The economy of Amsterdam is extremely well developed. It is mainly based on the agriculture and industry. The industries that dominate the economy include tourism, chemical, automobile, shipping, electronics, etc.
Being the capital of the Netherlands, Amsterdam has a well-developed economy. The economy of Amsterdam relies upon agriculture as well as industries. Amsterdam is also an important port. So this city can be regarded as one of the major commercial hubs of Europe.
The currency of Amsterdam is Euro. The GDP of the country is US $350 billion. GDP per capita is US $22,000. The annual growth and the inflation rate are 2.7% and 3.5%, respectively.
Major Industries and Natural Resources of Amsterdam
The industries that determine the economic growth of Amsterdam include banking, media, chemical, electronics, shipping, tourism, automobile, horticulture, clothing, service industry, etc.
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Amsterdam is rich in mineral resources like peat, limestone, gas, petroleum, sand, gravel, salt and many others. As a result, the mineral-based industries do not have to depend on other countries for raw materials. The diamond-processing industries of the city contribute largely towards the economic growth of Amsterdam.
The Importance of the Trade Route in Economy
Trading in Amsterdam is facilitated by its connection with the North Sea through North Sea Canal and with Rhine Delta through Amsterdam-Rhine canal. Utilization of the sea route helps Amsterdam trade to flourish, which in turn contributes to the economic growth of this city. The well-developed road and railway network further facilitate the growth of trade and industry as the raw materials and finished products can easily be transferred to the markets.
The Netherlands is a Eurozone member as well as a member of the European Union since 1951. It has also taken part in the Schengen Agreement. Participation in such international institutions as well as events helps the Netherlands to receive international funds, which in other terms affects Amsterdam economy.
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