The Kingdom of the Netherlands—Netherlands : Selected Issues

Author/Editor:

International Monetary Fund. European Dept.

Publication Date:

February 12, 2019

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This Selected Issues paper provides details about the sources and uses of nonfinancial corporation savings and highlights the role of multinational corporations. The paper also discusses the implications for the external sector assessment and policy recommendations. The large Dutch international investment position reflects its status as an international corporate center. The study shows that large trade surpluses and small primary income balances are consistent with the dominance of multinational corporations in the Netherlands’ external positions. Separating multinational corporations’ activities from the Dutch current account for the external sector assessment is expected to help identify underlying policy distortions. Separating their activities would help identify imbalances in other economic sectors. Small and medium enterprises are stagnant and remain financially constrained. Small household net saving hides the fact that households are still highly leveraged and that their consumption is constrained by stagnating disposable income. Therefore, improving statistics and separating multinational corporations’ activities from both internal and external accounts would help identify domestic policy distortions and address imbalances effectively.

Series:

Country Report No. 19/45

Subject:

English

Publication Date:

February 12, 2019

ISBN/ISSN:

9781484398579/1934-7685

Stock No:

1NLDEA2019002

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

35

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