→ Main article: Economy of Berlin
In 2019, the nominal gross domestic product (GDP) of Berlin was €153.3 billion. In terms of nominal GDP, Berlin is the largest urban economy in Germany and the third largest within the European Union.
Between 2009 and 2019, GDP rose by an annual average of 4.5%, compared with 3.5% nationwide. In 2019, GDP per capita in the state of Berlin amounted to 41,967 euros, exceeding the national average for the first time since 1990. The number of people in employment in Berlin in the same year was around 2.064 million. This was 2.4% more than in the previous year.
According to the Social Report 2019 of the Office for Statistics, 16.5% of the population in Berlin was at risk of poverty. In contrast, 9.1% of the population lived above the wealth threshold in income wealth. In 2016, 489 income millionaires lived in Berlin. By 2019, this number had increased by more than 50% across Berlin to 749 income millionaires.
Berlin's most important economic sectors are the creative and cultural industries, tourism, biotechnology, medical technology, the pharmaceutical industry, media/information and communications technology, the construction industry, retail, transport systems technology, optics and energy technology. Around 80 % of Berlin's total economic output is generated by the service sector.
The key location factors of the Berlin-Brandenburg capital region include the renowned university and research landscape, the cultural attractiveness of the metropolis, a large number of academically trained employees, the proximity to the seat of government of the Federal Republic of Germany, the international reputation of the metropolis, access to venture capitalists, and the highly differentiated local transportation infrastructure and medical care. In various international studies and rankings, Berlin's quality of life is also rated as very above average.
One of the biggest problem areas for Berlin's economy is the birth rate, which is too low by international standards, and the high level of childlessness in large sections of the population. In the medium and long term, this could lead to an increasing shortage of skilled workers and a loss of innovative capacity. In the 2019 Future Atlas, the city of Berlin ranked 93rd out of 402 counties, municipal associations and independent cities in Germany. Berlin's greatest strength, according to the report, is the city's high level of dynamism, while its comparatively low level of value creation is its greatest weakness.
Company
Of the 30 German corporations listed on the DAX, Delivery Hero SE, Deutsche Wohnen SE and Siemens AG (shared with Munich) have a nominal headquarters in Berlin. Berlin is thus currently the city with the second most Dax companies in Germany after Munich. Among the companies with the highest turnover in the world (Fortune Global 500), Deutsche Bahn AG with its Berlin headquarters is listed at position 232 in 2020. Of the 50 MDAX companies, HelloFresh SE, Rocket Internet SE and Zalando SE are headquartered in Berlin in 2020. In the same year, two other Berlin companies were listed in the SDAX. The family-owned company with the highest turnover in Berlin is the confectionery manufacturer August Storck.
After the year 2000, Berlin recorded a very above-average number of start-ups compared to other German and European cities. New companies were established in a wide range of sectors. Both German and international young entrepreneurs realized their business models in Berlin. In 2015, 41,400 companies were created. In relation to 10,000 inhabitants, there were 29 new businesses in Berlin (national average: four). Due to the dynamic nature of newly created companies, Berlin is ranked among the ten outstanding start-up locations worldwide. In 2019, 60 percent of the invested capital in Germany was invested in Berlin-based companies. In 2019, Berlin's start-up companies received 3.5 billion euros, comparatively the most venture capital nationwide.
| The ten largest companies represented in Berlin by employees in 2020 |
| Rank | Name | Headquarters | Employee Berlin | Industry |
| 01. | German railroads | Berlin | 20.770 | Transport/Logistics |
| 02. | Charité | Berlin | 17.527 | Health |
| 03. | Vivantes | Berlin | 16.136 | Health |
| 04. | Berlin transport company | Berlin | 14.589 | Traffic |
| 05. | Siemens | Berlin/Munich | 11.600 | Electrical engineering |
| 06. | Edeka | Hamburg | 10.625 | Trade |
| 07. | Daimler | Stuttgart | 010.200 | Automotive |
| 08. | German Post DHL | Berlin | 010.000 | Logistics |
| 09. | German Telekom | Berlin | 08.000 | Telecommunications |
| 10. | Zalando | Berlin | 07.300 | Digital Economy |
The strong presence of well-known companies in Berlin cannot hide the fact that the city's economy has lost a considerable amount of industrial jobs in recent decades as a result of company closures and relocations (e.g. General Electric, Philip Morris, Daimler and others). In particular, numerous manufacturing jobs were lost in the 1990s and 2000s. In the years following reunification, around three-quarters of industrial jobs were lost, although the trend began to reverse in the 2010s. The relative share of manufacturing jobs is significantly lower than in other major German cities.
