Regions and Cities at a Glance 2018 – NETHERLANDS http://www.oecd.org/regional

Economic trends in regions

Regional gap in GDP per capita, 2000-16 Index of regional disparity in GDP per capita, 2016

Top 20 % richest over bottom 20% poorest regions GDP per capita in USD PPP 2016 2000 Ratio 4 70 000 Small regions Large regions Highest region (TL3) (TL2) 60 000 North Holland 59 410 USD 3 50 000 Netherlands 40 000 46 250 USD 2 30 000 Lowest region Friesland 20 000 32 220 USD 1 10 000 2000 2005 2010 2016

Country (number of regions considered) Differences between regions of Netherlands in terms of GDP per capita have slightly increased over the last sixteen years. However, they remain moderate compared to other OECD countries, with North Holland having 84% higher GDP per capita than Friesland, also due to the exploitation of natural resources in the former region. With a productivity growth of 1.1% per year over the period 2000-16, Flevoland is catching-up with respect to North Holland, the frontier region in terms of productivity in the country. Drenthe experienced the lowest productivity growth in the same period (0.4% per year). While the youth unemployment rate has declined in practically all regions since 2014, in Flevoland it was 12.6% in 2017, more than 7 percentage points higher than in Zeeland, but below the OECD average of 16.4%. Productivity trends, most and least dynamic regions, 2000-16 Youth unemployment rate, 15-24 years old, 2011-17

GDP per worker in USD PPP N. Holland: highest rate (%) 110 000 productivity in 2016 25 Highest rate 100 000 (+1% average annual 20 OECD growth over 2000-16) Flevoland 90 000 15 12.6% Netherlands Flevoland: highest 80 000 productivity growth 10 Netherlands 70 000 (+1.1% annually) 8.9%

60 000 Drenthe: lowest 5 Lowest rate productivity growth Zeeland 50 000 0 (+0.4% annually) 5% 2000 2005 2010 2016 2011 2014 2017

Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); the Netherlands is composed of 12 large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010).

Updated the 5th of March 2019 Differences in well-being across regions

Top region Bottom region North Holland Provinces

Drenthe Zeeland Zeeland Flevoland Groningen Overijssel

top top 20% Utrecht Zeeland Groningen (1 to 402) to (1 North Holland Utrecht Flevoland Limburg Overijssel Friesland

middle middle 60% Overijssel Groningen Groningen Groningen Zeeland Drenthe

Zeeland

Ranking Ranking OECD of regions bottom bottom 20%

Community Jobs Safety Life Health Civic Education Income Environment Housing Access to Satisfaction Engagement services Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below.

The widest regional disparities in the Netherlands are found in the well-being dimension community (perceived social network support), with Drenthe ranking in the top 5% of OECD regions and Zeeland in the bottom half. All twelve Dutch regions rank in the top 10% of OECD regions in access to broadband. Considering all regions in the Netherlands, Zeeland is the top region in jobs, life satisfaction and health. The high performing Dutch regions fare better than the OECD median region in all well-being indicators, except for air pollution. In the low performing regions, 96% of households have access to broadband connection, 18 percentage points more than the OECD median region.

Country OECD median Dutch regions Average region Top 20% Bottom 20% Community Perceived social netw ork support (%), 2013 93.9 91.4 96.3 92.0 Jobs Employment rate 15 to 64 years old (%), 2017 75.1 67.7 77.2 72.3 Unemployment rate 15 to 64 years old (%), 2017 5.0 5.5 4.2 5.8 Safety Homicide Rate (per 100 000 people), 2016 0.9 1.3 0.5 1.3 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 7.5 6.8 7.6 7.4 Health Life Expectancy at birth (years), 2016 81.7 80.4 82.0 81.4 Age adjusted mortality rate (per 1 000 people), 2016 7.6 8.1 7.5 7.8 Civic engagement Voters in last national election (%), 2017 or lastest year 81.6 70.9 83.9 79.5 Education Labour force w ith at least upper secondary education (%), 2017 78.4 81.7 82.0 75.6 Income Disposable income per capita (in USD PPP), 2016 18 631 17 695 19 981 17 629 Environment Level of air pollution in PM 2.5 (µg/m³), 2015 13.8 12.4 13.6 15.3 Housing Rooms per person, 2016 2.0 1.8 2.1 2.0 Access to services Households w ith broadband access (%), 2017 98.0 78.0 98.8 96.0 Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); the Netherlands is composed of 12 large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

