## Kingdom of the Netherlands-Netherlands: Selected Issues

_IMF Staff Country Reports, April 3, 2017_

## Source details

**Canonical URL:** [Kingdom of the Netherlands-Netherlands: Selected Issues](https://www.imf.org/en/publications/cr/issues/2017/04/03/kingdom-of-the-netherlands-netherlands-selected-issues-44789)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/04/03/kingdom-of-the-netherlands-netherlands-selected-issues-44789/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/04/03/kingdom-of-the-netherlands-netherlands-selected-issues-44789/index.json)
- [Bundle manifest](/en/publications/cr/issues/2017/04/03/kingdom-of-the-netherlands-netherlands-selected-issues-44789/bundle-manifest.json)

## Bibliographic details
- Published: April 3, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475591507.002

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### Summary
- Focus: steady increase in current account surpluses in “Surplus 3” countries—Germany, the Netherlands, and Switzerland—since the mid-1990s.
- Mechanism differences by country:
  - Germany and the Netherlands: nonfinancial corporations appear to be behind the rising surpluses.
  - Switzerland: household savings explain the bulk of the current account surplus; both mandatory and voluntary savings have been on an increasing trend since 2000.

### Key findings on drivers of current account surpluses
- Germany and the Netherlands:
  - Increasing corporate profits have not been converted into dividends, keeping a lid on consumption.
  - Nonfinancial corporations are implicated as primary contributors to the rising surpluses.
- Switzerland:
  - Household savings (mandatory and voluntary) have been on an increasing trend since 2000.
  - Trending net contributions to pension funds since 2000 are likely drivers.
  - Rising equity contribution for housing purchases is also likely a driver.

### Analytical themes and concepts covered
- Balance of payments
- Current account and current account surpluses
- Savings-investment dynamics (government savings-investment balance; savings-investment surplus)
- Income and income effect
- Substitution effect
- Trade balance and international trade
- Real effective exchange rates
- Labor supply and labor tax wedge
- Foreign exchange
- Lending-borrowing balance
- Elasticity assumption and elasticity case
- NICs, ISCR

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr1778.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr1778.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2017/04/03/kingdom-of-the-netherlands-netherlands-selected-issues-44789_