Economy grew in most of Netherlands; Contraction in Groningen

The Dutch economy grew by 1 percent in 2024, but this was not the case in all regions. Groningen saw an economic contraction, mainly due to the termination of gas extraction. The economy did grow in the other provinces, according to Statistics Netherlands (CBS).

The Groningen economy shrank by 4.1 percent last year after a decline of 9.1 percent in 2023. Gas extraction in that province started getting phased out in 2018, but extraction in the Groningen field stopped completely last year. Apart from gas extraction, the province’s economy grew by 1 percent, according to CBS.

The economy also contracted in Noord-Friesland, the Zaanstreek, the Noordoostpolder, Urk, Leiden, and the Bollenstreek.

Economic growth was the strongest in Drenthe and Zeeland, with 1.8 percent in both provinces. The government and healthcare sectors, in particular, contributed to this. CBS noted the largest regional growth in the Noord-Holland region of IJmond (4.5 percent). This increase was almost entirely driven by industry. Steel producer Tata Steel is located there, among others.

According to the statistics agency, the economies in the four large cities showed stronger growth than the rest of the Netherlands. The Hague grew the fastest at 2 percent, mainly thanks to the government. Business services also ensured growth in this city. The Amsterdam economy, which still showed the strongest growth in 2023, grew by 1.3 percent last year.