Economic Problems that Threaten The Netherlands

Netherlands’ Economy

Netherlands’ Economy: An Overview

The Netherlands’ Economy is the sixth largest economy in the European Union, which plays an important role. The Netherlands is part of the euro zone and as such, its monetary policy is controlled by the European Central Bank.

The European Union, plays an important role, because it is the world’s second largest agricultural exporter. The Dutch financial sector is highly concentrated, with four commercial banks possessing over 90% of banking assets.

The Netherlands’ Economy is solely run by the country’s high trade surplus, stable industrial relations, and moderate unemployment. It has a highly mechanized agricultural sector which employs only 2% of the labor force but provides a large surpluses for food processing.

Economic Problems it may encounter

The Netherlands’ Economic threats and challenges fall in two broad categories, namely, the adverse consequences of technological developments and economic growth, the lack of adequate responsiveness to these adverse consequences.

One of the most prominent problem that the country is facing today is the growing inequality that was mentioned most frequently as a key threat facing the Netherlands. This refers to the expanding gap between the educated citizens who benefit from the globalization and the uneducated who feel otherwise.

Another problem that the country faces is the U.K.’s exit from the union, as it brings many uncertainties in the world market and the European Union. This may pose a great threat because the sudden exit of the U.K. will tip the scale of the trade industry in between both member of the Union and those that are not.

The Netherlands is widely seen as a model country but even then, its economy is facing real estate crisis that is affecting the United States and Spain and other major economies worldwide.

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