The Netherlands has the best economy in Europe

According to a comparison done by the World Economic Forum (WEF) the Netherlands now has the most competitive economy in Europe. Worldwide, only Singapore, the United States and Hong Kong are more competitive.

The Dutch economy has achieved this status because of its agile economy, which is the result of “an entrepreneurial culture, flat organisations and growth of innovative companies”, according to researchers quoted by nu.nl.

How did the Netherlands become the best economy in Europe?

“There are more and more innovative companies in the Netherlands that realise growth and embrace disruptive technologies and new business models,” says Henk Volberda, professor of strategic management at the University of Amsterdam. “Dutch companies have also become much less hierarchical and can more easily adapt to economic dynamics.” The Netherlands also scores high thanks to great infrastructure, high-quality IT facilities, stable government policy, a highly educated workforce and excellent healthcare (though maybe that is about to change, with 11 hospitals failing a financial stress test).

Lack of innovation is a problem

Despite all this good news, there does seem to be a problem with innovation in the Netherlands- it is only the tenth most innovative country in the world. Germany, the US and Switzerland occupy the top three spots in this ranking. And why is the Netherlands not as innovative as other countries? According to Volberda, both the government and the business community are not investing enough in research.

Skilled workers are going abroad

There is also a problem with the labour supply in the Netherlands. Companies have problems finding highly qualified staff for higher positions. Many highly qualified Dutch people are moving abroad to work, where they can earn more money. According to Volberda, this mismatch between supply and demand inhibits economic growth. This can be partly helped by teaching children about business and innovation in schools.

What is coming next?

Financial changes may be coming, as the current monetary policy of the European Central Bank has reached an end. This policy was to push interest rates further down to stimulate the economy, but it seems that this policy is no longer working. Given that developed economies like the Netherlands benefitted the most from this, it will be interesting to see what effect the change will have.

What do you think about the Dutch economy being the best in Europe? And what can we do to improve innovation? Let us know in the comments below.

Feature image: @lifeof_jochem/instagram. If you want to see more of @lifeof_jochem’s photos, check out the awesome photos he took for our Rotterdam photo report! They really show the amazing urban planning and skyline of Rotterdam. 

Ailish Lalor
Ailish Lalor
Ailish was born in Sydney, Australia, but grew up by a forest in south-east Ireland, which she has attempted to replace with a living room filled with plants in The Hague. Besides catering to her army of pannenkoekenplantjes, Ailish spends her days convincing her friends that all food is better slightly burnt, plotting ways to hang out with dogs and cats, and of course, writing for DutchReview.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related posts

Latest posts

13 best coffeeshops in Den Haag: Where to smoke weed in 2025

South Holland joint enjoyers, don’t underestimate the coffeeshops in Den Haag! Behind the city’s formal facade lies a fun, relaxed side — here’s how...

Calvinism in the Netherlands: why are the Dutch so Calvinist in nature?

Travelling around the Netherlands, you'll spot tons of beautiful churches, and meet people living simply and modestly — or as some might say, quite...

Turns out these products cost HALF as much in Germany as they do in the Netherlands

It turns out that many everyday drugstore products are, on average, twice as expensive in the Netherlands compared to Germany. A recent investigation by Kassa...

It's happening

Upcoming events