Exports of services account for 10 percent of GDP

13/10/2016 15:05
The Netherlands earned 66 bn euros from exports of services last year, the equivalent of 10 percent of gross domestic product (GDP) versus 7 percent in 1995, as reported by Statistics Netherlands (CBS).

The overall value of exported services was 122 bn euros in 2015, so for each euro worth of exported services, the value added was 55 euro cents. This is much lower than in 1995, when one euro worth of exported services contributed 67 euro cents to the economy. The value declined due to the growing share of re-exported services in total exports of services (e.g. payments made via the Netherlands for the exploitation of intellectual property). Without these capital flows, which tend to have little impact on economic activities in the Netherlands, exports of services accounted for about 70 cents per euro over the years.

Contribution exports of services to GDP

Rapid growth exports of IT services

Exports of services cover a wide range of service activities: IT services, management consultancy and transport services, e.g. a Dutch transport company commissioned by a German company to carry goods from Rotterdam to Germany. Construction another example of a sector which exports multiple services. Worldwide, the Netherlands is a major player when it comes to dredging to keep waterways navigable.

With 6.9 bn euros, the sector holding companies and management consultancy agencies earned most from the export of services in 2015, followed by IT services (5.7 bn euros), wholesale and commission trade (5.1 bn euros) and storage and transport services (4.5 bn euros). This is excluding earnings from re-exports. In 1995 wholesale and commission trade topped the list, with road transport as runner-up. Compared to 1995, the only new entry in the top ten in 2015 was the sector temp agencies and employment services. In terms of earnings from export services, IT is the fastest growing sector in the top ten relative to 1995.

Earnings from exports of services

United States major export destination

The United States is the major destination for Dutch exporters of services. The total value of services exported to the US in 2015 amounted to 17.3 bn euros, earning the Netherlands 8.7 bn euros. The US is followed by Germany (8 bn euros), the United Kingdom (7.6 bn euros) and Switzerland (4.7 bn euros) as most important countries of destination. Notably, Ireland takes up fifth place with an export value of 8.7 bn euros, but in terms of value added (i.e. what the Netherlands earns from the export of services), the country holds seventh place. Value added per euro worth of exported services is therefore much lower for Ireland than for other countries. Again, this is due to the re-export of services. To a certain extent, the same applies to Singapore.
Major countries of destination for exports of services