The economy in Amsterdam region is likely to grow the fastest this year (2 per cent) due to the large service sector, such as IT companies, law firms and consulting firms. The Utrecht region is also growing for this reason. This contrasts sharply with some regions in rural areas, such as Zeeuws-Vlaanderen, Delfzijl, the Achterhoek and South-West Friesland. The economy in those areas relies more on producing businesses such as industry, agriculture and housing. These are likely to get tougher this year, which means these regions have to reckon with a contraction.
The IT and business services sectors are doing particularly well this year. "The combined share of both sectors in and around the capital accounts for as much as a quarter of the total economy, compared to 14 per cent nationwide," says Rogier Aalders of RaboResearch. "This contributes significantly to the high expected growth there. To a lesser extent, this is also true for Utrecht." At the same time, Aalders expects a contraction in agriculture, logistics, manufacturing and especially construction. "Especially in the manufacturing sectors, therefore, the economic outlook is less rosy." Besides previously mentioned regions, Rabobank thinks that East Groningen, Twente, North and South Limburg, the IJmond region and several regions in Brabant will also struggle this year. These areas have relatively high levels of industry. Southeast Brabant is an exception. "Here, because of the strong economic ecosystem, we still expect decent growth."
Source: Economic Quarterly Report - September 2024, Rabobank
