Berlin and Brandenburg Face Longest Economic Weakness in Two Decades

Regional businesses report stagnation, citing bureaucratic hurdles, high costs, and declining industrial performance as key challenges.

The Berlin-Brandenburg region is experiencing its longest economic stagnation in 20 years, according to a recent survey of 3,000 businesses by regional Chambers of Commerce (IHK).
US-imposed tariffs on steel and aluminum imports have had limited direct impact on local businesses due to diversification and lower export dependency in Brandenburg.
Key challenges identified by businesses include excessive bureaucracy, high energy costs, and outdated infrastructure, which are seen as barriers to growth.
The industrial sector continues to weaken, while the service sector remains a rare bright spot, with companies focused on business-to-business services planning investments in automation and modernization.
Businesses call for urgent government action to reduce regulatory burdens, improve infrastructure, and create stable conditions to encourage investment and innovation.