For years, Berlin’s economy has lagged behind more prosperous cities in the west and south of Germany. In fact, until as recently as 2016, the GDP per capita of the country would improve if Berlin didn’t exist.
This apparent underperformance, when comparing it to the economic success of other European capitals, can be attributed to a number of historic factors. Germany’s late unification in 1871 resulted in a decentralised economy, while the split of East and West in the aftermath of the Second World War has long stymied growth in the areas around Berlin. The city also had to undergo a long rehealing project following the fall of the Berlin Wall in 1990.
However, high levels of investment are now flooding into Berlin, with a particular focus on startups and technology businesses. Wages are going up, and the city that was once viewed as a cultural and artistic hub is now a viable option for industry too, attracting workers from across the globe.