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IBB Sees Berlin Growth Accelerating to 1.8% in 2026

The outlook rests on higher state outlays rising to €5.8 billion next year, supported by a federal special fund.

Overview

  • Public investment is identified as the main growth driver, with state economic expenditures projected to reach €5.8 billion in 2026.
  • Planned spending prioritizes public transport upgrades as well as bridge and road construction to modernize infrastructure.
  • Housing policy foresees a doubling of subsidy funding, alongside substantial commitments to digitalization.
  • IBB estimates Berlin’s 2025 growth at about 1%, still above the national average though the gap is narrowing.
  • The report flags labor-market weakness, citing a sharp year-on-year drop in September social-insurance employment and unemployment above 10%, as CEO Hinrich Holm urges coordinated action with digital education and targeted investment.