The Netherlands has a prosperous and open economy in which the government has reduced its role since the 1980s. Industrial activity is predominantly in food-processing (for example Unilever and Heineken), chemicals (for example DSM), petroleum refining (for example Royal Dutch Shell), and electrical machinery (for example Philips). Slochteren has one of the largest natural gas fields in the world, which has so far (2006) resulted in a total revenue of €159 billion since the mid 1970s. With just over half of the reserves used up and an expected continued rise in oil prices, the revenues over the next few decades are expected to be at least that much.

A highly mechanised agricultural sector employs no more than 4% of the labour force but provides large surpluses for the food-processing industry and for exports. The Dutch rank third worldwide in value of agricultural exports, behind the United States and France, with exports earning $55 billion annually. A significant portion of Dutch agricultural exports are derived from fresh-cut plants, flowers, and bulbs, with the Netherlands exporting two-thirds of the world’s total. The Netherlands also exports a quarter of all world tomatoes, and one-third of the world’s exports of peppers and cucumbers.[4] The Netherlands’ location gives it prime access to markets in the UK and Germany, with the port of Rotterdam being the largest port in Europe. Other important parts of the economy are international trade (Dutch colonialism started with cooperative private enterprises such as the VOC), banking and transport. The Netherlands successfully addressed the issue of public finances and stagnating job growth long before its European partners.

As a founding member of the Euro, the Netherlands replaced (for accounting purposes) its former currency, the Guilder, on January 1, 1999, along with the other adopters of the single European currency. Actual Euro coins and banknotes followed on January 1, 2002. In the first years of the third millennium, economic and employment growth came to a standstill, which the government tried to resolve by reducing expenses.

The Netherlands has the 16th largest economy in the world, and ranks 10th in GDP (nominal) per capita. Between 1998 and 2000 annual economic growth (GDP) averaged nearly 4%, well above the European average. Growth slowed considerably in 2001-05 due to the global economic slowdown, but the first quarter of 2006 showed promising growth of 2.6%. Inflation is 1.3% and is expected to stay low at around 1.5% in the coming years. The Dutch Statistics Agency, CBS, however, has claimed the inflation is at 0.9%, the lowest since 1989. According to the definition used by the CBS, unemployment is at 5.5% of the labour force By Eurostat standards however, unemployment in the Netherlands is at only 3.5% - the second lowest rate of all European Union member states (figures: Feb 2007). The Netherlands also has a relatively low GINI coefficient of 0.326.