Economic inequality between Dutch regions increasing: Rabobank

The economic inequality between the various Dutch regions will increase next year, Rabobank concluded in a study. The Dutch economy as a whole will grow by 0.6 percent, the bank expects. But for a quarter of the regions, economic contraction lies ahead.

The Brainport Eindhoven and Greater Amsterdam regions will see economic growth of up to 2 percent. But many parts of the country's north, such as Zuidwest-Friesland and Zuidwest- and Noord-Drenthe, will face economic contraction. Rabobank also expects shrinkage in and around Gouda, Alphen aan den Rijn, Alkmaar, and the IJmond.

According to the bank, the shrinking economies are in regions with many companies active in industry and trade. These sectors will likely shrink next year. These regions have also grown less rapidly in recent years.

Differences in regions’ economic growth are not a new phenomenon, Rabobank economist Rogier Aalders said to NOS. “We have seen it for decades.” It is not necessarily a bad thing that some regions are lagging behind others, he said. “Growth also has negative effects. It can be difficult to find a home, and the environmental quality also leaves much to be desired in regions where things are going fast.”

“The northern half of the Randstad, especially Amsterdam, is growing very fast. Outside of that, Brainport Eindhoven is a growth area. The attraction of several regions is so great that companies go there. Because of the allure, the networks, and the labor market,” Aalders said.

According to him, the shrinkage in some regions will not automatically lead to rising unemployment because people in shrinking regions sometimes work in areas where there is growth.