Eastern Europe Drives Growth in Germany’s Export Sector
Germany’s export industry, under pressure from high U.S. tariffs and a slowdown in China, saw renewed strength this year thanks to rising trade with Eastern Europe, according to the country’s Eastern Business Association.
Exports to 29 countries across Central and Eastern Europe and Central Asia rose by 2.35% to €216 billion ($251 billion) between January and September. In comparison, Germany’s total exports grew only 0.3% during the same period as shipments to both the U.S. and China declined sharply.
The nation also recorded a record trade deficit with China, with exports down 11.9%, while exports to the United States fell 7.4%, largely due to Washington’s tariff policies.
Eastern Europe Emerges as a Reliable Trade Partner
According to Cathrina Claas-Muehlhaeuser, chairwoman of the Ost-Ausschuss Eastern Business Association, Central and South-Eastern European EU states remain reliable partners for Germany’s export sector.
Exports to Poland and the Czech Republic, the region’s two largest markets, increased by nearly €5.6 billion. However, exports to Kazakhstan, Kyrgyzstan, Armenia, and Georgia declined, and trade with Russia and Belarus continued to shrink because of sanctions linked to the war in Ukraine.
In total, trade with the wider region rose 2.9% year-on-year to around €413 billion, highlighting the growing importance of Eastern European markets for Germany’s trade outlook.
Germany Urged to Deepen Regional Ties
Claas-Muehlhaeuser emphasized the need for Germany and the European Union to strengthen economic and political ties with countries in Central Asia and the South Caucasus, especially amid increasing competition from China and the U.S.
She called on the EU to use its Global Gateway investment program to safeguard access to these emerging growth markets, while also pushing for the removal of trade barriers and a faster eastward expansion of the European single market.
($1 = €0.8575)
