Melkwegbrug

In economic terms, the Metropolitan Region of Amsterdam (MRA) is doing well. The rapid recovery after the COVID-19 crisis illustrated the resilience of the region. In 2021 and 2022, the economy grew by 7.5 and 6.9 percent, respectively. In 2023, growth slowed down to 1.2 percent, and in the coming years, the economy is expected to grow at just below 2 percent, which is still favourable compared to the rest of the Netherlands. But there are also concerns about structural shortages in the housing market – especially for low-income groups – and structural shortages in the labour market, partly due to an aging population. These are some of the main results from the Economic Outlook of the Metropolitan Region Amsterdam 2024 (in Dutch abbreviated as EVMRA), produced by a consortium consisting of TNO (the Netherlands Organisation for applied scientific research), SEO Economisch Onderzoek and Vrije Universiteit Amsterdam.

Brede welvaart

Henri de Groot, professor of Regional Economic Dynamics at the Department of Spatial Economics and co-author, presented the results of the EVMRA on July 9 in the Public Library in Amsterdam (OBA). Economically the region performs well, but do all residents benefit? And what are the prospects for future generations and generations elsewhere in view of concerns about environmental sustainability? Although poverty rates have halved over the past ten years, the percentage of people living in poverty is still higher than in the rest of the Netherlands. The MRA also performs relatively poor on other social and environmental indicators such as social cohesion, volunteer work, safety, air quality and satisfaction with housing. Henri de Groot therefore argues that the focus should not be solely on the economic performance of the region, but also on the social and environmental aspects: ‘A focus on Brede Welvaart (broad-based prosperity) could provide guidance in fundamental choices facing our society.’

Political developments

There are also concerns due to national and international political developments. The weak trust in the new government and the rise of far-right movements in Europe make consumers as well as firms pessimistic about the future. Such developments are particularly concerning for the MRA which is highly integrated in the global economy and has benefited a lot from its open character. Considering recent developments, there are fears that countries will withdraw from existing partnerships and revert to closing of borders.

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Picture by: Keesnan Dogger Fotografie