound recording apparatus 5.0%
5
5.1% Road vehicles
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

  • 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.

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