Heatmap shows deterioration, but offers opportunities for improvement

With the report Business Climate Heatmap 2025: Measuring Dutch Business Climate Trends, we bring together 65 indicators that define the business climate. Think about human capital, infrastructure, macroeconomics, safety, governance, and trade. We track developments in the Netherlands from 2013 through 2024 and compare them with nine other countries. This year, we also included the US and Ireland. The Netherlands remains in the top five, but the gap with Switzerland, Luxembourg, Denmark, and Ireland is growing.

Key insights from the Business Climate Heatmap

Our Chief Economist, Barbara Baarsma: 'Between 2013 and 2018, the business climate improved, but then the decline began. For the third consecutive year, it is below the 2013 level. This is no longer a temporary setback, but a downward trend. This is concerning because a strong business climate is the foundation for economic growth and broad prosperity.'

Baarsma: 'In 2013, we were still feeling the aftermath of the financial crisis, which lingered longer here than in other Northwestern European countries. Although the economy is now in better shape, the business climate steadily declined between 2013 and 2024.'

Not one specific cause for the decline

The further deterioration between 2023 and 2024 is linked to multiple factors, including:

• a more negative political sentiment toward businesses;
• increased uncertainty in economic policy;
• lower scores on environment, fiscal policy, and trade as a share of GDP.

Baarsma: 'Year-to-year differences may be small, but over several years, you see a steady decline across various areas.'

Trump-effect not yet visible

The data covers the period up to and including 2024. The impact of the second Trump administration is therefore not yet included. Baarsma: 'These results are no guarantee for the future. But I expect we’ll see a ‘Trump-effect’ in various indicators next year.'

Put business climate high on the cabinet’s agenda

'The Netherlands is aging and essentially has one growth engine: higher labor productivity. And that’s faltering,' says Baarsma. 'Businesses face daily capacity constraints: labor and space shortages, electricity grid congestion, limited environmental usage due to nitrogen emissions and water pollution. Without intervention, stagnation looms.'

'A new cabinet must make sharp choices: which sectors deliver the most added value while placing the least demand on scarce resources and physical and ecological space? That requires uncomfortable but inevitable decisions.'

‘Important that we work together’

Agnes Koops, Chair of the Board of Management of PwC Netherlands, hears the same concerns about the business climate from clients. She calls not only on the (future) cabinet but also on businesses to take action. 'The Netherlands has a wealth of knowledge and innovative power and leveraging that is essential. While holding each other accountable for responsibilities, it is important that we work together on solutions. On various themes from our business climate heatmap—such as innovation and living space—both businesses and government can contribute to moving the Netherlands forward. Through joint efforts, we can significantly improve our business climate.'

International perspective: frontrunners pulling ahead

We compared the Netherlands on the same 65 indicators with nine European countries that are culturally and economically similar and compete with us as business locations. The Netherlands consistently outperforms Belgium, the UK, France, and Germany. At the same time, we’ve been losing ground to Denmark, Switzerland, Luxembourg, and Ireland since 2013. Since 2018, we’ve remained in the top five, while the frontrunners continue to pull ahead. Baarsma: 'The outcomes of an international comparison always depend on which countries you compare yourself with. So, the judgment always depends on the context in which you measure. The key is to learn from the countries that outperform the Netherlands. That’s why we also included a comparison with Singapore. That country scores highly on business climate, but since we only have data for 45 of the 65 indicators, we excluded it from the international heatmap.'

What you’ll find in the report

• A clear heatmap showing all indicators by category. In one glance, you can see where the Netherlands improved or declined between 2013 and 2024.
• A media analysis showing how concerns about the business climate are reflected in the press.