Well-being economic capital
Economic capital comprises the machinery and tools, ICT, intellectual capital and infrastructure required to build material well-being and generate economic growth. Economic capital also includes wealth and debts, where debt is viewed as negative and is offset by assets.
- Median (disposable) household income corrected for inflation is rising.
- Household debt is high compared with other EU countries and is increasing.
- Investments to maintain economic capital are stagnating or declining as a proportion of GDP.
Economic capital
in EU
in 2023
in EU
in 2023
in EU
in 2023
| Theme | Indicator | Value | Trend | Position in EU | Position in EU ranking |
|---|---|---|---|---|---|
| Economic capital | Physical capital stock | € 170 per hour worked (2021 prices) in 2023 | 8th out of 13 in 2023 | Middle ranking | |
| Economic capital | Knowledge capital stock | € 11.95 per hour worked (2021 prices) in 2023 | 5th out of 14 in 2023 | Middle ranking | |
| Economic capital | Average household debt | € 120,506 per household (current prices) in 2023 | increasing (decrease well-being) | 24th out of 25 in 2023 | Low ranking |
| Economic capital | Median wealth of households | € 133,300 per household (2023 prices), 1 January 2023 | increasing (increase well-being) |
Colour codes and notes to the dashboards in the Monitor of Well-being
Some of the relevant indicators for economic capital are also addressed in themes under well-being ‘here and now’. This theme considers the resources underlying economic capital which future generations need to shape their well-being. If the current generation exhausts or diminishes the available capitals, the following generation will not be able to achieve the same level of well-being ‘here and now’. Indicators expressed in euros have been corrected for price fluctuations. The base year used is not the same in all cases.
The medium-term trends for physical and intellectual capital per hour worked are stable. A less rosy picture emerges when a longer timescale is considered. The stock of physical capital rose to 177 euros per hour worked up to 2013, but has since gradually fallen back to 170 euros in 2023. While it did continue to grow in real terms, the number of hours worked grew faster. The same development was seen in the stock of intellectual capital. Between 1995 and 2015, the stock of intellectual capital increased from 7.1 euros to 13 euros per hour worked, after which a slight decline is observable. The Netherlands is very gradually losing its lead over the 13 other EU countries with which comparison is possible.
Investments to maintain economic capital are also less positive when expressed as a percentage of GDP. Investments in R&D and tangible fixed assets are stagnating, and investments in ICT are falling. The Netherlands is also losing ground on other countries among the EU27. Investments in civil engineering – essential for maintaining and improving infrastructure – are falling (SDG 9.1 Infrastructure and mobility). Only private expenditure on R&D is rising (SDG 9.3 Knowledge and innovation). SDG 9.2 Sustainable business shows that of all SMEs requiring finance, 51 percent experienced obstacles; for large enterprises, the figure was 21 percent.
The trend in household wealth is increasing. On 1 January 2023, the median wealth of Dutch households stood at 133,300 euros. This is less than in 2022, when it was 144,500 euros. This fall is primarily the result of the decline in house prices and the arrival of Ukrainian refugees with few or no assets (registered in the Netherlands).
Household debt is relatively high and is rising. Only in Luxembourg is average household debt higher. Set against household debt are household savings, which are still increasing, although the sharp increase seen in previous years is flattening out (SDG 10.2 Financial sustainability).