Berlin on the rise: Will the capital soon overtake Munich?

Berlin on the rise: Will the capital soon overtake Munich?

In recent years, Germany's economic landscape has experienced noticeable changes. According to a recent report by World Oxford Economics' forecast shows that the race between Munich and Berlin for the position of Germany's most economically powerful city will be more exciting than ever. Munich is currently ranked 22nd in the Global Cities Index, while Berlin follows in 29th place. The other places include Hamburg, Frankfurt and Düsseldorf.

But what exactly does it look like? Munich boasts a gross domestic product (GDP) of $283 billion, while Berlin is close behind with $280 billion. But Berlin has experienced an upswing that cannot be ignored: a robust economic outlook, attractiveness for young people and a flourishing creative and technology sector are bringing a breath of fresh air to the capital.

The Global Cities Index in detail

The Global Cities Index from Oxford Economics assesses not only the size of a city, but also its economic dynamism. To assess the attractiveness of urban economies, quantifiable metrics of interest across different sectors such as finance and infrastructure are used. The elite league of the urban economy is dominated by cities such as New York, London and Paris, while Switzerland has five cities in the top 100 ranking - Zurich at the top at number 16. Austria is also represented with Vienna, which is at number 36.

Interestingly, it turns out that Berlin's rise is not only determined by numbers. The “human capital” in Berlin, which takes into account the age structure and the quality of educational and scientific institutions, is increasingly perceived as an advantage. Here you can probably say: Berlin has the “good hand” when it comes to attracting and retaining young talent.

Economic strength and GDP

When we take a closer look at economic strength, it is important to also consider GDP per capita levels. Despite Munich's impressive overall GDP, the GDP per capita is around 93,000 euros - a ranking that puts the city in 11th place. Berlin, on the other hand, has a GDP per capita of around 49,200 euros, which is in the middle of the federal range, but has grown by 14 percent in recent years, despite some challenges in the start-up sector.

In comparison, cities like Wolfsburg, Ingolstadt and Coburg are in the fast lane economically, with Wolfsburg even leading the way with a GDP per capita of almost 146,000 euros. These numbers make it clear that “big” doesn’t always mean “strong.” Ultimately, economic strength is a question of diversity and the structure of a city IWD shows beautifully.

Overall, it can be said: it remains exciting! The dynamics between Munich and Berlin show that the competition for economic dominance in Germany offers great opportunities for both investors and the young generation of founders. Who knows, perhaps Munich will soon be overtaken by the capital, but one thing is certain: both cities make a significant contribution to the German economic landscape.