Berlin on the way to becoming an economic metropolis: Is the city overtaking Munich?

Berlin on the way to becoming an economic metropolis: Is the city overtaking Munich?

Berlin and Munich are in economic competition, which has become increasingly heated in recent years. According to a recent report by World Major German cities like Berlin could gain economic strength. The “Global Cities Index” published by Oxford Economics, shows that Munich is currently ranked 22nd and Berlin is ranked 29th. What's interesting is that the forecasts say that Berlin could potentially soon overtake Munich.

One reason for Berlin's rise is its robust economic prospects and the city's high attractiveness for young people. The burgeoning creative and technology sector also ensures that a lot of talent is flowing into the capital. With a gross domestic product of $280 billion, Berlin is just behind Munich, which generates $283 billion.

Creativity and talent in focus

Berlin's economic rise also has to do with its "human capital", which is characterized by the age structure of the population and the quality of the educational and scientific institutions. Compared to Munich, which is considered an established economic metropolis, Berlin offers a dynamic environment that attracts talent and produces creative companies. This development could lay the foundation for the capital to catch up economically in the near future.

The index itself includes a holistic assessment of 1,000 cities and takes into account not only economic but also social factors. The analysis relates, among other things, to the financial sector, the real estate industry and infrastructure, which is of great interest to many companies.

International perspectives and local strength

In an international comparison, the Global Cities Index shows that cities such as New York, London and Paris take first place. A total of 34 US cities are in the top 100, while Germany is represented by five cities. In addition to Berlin and Munich, Hamburg, Frankfurt and Düsseldorf are also on this list. A completely different picture emerges in Austria, where only Vienna is in the top 100 at number 36.

If you look at economic strength based on gross domestic product per capita, an analysis by IWD, that Wolfsburg takes the top position, followed by Ingolstadt and Coburg. Munich is in eleventh place with a GDP per capita of around 93,000 euros, while Berlin is in the middle with around 49,200 euros, but still above the national average. Berlin's GDP growth of 14% between 2019 and 2022 is impressive, despite challenges in the start-up scene.

The race between Berlin and Munich offers an exciting perspective on the economic development of the two metropolises. If Berlin continues the trend, it could soon be a matter of who takes over the real economic leadership in Germany. Competition for talent and investment will set the course for the future, and it remains to be seen how these dynamic forces will evolve.