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Berlin to go, english edition, 02/2017

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NEWS TO GO BOOMTOWN

NEWS TO GO BOOMTOWN BERLIN 1 2 3 77,000 jobs in the digital economy According to economists at the Investitionsbank Berlin (IBB), Berlin’s gross domestic product in the first quarter of 2017 was 2.2% and thus considerably stronger than the average in Germany overall (+1.5%). The expected growth in the next couple of months will be driven mainly by business-related services, in particular in the digital economy and construction industry. More than 77,000 people are already working in Berlin’s digital economy in jobs subject to social insurance contributions. In 2017, roughly 2,000 new jobs will be generated in the fintech sector alone. In 2016, Berlin-based fintechs received a total of €258 million in investment capital. That comprised 63% of the total amount invested in Germany in this area. Employment continues to rise In Berlin, the number of persons employed is growing rapidly. In March 2017, the capital had a total of 1.409 million people in jobs subject to social insurance contributions, which marks a 58,700 or 4.3% increase over the same month in the previous year. These numbers show that Berlin continues to have the highest growth rates in new jobs among all federal states. Germany as a whole reached a 2.4% increase in jobs. “We’re seeing a strong growth dynamic especially in the service sector; for example, business-related services now have 15,400 and IT/communications have 8,800 additional jobs subject to social insurance,” explains Ramona Pop, Berlin’s Senator for Economics. Berlin exporters enjoy great start to 2017 Berlin’s very internationally oriented economy was in robust shape at the beginning of 2017. For example, economic output rose in the first quarter by 2.2% (German overall: +1.2%). Exports also developed especially well. In January, exports from Berlin were at €1.2 billion, which is already 10.7% higher than in the previous year. “Berlin has advantages in the production of those high-value capital goods that are urgently needed to expand infrastructure in the USA,” explains Dr. Jürgen Allerkamp, IBB Management Board Chairman. 6

4 5 6 Shortage of skilled employees lowest in Berlin According to a recent study of Berlin companies, Germany’s much-lamented lack of skilled employees is the lowest nationwide in Berlin. As the Cologne Institute for Economic Research reported, in 2016, 35% of jobs were advertized in so-called bottleneck professions. “This means that companies in Berlin have the most relaxed environment in terms of the supply of skilled workers,” the study noted. Berlin attracts thousands of new people each year, including many qualified workers. Millions from GRW Fund for Investments in Berlin In 2017, a total of €128 billion will be available for new investments from the GRW, a joint federal-state scheme for improving regional economic structures in Germany. “The outflow of funds and funding commitments up until now suggest that we can expect another successful investment year in 2017,” notes Senator Ramona Pop. A good half of the funds will flow directly into support for Berlin companies. The other half will go towards investments in the economic structure. Dr. Jürgen Allerkamp voted new Supervisory Board Chairman of Berlin Partner On 11 May 2017, the Supervisory Board of Berlin Partner for Business and Technology chose Dr. Jürgen Allerkamp to become its new chairman. Allerkamp will take up the mantle from Dr. Andreas Eckert, who had led the body since 1 December 2014. Berlin’s Senator for Economics, Energy and Enterprises and Deputy Chairman of Berlin Partner’s Supervisory Board, Ramona Pop, thanked Dr. Eckert for guiding the company through its successful development in the past several years. 7

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