Berlin on the fast track: soon to be the economic capital of Germany?

Berlin on the fast track: soon to be the economic capital of Germany?

Berlin could soon overtake Munich as the economically strongest city in Germany. According to the recent report by World Forecasts from Oxford Economics show that the capital wins thanks to its robust economic prospects and high attractiveness for young people compared to Munich, which ranks 22nd in the “Global Cities Index”.

The economic indicators between the two cities are close; Munich has a gross domestic product of $283 billion, while Berlin has a gross domestic product of $280 billion. This illustrates the narrow lead that Munich currently holds. Nevertheless, Berlin's rise, particularly in the creative and technology sectors, is promising.

Rankings and international comparisons

In a comprehensive analysis of the “Global Cities Index”, five cities from Germany performed well. In addition to Munich and Berlin, Hamburg (39th place), Frankfurt (62nd place) and Düsseldorf (99th place) also rank in the top 100. With Zurich (16), Geneva (25), Basel (42), Bern (48) and Lausanne (59), Switzerland has five cities that are listed in high ranks. Vienna from Austria also comes in 36th place.

The global leadership claim of metropolises remains strong: New York is in first place, followed by London and Paris. Also significant is the preponderance of English-speaking cities in the index, with 34 US cities and further representatives from the United Kingdom, Australia and Canada. While Hong Kong is the only Chinese city in the top 100 at number 72, a strongly Western-oriented picture of global economic performance emerges.

The Global Cities Index methodology

The Global Cities Index is created by Oxford Economics and takes into account quantifiable metrics on the attractiveness of city economies. The team, consisting of over 40 economists, uses comprehensive analyzes of urban dynamics and economic forecasts. The index targets various sectors such as finance, real estate, infrastructure, logistics and government, and provides not only rankings but also detailed urban forecasts, scenario modeling and tailored advice.

This comprehensive approach helps governments, investors and large companies make strategic decisions and enables in-depth analysis in areas such as labor market analysis and infrastructure planning.