Groningen economy shrinking fastest with 13% drop as gas taps close

The economy of the province of Groningen contracted by 13 percent in the second quarter of 2023 compared to a year earlier, entirely due to the phasing out of gas extraction. If you exclude gas mining from the figures, Groningen’s economy remained stable, Statistics Netherlands (CBS) reported.

The other Dutch provinces saw relatively little change in their economies compared to Q2 2022. The economies in Zeeland, Overijssel, and LImburg contracted by about 1 percent, while those in Fryslan, Flevoland, Noord-Holland, Noord-Brabant, and Utrecht grew by about 1 percent. Last week, CBS reported that the Dutch economy contracted by 0.3 percent in the second quarter compared to a year earlier, putting the economy in a mild recession.

According to CBS, looking at the smaller regions within the provinces show that economic contraction in the second quarter was linked to less gas extraction and high energy prices. The Overig Groningen region experienced a 15 percent contraction. Most gas extraction locations are in this region. Excluding gas extraction, the economy in this region grew by about 1 percent. In Delfzijl and its surrounds, the economy contracted by 4 percent mainly because the industry in the region suffered from high energy prices.

In Zeeland, the economy contracted by about 1 percent. The contraction was caused by the industry in Zeeuws-Vlaanderen producing less due to the persistently high energy prices. The economy in Zeews-Vlaanderen contracted by 7 percent. In Overig Zeeland, the economy grew by 1 percent.

In Noord-Holland, IJmond’s economy contracted 6 percent as the industry continued to contend with high energy prices. The economy of Haarlemmermeer grew 2 percent due to the further recovery of aviation. In the other Noord-Holland regions, the percentage was between -1 and +1.

In Noord-Brabant, West Brabant’s economy contracted 2 percent due to a contraction in industry and trade, transport, and storage. Zuidoost-Noord-Brabant and Overig Noordoost-Noord-Brabant, where the industry is less sensitive to high energy prices, saw slight economic growth.

The province of Zuid-Holland’s economy remained the same in size compared to Q2 last year. In the region around The Hague, government growth caused the economy to grow by 2 percent. In Rijnmond, there was a slight contraction because of less trade and transport. The economy in Delft and Westland also contracted slightly as horticulture in the region struggled with the high energy prices.