Well-being ‘later’: economic capital

Economic capital comprises the machinery and tools, ICT, knowledge capital and infrastructure required to create material well-being and generate economic growth. It also covers assets and liabilities. Debt is considered to be negative capital, and is offset by assets.
  • Both the physical capital stock and the knowledge capital stock are more or less stable.
  • The Netherlands invests a relatively large amount in research and development (R&D).
  • Household debt is increasing, but so are wealth and savings.
  • The affordability of pension provisions is decreasing, primarily due to the increase in the number of pensioners per worker.

Well-being 'later'

Economic capital

€ 147
per hour worked (2015 prices) in 2022
7th
out of 12
in EU
in 2022
Physical capital stock
€ 10.72
per hour worked (2015 prices) in 2022
4th
out of 12
in EU
in 2022
Knowledge capital stock
€ 107,099
per household (current prices) in 2022
The long-term trend is increasing (decrease well-being)
24th
out of 25
in EU
in 2022
Average household debt
€ 135,100
per household (2022 prices), 1 January 2022
The long-term trend is increasing (increase well-being)
Median wealth of households
Well-being 'later'
Theme Indicator Value Trend Position in EU Position in EU ranking
Economic capital Physical capital stock € 147 per hour worked (2015 prices) in 2022 7th out of 12 in 2022 Middle ranking
Economic capital Knowledge capital stock € 10.72 per hour worked (2015 prices) in 2022 4th out of 12 in 2022 Middle ranking
Economic capital Average household debt € 107,099 per household (current prices) in 2022 increasing (decrease well-being) 24th out of 25 in 2022 Low ranking
Economic capital Median wealth of households € 135,100 per household (2022 prices), 1 January 2022 increasing (increase well-being)

Colour codes and notes to the dashboards in the Monitor of Well-being

Average Dutch household debt was nearly 107 thousand euros in 2022. The trend is rising (red) and the Netherlands is at the bottom end of the EU rankings. On the other hand, rising house prices in recent years have pushed up median household wealth, which shows an upward – green – trend.

The dashboards for SDG’s 8.1, 9.2 and 12 show that Dutch producers are relatively efficient users of raw materials. With relatively low domestic material consumption, the Netherlands is in the leading group in the EU; resource productivity is even the highest in the EU27. However, types of raw materials used and how efficiently they are used also depend on the structure of a country’s economic activities. As a knowledge-based economy, the Netherlands boasts high labour productivity (gross value added per hour worked) compared with other EU countries. SDG 9.3 Knowledge and innovation describes additional favourable trends and/or a position in the top or middle group of the EU rankings for many innovation indicators.

The dashboard for SDG 10.2 Financial sustainability comprises additional indicators on debts and assets within economic capital. First of all, government debt. Here the trend is downward. At the end of 2023, the debt amounted to 46.5 percent of GDP, the lowest percentage since 2007 and well below the formal European limit of a maximum 60 percent of GDP. Secondly, the financial position of households. Average total household debt is rising. Home owners have an increasingly higher mortgage debt on average. As this is unfavourable from the perspective of long-term sustainability of well-being, both trends are red. Household debts are offset by assets, both non-financial (such as an own home) and financial (for example currency and deposits). The increasing amount of total savings is positive for longer term well-being, as it means people have a buffer to absorb financial blows. The improved mortgage loan-to-value ratio for homeowners under 35 years of age is also favourable.