The Netherlands market - Gateway to Europe
The economy of the Netherlands is the 5th largest economy in the EU. The Netherlands economy is set to grow 1.9% in 2025 and 1.5% in 2026. With a population of 18.3 million the Netherlands is a highly developed market economy focused on Trade & Logistics, Manufacturing, Services, Innovation & Technology and Sustainable & Renewable Energy. (Sources: Wikipedia, Reuters)
Economic growth in the Netherlands will be stronger than previously expected, as wage growth offsets persistently high inflation. Inflation in the Netherlands looks set to remain around 3%, well above the European Central Bank's 2% target level in 2025 and eurozone averages. (Source: Rabobank)
Main threat to the economic growth in the Netherlands is the high international geopolitical uncertainty. As a trading nation, the Netherlands remains sensitive to developments abroad, such as unrest in the Middle East, the war in Ukraine and the economic tensions with the US. (Source: DNB)
The Netherlands’ unemployment rate is held at 3.8% in February 2025, remaining at its highest level since September 2022. The number of unemployed individuals increased by 6.000 from the previous month to a three-year high of 392.000, while employment declined by 4.000 to 9.811 million. (Source: Trading Economics)
The digital gateway to Europe
The Netherlands is Europe’s most wired country:
The Netherlands is one of the best countries for IT and Technology companies. Businesses that invest in the Netherlands’ Technology and IT sector, can accelerate their innovation. (Sources: Dataportal, Invest In Holland)
Currently, one in seventeen people in the Dutch labor market is an IT professional. By 2030 one in ten of the Dutch labor force will be an IT professional. That said, the battle for salaried and temporary IT professionals, self-employed and employed by secondment companies, is in full swing. At nearly 65%, the sourcing pressure is unprecedentedly high, especially given the 37.6% average for the entire labor force. (Source: Headfirst)
The future of Technology
Artificial Intelligence is increasingly influencing the optimization of the supply chain. With an expected revenue increase to 1 trillion dollars by 2030, the sector and its supply chains face major challenges, including Cyber Security risks and the need for strategic collaboration. Geopolitical shifts and new regulations such as the CSRD and NIS2 Directive, require adjustments in reporting and digital security. The Netherlands, as Europe's "Silicon Valley", must invest in talent development and an attractive business climate to promote technological advancement and competitive strength. (Source: EY)
Economic growth in the Netherlands will be stronger than previously expected, as wage growth offsets persistently high inflation. Inflation in the Netherlands looks set to remain around 3%, well above the European Central Bank's 2% target level in 2025 and eurozone averages. (Source: Rabobank)
Main threat to the economic growth in the Netherlands is the high international geopolitical uncertainty. As a trading nation, the Netherlands remains sensitive to developments abroad, such as unrest in the Middle East, the war in Ukraine and the economic tensions with the US. (Source: DNB)
The Netherlands’ unemployment rate is held at 3.8% in February 2025, remaining at its highest level since September 2022. The number of unemployed individuals increased by 6.000 from the previous month to a three-year high of 392.000, while employment declined by 4.000 to 9.811 million. (Source: Trading Economics)
The digital gateway to Europe
The Netherlands is Europe’s most wired country:
- 99% online penetration at the start of 2025
- 25.3 million active cellular mobile connections
- 138% of the total population
The Netherlands is one of the best countries for IT and Technology companies. Businesses that invest in the Netherlands’ Technology and IT sector, can accelerate their innovation. (Sources: Dataportal, Invest In Holland)
Currently, one in seventeen people in the Dutch labor market is an IT professional. By 2030 one in ten of the Dutch labor force will be an IT professional. That said, the battle for salaried and temporary IT professionals, self-employed and employed by secondment companies, is in full swing. At nearly 65%, the sourcing pressure is unprecedentedly high, especially given the 37.6% average for the entire labor force. (Source: Headfirst)
The future of Technology
Artificial Intelligence is increasingly influencing the optimization of the supply chain. With an expected revenue increase to 1 trillion dollars by 2030, the sector and its supply chains face major challenges, including Cyber Security risks and the need for strategic collaboration. Geopolitical shifts and new regulations such as the CSRD and NIS2 Directive, require adjustments in reporting and digital security. The Netherlands, as Europe's "Silicon Valley", must invest in talent development and an attractive business climate to promote technological advancement and competitive strength. (Source: EY)
The Netherlands market - Business Culture
The Dutch Manufacturing industry is set to grow moderately in 2025. After two years of declining production, foreign and domestic demand is set to gradually pick up. The growing demand for chips will add some momentum for Dutch factories, as will the new inventory build-up.
