Berlin's Economy Shows Upbeat Business Sentiment While Willingness to Invest is at a Record High
According to a recent survey conducted by the Berliner Sparkasse savings bank, Berlin's economy is characterised by peak levels in business sentiment and willingness to invest. The findings of the mid-market survey further suggest that the sales and job expectations have also continued to go up among Berlin-based companies. Berliner Sparkasse polled more than 1,200 entrepreneurs, managing directors and senior staff of small and medium-sized enterprises (SME) in the Berlin metro area for the survey. With a view to these findings, the savings bank expects the economy of Germany's first city to keep outperforming the national growth average in the coming year. Respondent entrepreneurs returned the best possible business sentiment score, and thus the index has achieved its highest level since 2005. Large companies appear to be particularly upbeat.
Companies Anticipate Higher Revenues and More Jobs
One in two companies from the greater metro regions believe they will conclude the year 2016 with an increase in sales, which is four percent more than the number of companies who thought so a year ago. Moreover, two out of three respondents (67 percent) plan to invest in their company in the coming twelve months. Roughly one third of the interviewed entrepreneurs will even create new jobs in 2017. In 2015, barely a fourth of the companies planned to hire new staff in 2016.
The main obstacle and challenge in this context appears to be the lack of skilled labour, more than half of the respondents said (56 percent). The general gist of the survey is that companies, while contemplating massive investments for the future, see their efforts seriously hampered by the excessive red tape in Berlin.
Berlin Poised to Outpace Germany's National Growth Average
Given the positive business sentiment in the city, the experts of Berliner Sparkassen find it safe to say that Berlin's economy will continue to outperform Germany as a whole. The main reason quoted by them to explain the bright outlook is the enormous appeal that Berlin seems to have especially for young people who move to the city and, by joining its labour force, boost its economy.
The favourable trend of recent years is perhaps best expressed in Berlin's unemployment trend, which has dropped back into the single digit range lately.