Portrait of the Regions - DEUTSCHLAND - BERLIN - Economy

Portrait of the Regions - DEUTSCHLAND - BERLIN - Economy

BERLIN - Economy

Economy dominated by small and medium-sized businesses
There are currently approximately 150 000 businesses and establishments listed in the Berlin business register. The Berlin economy is dominated by small and medium-sized businesses. Two-thirds of all workers subject to compulsory social insurance in 2001 were employed in small and medium-sized enterprises and they accounted for 46% of taxable transactions in Berlin. Just 0.4% of all Berlin's businesses (employing over 500 workers subject to compulsory social insurance) do, however, employ one third of all workers subject to compulsory social insurance, who produce 54% of taxable transactions.
Looking at these 150 000 businesses and establishments by sector, just under 23 000 economic units (15%) are economically active in manufacturing industry. Around 125 000 businesses and establishments operated in the services sector in 2003, with just under 43 000 of these businesses (31%) conducting "real estate, renting and business activities" and 33 000 (23%) working in the distributive trade and hotels and restaurants sector.
In 2003, businesses in Berlin in the distributive trade and hotels and restaurants sector reported almost 34% of all taxable transactions in Berlin in 2001, those in the real estate, renting and business activities branch just under 26% and those in manufacturing 25%.
In 2002, the Berlin Gewerbeämter (Offices of Trade) registered just under 33 900 businesses and de-registered just under 29 900. The distributive trades accounted for the largest proportion of these with 30% of the registrations, but also 32% of the de-registrations.
Over 2 000 businesses filed for bankruptcy in 2003, and proceedings were opened by the Insolvency Court for 33% of these applications.

Industry less important
The situation regarding manufacturing industry, including mining and quarrying, has largely stabilised following the turmoil of the 1990s when large sections of Berlin's industrial sector disappeared. The main focuses are the food, beverages and tobacco sector, the electrical industry, printing and publishing and the chemical industry. The total turnover volume of industry in Berlin in 2003 was a good 30 billion EUR, with exports accounting for around one quarter of this.

Berlin, a centre for services
Despite the importance of some industrial sectors, it is services which are dominant in Berlin. In 2002, the combined gross value added of all sectors of the economy (at current prices) was just less than €72 billion. The services sectors together accounted for €59.0 billion, or about 82% of this total. Industry contributed €12.46 billion, or just 17.4%. The value added produced by the construction sector, which had been as high as €5.6 billion in 1995, had fallen to less than half (€2.6 billion) by 2002. The building boom following unification has quickly given way to a structural crisis in the space of the last ten years.

Transport
In 2002, Berlin's road network totalled 5 317 kilometres, 69 km of which was motorway, and was used by some 1.4 million motor vehicles, including just under 95 000 newly-registered vehicles straight from the factory. About 86% of all vehicles are passenger cars. It is calculated that there are 424 vehicles per 1 000 inhabitants, which is low in comparison to the larger Länder.
An average of 503 aircraft per day took off and landed at Berlin's three airports - Berlin-Tegel, Berlin-Tempelhof and Schönefeld - in 2002, carrying a daily total of around 33 000 air passengers. Around 50% of these passengers were on domestic flights, the other 50% flew to foreign destinations. A total of 26 000 tonnes of freight and 16 000 tonnes of air mail were transported during the year.
The volume of goods carried by the rail network in the Federal capital in 2002 came to ca. 4.4 million tonnes, made up primarily of oil products (29%), crude and manufactured minerals (25%) and machinery, transport equipment, manufactured articles and miscellaneous articles (17%).
There has been a long tradition of transporting goods by inland waterway to supply the city of Berlin. In 2002, Berlin's ports handled around 3.8 million tonnes of cargo, 77% of which were incoming goods, mainly consisting of mineral fuels and building materials.

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Text was finalized in June 2004.