Destep of Economic

Topics: Inflation, Income, Tax Pages: 4 (1207 words) Published: March 7, 2013
The Kingdom of the Netherlands has not only a heavy reliance on foreign trade and prosperity, but also the open economy. It is famous in the world because of its stable labor relations, moderate unemployment and inflation, a huge current account surplus, as well as an important role of European transportation hub. The Netherlands started circulate the euro in 1st , January, 2002 together with other 11 contraries of EU. * Purchasing power

DEFINITION: Purchasing power is the amount of goods or services that can be purchased with a unit of currency. (
According to the figures released by the Dutch Central Bureau of Statistics, the purchasing power of residents in the Netherlands in 2011 decreased by 0.4% overall. , The decline of purchasing power of retirees was the largest (1.1%), apart from that, the unemployed and people with disabilities purchasing power decreased by 1.0% and 0.8% respectively. The purchasing power of the self-employed dropped 0.6% overall. Otherwise there was a huge discrepancy in this group, including 10% of self-employed persons purchasing power fell by 34%, but 10% had increased up to 29%. However, as for employment, due to the periodic wage increases, mentioning the post as well as new job opportunities, their purchasing power increased of 0.5%. In short, the purchasing power of only the employers with the highest income and those self-employed increased of 0.8%. (Dutch Daily News 29th August, 2012)

Due to the recovery of the economy, it is possible that Dutch people will be more generous, especially when they buy goods and service for their little children. * Gross Domestic Product (GDP)

DEFINITION: Gross domestic product is the market value of all officially recognized final goods and services produced within a country in a given period of time. (

According to the World Bank Group, the Netherlands GDP...
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