NLD Netherlands profile

The Netherlands operates a consensus driven political system with multiparty coalitions and ongoing negotiation among government, parliament, and interest groups. This arrangement provides policy stability and broad legitimacy but can slow decisive action on urgent issues. Administrative power is highly decentralized, with responsibilities shared among provinces and municipalities, which can lead to fragmentation and uneven implementation across regions. Public institutions emphasize transparency and regulatory oversight, yet overregulation and bureaucratic complexity can raise transaction costs for business and hinder reform. The policy environment upholds rule of law and international cooperation, but debates on migration, asylum, and integration reveal societal tensions and policy trade offs. Alignment with international law and EU rules shapes regulatory choices, at times constraining bold domestic experimentation.

Colonial history Former colonial power, with colonies in the Americas, Africa, and Asia
Former colonizer Dutch Empire
Government type Constitutional monarchy and parliamentary democracy
Legal system Civil law system
Political stability High

The economy is highly productive and diverse, with a strong service sector, logistics, and advanced manufacturing playing pivotal roles. Global trade, a sophisticated infrastructure, and a robust innovation environment support competitiveness. Yet vulnerabilities exist due to sector concentration in logistics, agriculture, and energy transition, which tie performance to external demand, policy shifts, and environmental constraints. The business climate is dynamic but marked by regulation, relatively high costs, and shortages in specific skilled areas. The agricultural sector faces pressure to curb environmental impact, affecting rural livelihoods and export dynamics. Climate and energy policies drive transformation but also introduce transitional risks for incumbent industries and communities.

Currency name Euro
Economic system Mixed economy
Informal economy presence Present but not predominant
Key industries Agriculture, energy, chemicals, machinery, and electronics
Trade orientation Highly export-oriented economy

Geography shapes policy and risk management because large areas are below or near sea level, necessitating extensive water management, dikes, and pumping capacity. This reality drives resilience planning but adds complexity and cost to governance. Urbanization concentrates populations in coastal and riverine zones, stressing housing, transport, and nature spaces. The environmental footprint features nitrogen deposition, emissions, and biodiversity pressures, making the balance between agricultural productivity and nature protection a persistent challenge. Climate change raises flood and heat risks, requiring adaptation of infrastructure and land use. There is a strong emphasis on sustainable planning, though regional disparities in environmental outcomes remain.

Bordering countries Germany, Belgium
Climate type Temperate maritime
Continent Europe
Environmental Issues Air pollution, water pollution, habitat loss
Landlocked No
Natural Hazards Flooding, storms
Natural resources Natural gas, petroleum, coal, and limestone
Terrain type Low-lying flatlands, hills in the southeast

The country maintains strong welfare provisions, public services, and a social equality ethos. Social cohesion faces strain from housing shortages, elevated living costs, and ongoing debates about integration and identity. Education performs well on many indicators but outcomes can vary, and lifelong learning remains a challenge. Labor market participation is high, yet skills mismatches and barriers for migrants and older workers persist. Urban diversity fosters cultural richness but can coincide with tensions around inclusion, discrimination, and equal opportunity. Public trust in institutions is relatively solid, though political polarization surfaces in debates over migration, criminal justice, and climate policy.

Cultural heritage Rich history in art, architecture, and trade; famous for painters like Rembrandt and Vermeer
Driving side Right
Education system type Public and private education system, compulsory education from ages 5 to 16
Ethnic composition Predominantly Dutch with small minorities of Turkish, Moroccan, Indonesian, and Surinamese ethnicities
Family structure Nuclear families are common, with increasing diversity in family structures
Healthcare model Universal healthcare system
Major religions Christianity, Islam, irreligion
Official languages Dutch

The Netherlands benefits from advanced digital infrastructure, reliable energy networks, and a dense transport system anchored by major ports and airports that sustain global connectivity. Logistics and port efficiency are defining strengths for trade and industry. Domestic mobility prioritizes cycling and public transit, but congestion and regional disparities remain. Technology adoption progresses across sectors, including automation, data governance, and smart city initiatives, though implementation varies by sector and is influenced by capital, skills, and regulatory alignment. Energy transition remains central, with decarbonization, renewables, and grid modernization shaping policy, while transitional risks affect heavy industry and household energy costs. Resilience against climate impacts and cyber threats remains a central concern for critical infrastructure.

