The Netherlands is crisis proof

General financial health

When assessing the financial state of an economy, financial markets look exclusively at the budget deficit and the amount of public debt a country carries. However, the economists at ING Bank also looked at the general financial health of various nations.

Lowest external debt

ING Bank economists concluded that the Dutch economy is in excellent financial shape. The country has the lowest external debt as a percentage of it's Gross Domestic Product (GDP). The more a country owes to foreign parties (expressed as external debt), the larger the risk that the country will not be able to pay off their debt.

Foreign investors will be less likely to lend out their money as a result. It is also important to measure how much a nation saves, since the people in a country save, the less dependent they are on external parties for loans.

Healthy savings

The Dutch traditionally save their money which increases the financial health of the country and makes it less dependent on foreign investors. Since the Netherlands is in good financial shape, this makes investment in the country attractive to foreign companies. The Dutch economy is noted for stable industrial relations.

Amsterdam Metropolitan Area

Currently, over 1,900 international companies benefit from this attractive business environment and have settled in the Amsterdam Metropolitan Area. The area is stable from a business, financial, regulatory and political perspective. Amsterdam provides good protection of intellectual property and quick, efficient and transparent permit procedures. The Dutch economy is characterised by low unemployment, low inflation rate and a sizeable current account surplus.

Related topics

Stable inflation rate

The Netherlands' pension system

Corporate Netherlands attracts

World Economic Forum rates Netherlands' attractiveness

Companies in the Amsterdam Metropolitan Area