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Definition 2024


Dutch_disease

Dutch disease

English

Noun

Dutch disease (uncountable)

  1. (economics) An increase in the value derived from the natural resources sector of the economy, leading to a rise in the valuation of the currency increasingly based on the natural resources sector, causes a deterioration in the manufacturing sector, by making the manufactured goods less competitive in the export marketplace compared to those manufactured by economies with lower valuation currencies, because they are relatively more expensive.