The Randstad region is the largest economic urban region in the European Union (EU) after Paris, London and Milan, but the per capita production in the Randstad is lower than in many other urban regions. This may be partly caused by the relatively small proportion of providers of financial and business services in the Randstad.
GDP in urban regions EU, 2005
High GDP in Randstad region
The Gross Domestic Product (GDP) of a region is a standard for the size of its economy. In 2005, the Randstad region had the fourth highest GDP of all urban regions in Europe. In fact, the Randstad – together with Milan – was ‘the best of the rest’, as the GDPs of Paris and London were more than twice as high as the Randstad’s GDP. The Flemish Diamond completes the top 5.
GDP per capita urban regions EU, 2005
Randstad region in middle bracket as for GDP per capita
In the GDP per capita rankings, the Randstad region is outperformed by various smaller cities in Europe. The per capita output is also larger in London and Paris. With a per capita GDP exceeding 50 thousand euro in 2005, Munich tops the list. Together with Vienna, the Flemish Diamond, Frankfurt, Hamburg, Lyons, Rome and Milan, the Randstad takes up a middle position with a GDP per capita of approximately 35 thousand euro.
In urban regions with a high GDP per capita, business and financial services play a prominent role. On average, 38 percent of the output in Munich, Copenhagen, Stockholm and Paris is generated by providers of business and financial services. In cities with a relatively low GDP per capita, the share of financial and business service providers is on average 10 percentage points lower. The share in the Randstad is 33 percent. In relative terms, the sectors manufacturing industry and agriculture are better represented in the Randstad region than in many other urban areas across Europe.
Economic growth in urban regions EU, 2005
Average economic growth in Randstad region
In 2005, the Randstad region generated an economic growth of 1.8 percent, taking up a position in the middle bracket. The fastest economic growth was recorded in Dublin, Stockholm and Copenhagen (nearly 5 percent or more). Lisbon, Milan and Berlin, on the other hand, faced an economic downturn.