- Investment bank: Berlin is better off than Germany
The CEO of Berlin Investment Bank (IBB), Hinrich Holm, sees the economic outlook for the region optimistically. "Berlin is in a better position than the rest of Germany," he told the 'Berlin Morning Post' (Saturday). For years now, its economic growth has been above the national average. "We expect a two percent increase in Berlin this year, compared to around zero for the whole country," said Holm.
"Industry contributes a fifth of the economic output in Germany, but only seven percent in Berlin. That means we don't feel the pressure on industry, for instance in energy issues, as strongly here," he explained. "We're growing significantly in the service sector, with local businesses also increasing their turnover. This includes many parts of the thriving startup scene."
Berlin remains a key startup hub
Berlin continues to be by far the strongest location for startup companies in Germany, despite other regions catching up. "2022 was very strong, 2023 was a bit weaker, but 2024 is looking good," said Holm. "In our business, we've made a good start, participating in 20 funding rounds. That part is working well, even if the number of new startups has decreased slightly."
Especially the digital and health economies are driving growth in Berlin. "We have a unique selling point here in Berlin. The Charité, with its nearly one million patients a year, provides a wealth of data that's becoming increasingly accessible, allowing startups to build on it. We're seeing the most dynamism in artificial intelligence, or pattern recognition," said Holm.
"The growth in the service sector and the thriving startup scene in Berlin have contributed to IBB, led by Hinrich Holm, maintaining a positive outlook for the bank."
"Despite challenges in other sectors, Berlin Investment Bank (IBB) continues to profit from Berlin's status as a key hub for startup companies, particularly in digital and health economies."
