The Rotterdam economy is showing a moderate growth path, but lacks the power to truly lead the way in the Netherlands. This is evident from the latest Economic Outlook Rotterdam 2025, an analysis of trends and opportunities in the city and region. Despite continued economic growth and rising employment, structural challenges such as a mismatch on the labour market, lagging agglomeration benefits and geopolitical uncertainties continue to weigh on the economy.
According to the report, the gross regional product (GRP) in Rijnmond (the Rotterdam urban region) will grow by 1.3% in 2025 and by 1.0% in 2026, comparable to the national trend. Employment will grow by 0.7% and 0.8% respectively. However, growth is being suppressed by limited specialisation in innovative sectors and a lack of strategic policy.
Labour market tight and out of balance
The region is struggling with persistent tightness on the labour market. The participation rate is rising, but mainly in sectors with flexible, low-paid jobs. At the same time, there is a threat of a shortage of qualified workers for the transition sectors. The report emphasises the need for “lifelong learning” and better integration of practically trained people.
Rotterdam lacks agglomeration power
Although Rotterdam profiles itself as the second economic region of the Netherlands, there is no clear sector that excels in scale, specialisation and growth. As a result, so-called agglomeration benefits (synergy, innovation and lower costs due to proximity) are lacking. The region around Rotterdam grew relatively faster in Employment than Rotterdam itself. The region is strong in transport & storage, but this sector is hardly growing in added value.
Cooperation with Delft offers opportunities
A bright spot is the economic relationship between Delft and Rotterdam. Delft acts as a breeding ground for innovative start-ups, while Rotterdam facilitates further growth. Intensive cooperation between both cities can lead to a strong regional ecosystem, comparable to successful examples abroad such as Graz-Vienna or Turku-Helsinki.
Strategic recommendations
The report calls for strategic policies that focus on innovation and economic diversification, strengthening the relationship with Delft, increasing agglomeration benefits through infrastructure, business space and housing, and finally a future-proof labour market through education and integration.
Without intervention, Rotterdam and the region will not be ready for the economic and social challenges of the future, warns the Economic Outlook Rotterdam 2025. Only with targeted investments in innovation, cooperation and inclusive growth can the region realise its potential, and prepare for the coming geopolitical uncertainties.
- More information
For a summary of the Economic Outlook Rotterdam 2025 (in Dutch), click here or download above. For more information, please contact Ronald de Groot, Media & Public Relations Officer at Erasmus School of Economics: rdegroot@ese.eur.nl, mobile: +31 6 53 641 846.