Internet censorship level Low
Tech innovation level High, with significant investments in technology and innovation
Transport system type Well-developed public transport system including trains, buses, and cycling infrastructure

Development indicators

Indicator Year Value Rank 5Y Rank Change
Military expenditure (current US$) 2023 16,624,820,117 20 -1
Political Stability and Absence of Violence/Terrorism 2023 0.658 57 +13
Regulatory Quality 2023 1.79 7 +4
Rule of Law 2023 1.64 12 +2
Unemployment, total (% of total labor force) 2023 3.54 64 -27
Birth rate, crude (per 1,000 people) 2023 9.2 166 -11
Death rate, crude (per 1,000 people) 2023 9.5 44 -9
Exports of goods and services (% of GDP) 2024 84.1 11 +1
GDP per capita (current US$) 2024 68,219 12 -6
GDP per capita, PPP (current international US$) 2024 84,218 11 -3
High-technology exports (current US$) 2023 110,952,318,467 9 -1
Imports of goods and services (% of GDP) 2024 72 20 -2
Inflation, consumer prices (annual %) 2024 3.35 65 -11
Life expectancy at birth, total (years) 2023 81.9 33 +6
Mortality rate, under-5 (per 1,000 live births) 2023 4 140 -7
Net migration 2024 121,628 17 0
Patent applications, residents 2021 2,080 17 -1
Population, total 2024 17,994,237 71 +5
Poverty headcount ratio at national poverty lines (% of population) 2021 14.5 45 +2
Prevalence of undernourishment (% of population) 2022 2.5 91 +1
Renewable energy consumption (% of total final energy consumption) 2021 12.2 121 -17
Research and development expenditure (% of GDP) 2022 2.26 13 -1
Foreign direct investment, net inflows (% of GDP) 2024 -1.1 101 -90
Current account balance (% of GDP) 2024 9.92 10 -11
Level of water stress: freshwater withdrawal as a proportion of available freshwater resources 2021 16.1 76 -1
Total greenhouse gas emissions excluding LULUCF per capita (t CO2e/capita) 2023 8.43 41 +10
Current health expenditure (% of GDP) 2022 10.1 24 0
Domestic general government health expenditure per capita, PPP (current international US$) 2022 5,193 15 -2
Physicians (per 1,000 people) 2021 3.91 20 -6
Suicide mortality rate (per 100,000 population) 2021 11.5 50 0
Individuals using the Internet (% of population) 2023 97 12 -1
Control of Corruption 2023 1.87 9 -2
Government Effectiveness 2023 1.63 10 +2
Logistics performance index: Quality of trade and transport-related infrastructure (1=low to 5=high) 2022 4.2 4

Compare Netherlands to other countries

Demography and Health

The Netherlands had a total population of about 17.99 million in 2024, placing it around the 71st largest population globally. It enjoys a long and healthy life expectancy, with 81.9 years at birth in 2023. Natural population growth is near balanced or slightly negative in recent years, given a birth rate of 9.2 per 1,000 people (2023) and a death rate of 9.5 per 1,000 people (2023). A substantial positive net migration of 121,628 people (2024) helps offset aging and sustains growth, contributing to cultural diversity and labor supply. Unemployment remains relatively low at 3.54% (2023), alongside a well-funded health system: current health expenditure is 10.1% of GDP (2022), and domestic general government health expenditure per capita, PPP, is about 5,193 international US dollars (2022). The health workforce is solid, with 3.91 physicians per 1,000 people (2021). Life expectancy gains and strong health indicators align with high health spending and access, though social challenges persist: 14.5% live below national poverty lines (2021), while undernourishment affects 2.5% of the population (2022). Suicide mortality stands at 11.5 per 100,000 people (2021). Internet penetration remains extraordinarily high at 97% (2023), reflecting broad digital access that supports health information, remote care, and social inclusion.

Economy

The Dutch economy features a very high level of prosperity, with GDP per capita at current prices around 68,219 US dollars (2024) and GDP per capita at PPP about 84,218 international US dollars (2024). The country is deeply integrated into global trade, with exports of goods and services amounting to 84.1% of GDP (2024) and imports composing 72.0% of GDP (2024), underscoring its role in global value chains as a hub for manufacturing, services, and logistics. The current account balance stands at a robust 9.92% of GDP (2024), signaling a sustained external surplus and net lender position. Inflation sits at 3.35% (2024), a moderate level that reflects global price dynamics and domestic monetary policy. The economy benefits from strong innovation and productivity: research and development expenditure is 2.26% of GDP (2022), and high-technology exports are substantial, totaling about 111 billion US dollars (2023), with a contribution to exports that ranks among the higher echelons globally. The Netherlands also hosts a sizable elastic reserve of human capital and advanced services, with 2080 patent applications by residents in 2021, indicating ongoing knowledge creation. However, foreign direct investment net inflows are negative, at -1.1% of GDP (2024), which can reflect the Netherlands’ role as a global financial and logistics hub that channels investments through complex corporate structures rather than reflecting simple net inflows, a pattern reinforced by the country’s strong regulatory framework and openness to capital markets.

