Berlin's Economic Growth: Bright Outlook for 2014
More jobs, larger investments, and improving business – corporates in Berlin are in high spirits and maintain a bright outlook. This is the upshot of the most recent business survey conducted by chambers of commerce in Berlin and Brandenburg. IBB Investitionsbank Berlin believes that Berlin will see its economic growth climb up to 2.0 percent this year – compared to just 1.75 percent predicted for Germany as a whole.
Sentiment Improved since 2013
Berlin-based companies consider themselves better positioned both in their current situation and going forward than they did any time last year. Returning a score of 129, the economic climate index achieved the highest level since 1995 at the start of this year. The index is based on a survey among more than 1,500 companies domiciled in the Berlin-Brandenburg region. It suggests that 43 percent of the Berlin-based companies expect business to pick up in the coming months, while 50 percent predict a stable trend, and only seven percent anticipate a deterioration of their business. Corporate benefit not just from the recovery of the eurozone, but also from Berlin's demographic growth and the rise in average income in the city. This explains why one in three companies intends to step up its investments in 2014.
The Medium-Sized Business Barometer by Ernst & Young reaches a similar conclusion: It reports that one in every two mid-market companies in Berlin expect sales to increase, whereas just eight percent worry about a decline. In fact, one in three companies intends to hire. All things considered, this will create new jobs in the tens of thousands in the German capital this year.
Growth through Qualified Humans Resources
Berlin's residents themselves constitute an important basis for the city's economic growth. Slightly more than half of all gainfully employed persons have an academic degree or work in positions that presuppose analogous qualifications. It is the highest ratio of its kind among all of the German states. But Berlin's highly skilled residents fuel the growth not just of local companies. They also motivate companies elsewhere to relocate to Berlin in order to tap into this potential – and to create yet more jobs in the process.