Berlin-Brandenburg Economy Faces Unprecedented Pessimism in 2025

A survey of regional business associations reveals widespread concerns over stagnation, with only start-ups showing optimism.

57% of surveyed industry groups in Berlin and Brandenburg expect a worse economic year compared to 2024, with only 3% predicting improvement.
The start-up sector, particularly in AI and digital industries, remains a rare bright spot, buoyed by significant investment flows into Berlin.
Key challenges identified include high bureaucracy, energy costs, and a lack of affordable housing, which hinder workforce recruitment in Berlin.
Despite a projected 0.5% growth in the region's economy, the industrial sector faces a deep crisis, marked by reduced investments and job cuts.
The survey, conducted before federal coalition talks, highlights mixed reactions to proposed infrastructure investments and economic policies.