Investment Bank expects solid economic growth
Berlin's economy has returned to a growth path after the Corona slump, according to Investitionsbank Berlin (IBB).
IBB expects gross domestic product in the capital to grow by about four per cent next year - after an increase of just under three per cent this year. A prerequisite, however, is that the new Corona variant Omikron can be quickly contained, as the state-owned development bank announced on Monday (27 December 2021).
IBB's expectations for Berlin exceed nationwide forecasts
Last year, Berlin's economy still shrank by 3.3 per cent due to the Corona pandemic. IBB's expectations for Berlin are higher than the federal government's forecasts for Germany as a whole. According to the data, the upswing is clearly noticeable on the labour market. Within a year, the number of employees subject to social insurance contributions has risen by another 50,000 to 1.61 million. There was strong growth in the digital economy and in scientific and technical services.
Burdens due to shortage of skilled workers and supply and material bottlenecks.
"The stable foundation of Berlin's economy remains a highly specialised and export-oriented industry, and a dynamic digital economy," said IBB CEO Hinrich Holm, explaining the positive outlook. "Order books in the construction industry are also at a 20-year record high." On the other hand, new restrictions in the pandemic, the shortage of skilled workers and supply and material bottlenecks were weighing on the economy.
Berlin industry turnover exceeds pre-Corona level
Turnover in Berlin's industry has already exceeded pre-Corona levels, according to the bank. "Thanks to a strong upswing in the USA and China, "Made in Berlin" is in demand again internationally," it said. In contrast, the crisis is hitting the hospitality industry with force. In the construction sector, it is becoming more difficult for companies to process the many orders. There is a shortage of skilled workers and building materials, as the investment bank noted. It emphasises: "Even if the pressure on the housing market has eased briefly due to the Corona pandemic, the accumulated demand gap is still not closed and new construction is urgently needed."