See also: List of hospitals in Berlin
Tourism
Berlin is one of the most visited centers of national and international city tourism. In 2016, around 31 million overnight stays were recorded in Berlin accommodation establishments, with over 12.7 million guests. This represents an increase of about 250% compared to 2001 (11.3 million overnight stays by 4.9 million guests). The city is thus a preferred tourist destination within Europe after London and Paris.
In 2015, Berlin's lodging landscape consisted of 814 accommodations with a bed capacity of around 136,000 and an average occupancy rate of 60.5%. The average length of stay of hotel guests is 2.4 days. International guests account for about 40% of the visitor numbers. Here, visitors from the United Kingdom, Italy, the Netherlands, Spain and the United States are in the top group. The main attractions are architecture, historical sites, museums, festivities, shopping, nightlife and major events, which attract several hundred thousand visitors annually.
Due to the positive development, the tourism industry in Berlin has become an important pillar of the regional economy. In addition to the hotel and restaurant industry, the retail trade also benefits greatly from Berlin tourists.
Trade fair and congress industry
Berlin is one of the world's trade fair and congress locations with the highest attendance and turnover. In 2011, some 115,700 events were held with around 9.7 million participants. According to ICCA statistics, Berlin is ranked first among all congress cities in terms of the number of congresses with international participation in 2015.
The exhibition grounds in the Westend district of Charlottenburg-Wilmersdorf around the radio tower were opened in 1921 with an automobile exhibition, at that time in a single exhibition hall, and have an indoor exhibition area of 160,000 square meters and an outdoor area of about 100,000 square meters. It is operated by Messe Berlin, which is 99% owned by the city.
A large number of internationally relevant flagship trade shows are established at the Berlin Exhibition Grounds (Berlin ExpoCenter City) and at the Berlin ExpoCenter Airport in Brandenburg. These include the consumer electronics trade fair IFA, the tourism trade fair ITB, the aerospace show ILA Berlin Air Show, the rail transport trade fair InnoTrans, the agricultural show Grüne Woche, the food trade fair Fruit Logistica and the trade fair for eroticism & adult entertainment Venus Berlin. The European Film Market takes place during the Berlinale in the Martin-Gropius-Bau.
The congress industry, which includes international, national and local conferences, information events and business meetings of all kinds, is another branch of Berlin's economy. A large number of hotels are geared to conferences and generate an important part of their annual turnover with them.
Health Economics
With a gross value added of 10.7 billion euros in 2009, or a value added share of more than 13% of the city's overall economy, the healthcare industry is considered one of Berlin's growth engines. It includes the health and social services sector, the pharmaceutical industry, specialist, retail and wholesale trade, and medical technology. Health care and social services account for by far the largest share (66 %) of gross value added.
A total of 226,000 people, or 14% of Berlin's workforce, are employed in the healthcare industry. Of these, 79 % work in the health and social services sector and just under 6 % each in manufacturing and trade.
The Berlin-Brandenburg capital region is one of Europe's leading locations for biotechnology. Around 200 small and medium-sized biotechnology companies and more than 20 pharmaceutical companies with around 3,700 employees are active in production, research and development in Berlin-Brandenburg.
Creative Industries
Berlin is one of the leading locations for the information and creative industries in Europe. The economic sector includes the book and press market, software development, telecommunications services, the advertising market, market research, the film and broadcasting industry, the art market, the music industry, the architecture industry, the design industry and the performing arts market.
The creative and cultural industries are an important location and economic factor in Berlin and are growing continuously. In 2017, more than 41,000 mostly small and medium-sized enterprises with around 202,000 employees generated sales of €25.7 billion, accounting for more than 15% of total sales in Berlin's economy. The software/games/information and communications technology sector, the book and press market, and the film and broadcasting industry represented the largest revenue drivers.
The textile and fashion industry also has an important location in Berlin. In total, there are over 2,500 companies in Berlin with more than 22,000 employees in the fashion industry (as of 2017). Its flagship event is the Berlin Fashion Week, which takes place annually in January and July, along with a large number of accompanying fashion fairs.
In Europe, Berlin is one of the leading centers of the Internet industry. In the 2015 European city rankings, the metropolis took first place in terms of investment in the industry, ahead of London, Stockholm and Paris.
Media
→ Main article: Media in Berlin
A large number of television stations, radio stations, publishing houses, film companies, music labels, print media, advertising agencies, producers of computer games, press services, social networks and Internet media are based in Berlin.
