The city houses up to 400 companies which have contracts with Britain and almost 120 even have subsidiaries on the island. The companies see a hard Brexit as bureaucratic hassle, many have already begun preparing for the UK leaving the EU. A decrease of imports from Berlin prove the capital is readying itself, according to foreign economic expert of the Berlin Chamber of Industry and Commerce, Jochen Brückmann.
Mr Brückmann told Inforadio: “I’ll give you an example, say you were a Berlin company and you were producing here, for example and you need certain parts from Great Britain for this.
“Highly specialised, right? Then I will have to figure out where I could get the parts from instead. Which is what they have done.
“And this can be seen in the numbers. The imports from GB have significantly decreased, especially when comparing this year to the last.
“The first five months show this very clearly, it has decreased by more than 15 percent, simply because the companies have said ‘well then I will get the parts I need somewhere else’.”
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Mr Brückmann predicted export numbers to Britain are stable but are likely to change in the case of an unregulated EU exit.
He added: “We (Berlin) will lose economic power, also because of Brexit, not as much as other regions in Germany, because Berlin is not as interlinked with GB as for example Baden Wuerttemberg.
“But it likely will decrease export expectations and therefore a hard Brexit would still be the worst of all options.
Mr Brückmann believes he companies are facing profit losses while high tariffs and long queues at the borders could put additional burdens on them.
His predictions come as Germany is surging towards recession as its economy continues to collapse.
But Angela Merkel quitting now would plunge the country into a political crisis for years to come, experts have warned.
Germany’s industrial output plummeted by 1.5 percent in June – a huge acceleration on May’s slight fall of 0.1 percent – and significantly ahead of analyst expectations of a 0.4 percent drop.
This is the latest worrying sign Germany’s economy – the biggest in Europe with a value of £3.9trillion – may have shrunk further in the second quarter.
If contraction occurs in two consecutive quarters, the country will be in a “technical recession”.
Additional reporting by Monika Pallenberg.