Dutch disease

Updated: Aug 20, 2021

This refers to an increase in one form of export driving up a country’s exchange rate, which handicaps the sale of other exports tind impairs the ability of domestic products to compete with imports. The name comes from the supposed effect of natural gas discoveries on the economy of the Netherlands. The Dutch disease is also called the resource curse because a natural resource is often the single largest export item of a resource-rich country.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
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James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.