The Dutch economy is one of the most stable in the world, despite being hit hard by the global recession. After 26 years of steady economic growth, the Dutch economy which is heavily dependent upon foreign trade and financial services has been hard-hit by global economic crisis. Dutch exports declined nearly 25% last year due to a sharp reduction in world demand. The Dutch financial sector, the seventh largest banking sector in the world, was also damaged by the global financial crisis, due in part to high exposure by some Dutch banks to U.S. mortgage-backed securities.
The country has weathered the downturn and the government has taken strong measures to ensure the economy is re-stabilized as quickly as possible. Holland went into the recession with a government surplus and although bail-outs have resulted in a slight deficit the country is still in a relatively steady position. Known for having stable industrial relations confidence from the rest of the world is also returning. Inflation in Holland is moderate. Holland has been one of the leading European nations for attracting foreign direct investment in the past.