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The Netherlands has a prosperous and open economy in which the government has reduced its role since the 1980s. Industrial activity is predominantly in food-processing (for example Unilever and Heineken), chemicals (for example DSM), petroleum refining (for example Royal Dutch Shell), and electrical machinery (for example Philips). Slochteren has one of the largest natural gas fields in the world, which has so far (2006) resulted in a total revenue of 159 billion € since the mid 1970's. With just over half of the reserves used up and an expected continued rise in oil prices, the revenues over the next few decades are expected to be at least that much. A highly mechanised agricultural sector employs no more than 4% of the labour force but provides large surpluses for the food-processing industry and for exports. The Dutch rank third worldwide in value of agricultural exports, behind the US and France. Other important parts of the economy are international trade (Dutch colonialism started with cooperative private enterprises such as the VOC), banking and transport (for example the Rotterdam harbour). The Netherlands successfully addressed the issue of public finances and stagnating job growth long before its European partners.
As a founding member of the Euro, the Netherlands replaced its former currency, the Gulden, on January 1, 1999 along with the other adopters of the single European currency, with the actual Euro coins and banknotes following on January 1, 2002. However, in the first years of the third millennium, economic and employment growth came to a standstill, which the government tried to resolve by cutting into its expenses.
In 2003 the economy shrunk 0.9%. In 2004, the recession was over and the economy began its slow recovery with a meager 1.3% growth. The CPB ("Centraal Plan Bureau", Central Planning Bureau), a think tank of leading Dutch economists linked with the government, expects a recovery of the economy in 2005, with a growth of 2.25%. In 2004, inflation was 1.2%, the lowest level since 1989.
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