The Netherlands also has a relatively large food industry, a sector that is not very sensitive to the economic cycle. Now that the chemical industry, which is relatively large in the Netherlands, is no longer shrinking in the short term and the semiconductor market is picking up further, numerous indicators are now pointing towards a positive outlook for 2025.
Metalworking suppliers and machine parts makers will also benefit. Due to the still low level of investment overall, machinery and equipment manufacturing aimed at end markets other than the semiconductor market will not grow strongly in 2025. (Source: ING)
Logistics
Consistently ranking in the top of the World Bank Logistics Performance Index, the Netherlands is a leading logistics hotspot in Europe. Home to the world’s most efficient seaports and the highest quality of air transport in the EU, the Netherlands’ logistics infrastructure provides unparalleled access to Europe.
The Dutch are also developing new technologies and digital connections to create a smarter, more sustainable logistics network. These innovations are powered by 942.000 Dutch logistics specialists who comprise more than 10% of the country’s workforce. Offering advanced distribution capabilities and a robust supply chain, the Netherlands allows businesses to reach customers in Europe and beyond. (Source: The Hague)
Business Culture
The Netherlands also has a relatively large food industry, a sector that is not very sensitive to the economic cycle. Now that the chemical industry, which is relatively large in the Netherlands, is no longer shrinking in the short term and the semiconductor market is picking up further, numerous indicators are now pointing towards a positive outlook for 2025.
Metalworking suppliers and machine parts makers will also benefit. Due to the still low level of investment overall, machinery and equipment manufacturing aimed at end markets other than the semiconductor market will not grow strongly in 2025. (Source: ING)
Logistics
Consistently ranking in the top of the World Bank Logistics Performance Index, the Netherlands is a leading logistics hotspot in Europe. Home to the world’s most efficient seaports and the highest quality of air transport in the EU, the Netherlands’ logistics infrastructure provides unparalleled access to Europe.
The Dutch are also developing new technologies and digital connections to create a smarter, more sustainable logistics network. These innovations are powered by 942.000 Dutch logistics specialists who comprise more than 10% of the country’s workforce. Offering advanced distribution capabilities and a robust supply chain, the Netherlands allows businesses to reach customers in Europe and beyond. (Source: The Hague)
Business Culture
- The Netherlands is an early adoptor when it comes to using new (IT) solutions
- The Dutch are willing to try new things which makes the Netherlands the gateway to Europe: if you are able to make it here, you can make it anywhere!
- Dutch people overall speak more than one language. Because it is a trading nation and many nationalities live in the Netherlands, English is one of the most used languages to communicate
- The business culture is what we call “Poldermodel”: Consensus Decision Making. (Source: Wikipedia)
- The Dutch do business based on relationship and trust. If they don’t know you, they will first see if someone from their trusted network can offer support before they start doing business with you
- The Dutch are most of the time interested in the cheapest deal (best value for money)
- What we also see is that the Dutch are becoming more like the US when it comes to doing business
- Dutch people are very direct
- In many Dutch companies you will not be able to speak to a decision maker at the start of the relationship. That is why it is important to find sponsors within the company: people that can influence the decision to do business with you or that have access to the DMU and are willing to help you
- Dutch people communicate in an informal way. Most people accept to be addressed by their first name
- Over the past years, the dresscode also became more informal. Unless you want to do business with the government, where it is still very much regulation to dress and address in a formal way
- When in doubt: start formal and move to informal when you see it is not a problem. Starting informal and having to go back to formal is a no go!
- The Dutch are known for bringing a sandwich to work for lunch and often split the bill when going out to eat
- When initiating a meeting they always start with coffee and discuss topics like: traffic, weather and yesterday’ soccer match, etc.
- When doing business in the Netherlands you should be aware of this points
