Berlin's economy is humming: Growth over average expected!

Berlin's economy is humming: Growth over average expected!

in Berlin, the economy shows impressive resilience compared to the national trend and continues to grow how the Investment bank (IBB) . For 2024, an increase in gross domestic product of 1.3 percent is forecast compared to the previous year. For 2025, IBB expects a further growth of 1.5 percent, which makes Berlin one of the economic draft horses in Germany.

growth factors and sector effects

The service industry, traditionally strong in the capital, is the main driver of this growth, according to IBB. It recorded considerable growth of 5.1 percent in the year. Retail in particular benefited from a return of the consumer's mood. Despite the nationwide economic crisis, the Berlin labor market remains relatively stable: the number of open spots in November was 21,433 places 5.8 percent above the previous year's value.

A significant challenge remains the shortage of skilled workers, which limits the number of qualified workers available. Compared to the previous year, the number of unemployed in the region rose by around 14,000 people. Economic Senator Franziska Giffey emphasizes that Berlin's digital industry in particular, including FinTech, Health Tech and Games, offers enormous growth potential. The IBB also points out that the number of jobs rose by 0.2 percent compared to September 2023, which indicates a stable labor market, despite the nationwide. According to the IBB reporting, Berlin's role underline Berlin's role as an important location for new companies and existing scale-ups in Germany