Bolt set a time of 19.19 seconds to demolish the previous record of 19.30 he set in winning Olympic gold last summer in Beijing.
The 22-year-old finished well clear of the field, with silver medallist Alonso Edward finishing in 19.81.
Wallace Spearmon of the United States took bronze.
Bolt, who also smashed the 100m record in Berlin on Sunday, is now the first man to hold the 100 and 200m World and Olympic titles at the same time.
After a nervy opening which saw Frenchman David Alerte false start, Bolt streaked off the blocks and took the lead within 20m.
He put on the afterburners around the bend to leave the chasing pack trailing in his wake and after storming over the line, Bolt glanced down to the electronic display and pointed at his historic time.
Earlier in the week Bolt had said he did not think a 200m record was on after missing a month of training earlier this year following a car crash in Jamaica.
And after the 200m Bolt told BBC Sport: "I can definitely say I didn't expect that because I was a little bit tired.
"I said let's try because people are really looking out for this, I said it won't hurt to try. So I tried really hard and now I'm really tired.
"Maybe next time I should just run the 200m or the 100m alone. My form was going backwards. I wasn't running upright. It wasn't a good race but it was a fast one."
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