More than 20 news agencies from around the world have offices in the city, including dpa, Thomson Reuters, AFP and ANSA. The public broadcaster rbb and the private broadcasters TV Berlin and Welt are based in Berlin. Most German national broadcasters such as Das Erste, ZDF and RTL operate studios and editorial buildings. Television producers such as Deutsche Welle have branches in the city. More than 30 radio stations with local and national coverage broadcast their programs from Berlin.
With 151 publishing houses in 2016, Berlin is one of the most important publishing locations in Europe. Axel Springer SE is one of the largest European media groups in terms of sales. The education and science publishers Walter de Gruyter, Cornelsen Verlag and the internationally active Springer Nature Group are based in the city. Important general-interest publishers include Berliner Verlag, Aufbau Verlag and Suhrkamp Verlag.
No other German-speaking city publishes more daily newspapers and their Internet portals. The most widely read national daily newspapers include Bild and Welt. The taz should also be mentioned here, probably the largest newspaper operated as a cooperative. Daily local newspapers and their Internet offshoots are the Berliner Zeitung, the Berliner Morgenpost and Der Tagesspiegel. Berlin also has the local tabloids B.Z. and Berliner Kurier and city magazines such as tip and the English-language Exberliner. Magazines produced in Berlin include Focus, Cicero and Capital.
Due to the high concentration of producers in the media and entertainment industry in the city, Berlin was one of the world's top ten media locations in terms of revenue in 2014.
Industry
The industrial sector, which includes 333 companies with around 79,300 employees, generated sales of 23.5 billion euros in 2017. The producers with the highest turnover in the manufacturing sector are manufacturers of chemical products (8.2 billion), food industry (2.3 billion), mechanical and plant engineering companies (2.1 billion) and electrotechnical industry (4.5 billion).
Founded in Berlin in 1847, Siemens operates an important site in Siemensstadt and produces gas turbines for the international market in the Mitte district. The Mercedes-Benz plant Berlin of today's Daimler AG, founded in 1902, is one of the largest industrial employers in Berlin with about 2500 employees. A wide variety of vehicles are manufactured at the plant in Marienfelde.
The BMW Berlin plant in Spandau, which opened in 1969, employs around 2,000 people. The plant produces around 700 motorcycles a day for the world market.
Stadler Rail, a Swiss manufacturer of rail vehicles, operates a plant in Pankow. In Tempelhof, the baked goods manufacturer Bahlsen and Procter & Gamble produce goods for the German and European markets. In Reinickendorf, the Berlin food manufacturer Freiberger Lebensmittel operates one of the largest pizza factories in Europe.
Trade and finance
Berlin is one of the highest-turnover locations for stationary retail in Europe. All forms of retail are represented in the city, from international retail chains operating prestigious flagship stores in Berlin to a large number of shopping centers and individual store concepts in lively neighborhoods. In 2014, there were 65 shopping centers in Berlin. Among the best-known retail operations is KaDeWe.
Berlin is Germany's highest-turnover location for real estate trading. In 2015, Berlin land and real estate worth €8 billion was traded. The annual turnover generated by real estate transactions in Berlin from 2007 to 2016 was between 6 and 17 billion euros. From 2007 to 2013, turnover in absolute terms and its share of nationwide turnover developed in parallel. This changed in the first year after Berlin applied the options under the Rent Law Amendment Act: While absolute turnover continued to rise until 2015, as in previous years, its share of nationwide turnover fell. From 2015, when the Mietpreisbremse was introduced, absolute turnover also fell.
Founded in 1695, Börse Berlin is a regional stock exchange and is headquartered in Ludwig Erhard Haus. The annual turnover of the stock exchange was about 56 billion euros in 2017. 48 credit institutions and 25 financial service providers participated in trading.
After 2000, Berlin has become an important location for e-commerce companies. Among the most successful retailers are Zalando, Home24 and kfzteile24.
Major banks based in Berlin include Deutsche Kreditbank (DKB), a wholly owned subsidiary of Bayerische Landesbank, and Berliner Sparkasse, a public-sector credit institution. The Sparkassen-Finanzgruppe, which comprises more than 600 decentralized financial services companies in Germany, is also headquartered in the city. Investitionsbank Berlin (IBB) is the central development institution of the state of Berlin. The largest private banking institutions include Berlin Hyp, Weberbank, Quirin Privatbank and N26.
Since around 2015, Berlin has been the city with the largest number of private venture capital companies in Germany. Around a quarter of all investment companies in the country are based there.