There are significant growth differences between regions in the Netherlands this year. The Greater Amsterdam area is growing relatively fast, while parts of Groningen, Friesland and Drenthe are lagging behind, according to a report published on Thursday. report from Rabobank.
Regions in the Netherlands with many industrial and agricultural companies will face very limited growth or even economic contraction this year, according to economists at Rabobank. “We expect contraction in agriculture, logistics, industry and especially construction. The economic outlook is therefore less rosy, especially in the production sectors,” the economists state.
The average economic growth for the Netherlands is estimated at 0.6 percent this year. The map below shows how regional growth relates to this.
Economic contraction in parts of Friesland and Groningen
Regions such as Southwest Friesland, Delfzijl and surroundings, Zeeuws-Vlaanderen and the Achterhoek are expected to show shrinkage this year.
For East Groningen, Twente, North and South Limburg and the Brabant regions where there is a relatively large amount of industry, Rabobank economists see limited economic growth.
Due to the expected shrinkage in mechanical engineering, economic growth in the technology region Brainport Eindhoven is also uncertain. Important tech companies such as Philips, ASML and VDL Groep are active in this area.
According to Rabobank, regions with a lot of ICT and specialist business services can expect a growth impulse from those sectors this year. Outliers in that area are the regions of The Hague, Utrecht and especially Greater Amsterdam. “This region benefits from the growing market for specialist services and is hardly affected by the shrinking production sectors,” conclude the Rabo economists.
