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Haunted by its communist past, Berlin fares poorly economically when compared to other key German cities. In 2016, its GDP per capita stood at USD37,200, lagging behind Munich (USD67,900), Frankfurt (USD59,800) and Hamburg (USD52,800). However, Berlin is a dynamic city. Its total GDP grew by 12% in real terms over 2011-2016, while statistics on tourism (31 million overnight stays in 2016) and start-ups (USD2.1 billion worth of financing in 2015) reached record levels.
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In 2016, Berlin's labour productivity reached USD70,600. Due to a lack of leading companies and its socialist legacy, Berlin's labour productivity is 7.1% lower than in the rest of the country, and is 39% lower than Munich's and 25% lower than Hamburg's.
Yearly average disposable income per household in Berlin came to USD40,800 in 2016, 22% below that in the rest of the country. The gap is not only driven by lower labour productivity in Berlin but also by its higher rate of unemployment, as well as smaller household sizes than in other parts of Germany.
Transport and housing excluded, consumer expenditure per household in Berlin was 11% lower than in the rest of Germany in 2016. Due to the high level of tourist activity in the city, hotels and restaurants is one of the few consumer categories that records higher household spending when compared to the rest of the country.
Household spending on housing and transport in Berlin was 23% lower than elsewhere in the country in 2016. Household outlays on transport in the city are especially low (34% below the rest of Germany in 2016), in light of Berlin's lower motorisation rate (400 passenger cars per 1,000 people in 2016, versus 560 in the rest of the country).
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