Trade and Investment

Trade and investment are central pillars of the Dutch economy. Exports of goods and services account for 84.1% of GDP in 2024, and imports represent 72.0% of GDP, illustrating a highly open and transnational trade regime. The current account surplus of 9.92% of GDP in 2024 signals sustained net inflows from foreign transactions, reinforcing macroeconomic stability and the ability to finance investment. The Netherlands maintains a top-tier logistics environment, with the Logistics Performance Index rating for quality of trade and transport-related infrastructure at 4.2 (on a 1 to 5 scale in 2022), and a high ranking position (4) in its category. This efficiency supports seamless port, air, and intermodal logistics, contributing to the Netherlands’ status as a central gateway for European trade. Foreign direct investment net inflows are negative (-1.1% of GDP, 2024), which often reflects the country’s role as a global corporate hub and conduit for investment rather than indicating weak investment inflows in a traditional sense. The country also hosts substantial high-technology activity, evidenced by strong exports in high-tech goods and a sizable resident patent activity (2080 patents in 2021), underscoring its capacity to translate R&D into commercialized innovation. The combination of strong trade performance, a favorable current account, and a sophisticated innovation apparatus underpins durable growth, even as FDI composition remains complex due to its hub status.

Governance and Institutions

Netherlands governance shows a robust institutional framework. Regulatory quality is high (1.79; rank 7), rule of law is strong (1.64; rank 12), and control of corruption is solid (1.87; rank 9). Government effectiveness is also favorable (1.63; rank 10), all indicating a well-functioning state that supports business, finance, and social policy. Political stability and absence of violence/terrorism are mid-range (0.658; rank 57), suggesting that while the country maintains order and democratic norms, relative regional volatility or international dynamics can influence perceptions of stability. Taken together, these indicators reflect a predictable and transparent policy environment, strong property rights, and credible public institutions that foster investment and innovation. The combination of high regulatory quality, rule of law, and corruption controls helps explain the Netherlands’ attractiveness as a trade hub, financial center, and advanced economy, while moderate political stability emphasizes the ongoing need to manage broader geopolitical risk in a connected world.

Infrastructure and Technology

Infrastructure and technology are standout strengths. The country scores high on logistics and trade-related infrastructure quality (LPI 4.2, 2022), indicative of world-class ports, airports, and multimodal corridors that support vast import-export activity. Internet penetration is exceptional, with 97% of the population online in 2023, enabling advanced digital services, e-government, and data-driven business models. The Netherlands also demonstrates a vigorous innovation ecosystem: residents filed 2,080 patent applications in 2021, and effective research and development expenditure amounts to 2.26% of GDP in 2022, pointing to a strong emphasis on knowledge creation and technological advancement. High-technology exports reached 110.95 billion USD in 2023, reflecting deep integration into global high-tech supply chains. Public and private health expenditure per capita, PPP, stands at 5,193 USD (2022), underscoring substantial public investment in health alongside private sector capacities. The sectoral mix benefits from a highly educated workforce, efficient logistics, and a supportive regulatory environment that collectively drive productivity and competitiveness. Renewable energy consumption is 12.2% of total final energy consumption (2021), highlighting ongoing transitions toward cleaner energy, while engineers, researchers, and policy-makers continue to push for greater efficiency and innovation across the economy.

Environment and Sustainability

Environmental indicators reveal a country pursuing sustainable development but facing challenges consistent with its high consumption profile. Renewable energy accounts for 12.2% of total final energy consumption (2021), indicating room for growth in decarbonization alongside advances in energy efficiency and grid transformation. Level of water stress, measured as freshwater withdrawal relative to available resources, is 16.1% (2021), pointing to moderate pressure on water resources, a context in which the Netherlands’ advanced water-management capabilities are particularly relevant. Total greenhouse gas emissions per capita amount to 8.43 t CO2e (2023), a substantial level reflecting energy-intensive activities, dense urbanization, and heavy transport in a highly developed economy. Ongoing policy efforts and technological innovation are essential to reduce emissions while sustaining high living standards. While social indicators like poverty and nutrition reflect strong social safety nets, the environmental footprint remains an area for continued improvement, with opportunities for scaling renewable energy, improving energy efficiency, and strengthening resilience to climate-related risks in a densely populated, trade-oriented economy.