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regional differences in economic growth are widening

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The differences between regions in the Netherlands are increasing when you look at economic growth, says Rabobank in a she studies. In the Brainport Eindhoven and Greater Amsterdam regions, for example, there will be growth next year, sometimes up to 2%. On the other hand, there are also many places in the Netherlands where there is a decrease.

Rabobank expects economic growth of 0.6% for all of the Netherlands, but there is a contraction in a quarter of the regions. This affects many parts of the north of the country, such as southwestern Friesland and southeastern and northern Drenthe. There is also a contraction in and around Gouda, Alphen aan den Rijn, Alkmaar and IJmond.

According to the bank, this is due to the fact that many companies are active in industry and commerce. These are sectors in which a contraction is expected for next year. Furthermore, these are regions that have grown less rapidly in recent years.

Attraction

Regional economist Rogier Aalders of Rabobank says it is not a new phenomenon that there are differences in the growth of regions. “We have seen this for decades. The northern half of the Randstad, especially Amsterdam, is growing very fast. Outside of that, Brainport Eindhoven is a growing area. The attraction of a number of regions is so great that companies are heading there. Because of the allure, the networks and the job market.”

According to Aalders, it is not necessarily a bad thing that some regions are lagging behind. “Growth also has negative effects. It can be difficult to find a home and the environmental quality also leaves a lot to be desired in regions where things go fast.”

According to him, the contraction in some regions need not lead to an increase in unemployment, because people in the contracting regions sometimes work in areas where there is growth.

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