Updated the 5th of March 2019 Metropolitan areas in the national economy

OECD population is concentrated in cities* Percentage of population in cities, 2016 UnitedNetherlands States OECD average people outside cities people 23% outside cities people in cities 30% 1.2 billion 17 million 45% with population people - 77% people - 70% 55% people in cities with above 500 000 14% live in cities live in cities population between people in cities people in cities with 6% 50 000 and 250 000 with population population between 50 000 and 250 000 9% 18% above 500 000 people in cities with population between people in cities with population between 250 000 and 500 000 250 000 and 500 000 Source: OECD Metropolitan Database. Number of cities: 35 in the Netherlands and 1 138 in the OECD.

In the Netherlands, 77% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 45% compared to 55% in the OECD area.

Importance of metropolitan areas Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2016 Cities above 500 000 people, 2000-16

Netherlands OECD average % % Netherlands OECD average 80 80 68% 70 63% 70 64% 54% 58% 55% 60 48% 60 50 45% 50 40 40

30 30 areas 20 20

10 Amsterdam

10 327metropolitan 0 0 % of national % of national % of national All metropolitan1 areas Largest contributor2 GDP employment population Metropolitan areas in the Netherlands account for 54% of national GDP and 48% of employment. Between 2000 and 2016 they generated 64% of the national GDP growth, half of which was generated in Amsterdam. Four Dutch metropolitan areas are among the top 20% in the OECD in terms of GDP per capita: Amsterdam, Groningen, Eindhoven and Utrecht. Except Groningen, the metropolitan areas of the Netherlands have higher air pollution than the median of the 327 OECD metropolitan areas. OECD Metropolitan areas ranking Cities above 500 000 people

USD PPP 100 000 80 000 GDP per 60 000 40 000 capita, 2016 20 000 0 Top 20% richest Bottom 20% poorest metropolitan areas metropolitan areas

Lev el of air pollution in PM 2.5 (µg/m³) 30 Air pollution 20 (PM2.5), 2017 10 0 Top 20% least polluted Bottom 20% most polluted metropolitan areas metropolitan areas

Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: 6 in the Netherlands compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm.

Updated the 5th of March 2019

Subnational government finance

Subnational government expenditure by function As a share of total subnational government expenditure, 2016

Netherlands 00 OECD average

Education 30% 11 25% Education Social protection 23% 22 14% Social protection Other 23% 33 15% Other

Economic affairs 14% 44 14% Economic affairs

General public services 7% 55 14% General public services

Health 3% 66 18% Health

Subnational expenditure per capita: USD 6 961 77 USD 6 817

Subnational government expenditure amounts to USD 6 961 per capita in the Netherlands compared to an OECD average of USD 6 817. In the Netherlands, this is equivalent to 31.7% of total public expenditure and to 13.8% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. Education and social protection are the two largest spending items for subnational governments in the Netherlands: together they represent 53% of subnational expenditure compared to 39% in the OECD area. In the Netherlands, 47.8% of total public investment was carried out by subnational governments compared to an OECD average of 56.9%.

Role of subnational governments in public investment Subnational government public investment per capita, 2016

USD per capita Netherlands OECD average 1 800 1 600 1 400 Total public investment 1 200 USD 1 603 per capita Total public investment 3.2% of GDP USD 1 278 per capita 1 000 3.0% of GDP 800 600 Subnational government Subnational government investment 400 investment USD 765 per capita USD 727 per capita 200 47.8% of public invest. 56.9% of public invest. 0

Source: OECD Subnational Government Structure and Finance Database. Note: The function ‘Other’ includes housing and community amenities, recreation, culture and religion; environment; public order and safety.

OECD Regions and Cities at a Glance 2018 The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. Consult this publication on line: https://oe.cd/pub/2n9

Updated the 5th of March 2019