Dutch economy is back on track after the prolonged stagnation and unemployment dogged the nation since early 2000. The economic recovery of the nation is significant in a time when there is uncertainty over global economic growth. There were able to achieve 3% GDP growth in the year 2007. In a survey conducted by the Organization for Economic Co-operation and Development suggests that it was due to labor utilization and viable environment to do business. The open Dutch economy was able to draw the attention of the investors by providing them the right concoction of supportive international environment and business friendliness. The government’s sustained efforts to make structural reforms including pension systems, health care and disability benefits have further fuelled growth.
Statistics show that even though the consumer confidence has diminished due to credit crunch, the manufacturers are confident with their last month’s excellent performance. Consequentially, most of the companies are on a staff hiring spree and this has created more opportunities in the job market. The higher demand for work force has drastically put pressure on the wages. Currently the concern of the nation is about their aging population, reduced influx of immigrant workers, lower women participation in jobs and the youth leaving the country for greener pastures.
The very low exposure to sub-prime mortgages of the Dutch financial institutions has minimized the risk of directly inflicting damage to the economic growth. Even though the banks have tightened lending norms by fixing a limit on loans above $145 million, Bernard Wientjes, chairman of the Dutch business confederation, believes there is no loan crisis in the country. Unless there is a real economic turmoil in the world in 2008, the Netherlands to achieve at least 2.5% growth would not be uphill task.