Dutch disease

Noun

Meaning

(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, and thus causing 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.

(dated, chiefly US) Hollanditis. [from 1981]

Examples

Azerbaijan shows some signs of the so-called " Dutch disease " because of its fast-growing energy sector, which causes inflation and makes non-energy exports more expensive. Source: Internet

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