Germany increased volume trade with European countries to record level
2023.02.22 09:51
Germany increased volume trade with European countries to record level
By Tiffany Smith
Budrigannews.com – The German Eastern Business Association reported on Wednesday that German trade with Central and Eastern Europe increased to a new high of 562 billion euros ($597.52 billion) in 2022 despite a significant decrease in German exports to Russia.
As German companies stopped doing business in the country and European Union sanctions targeted Moscow for the war in Ukraine, German exports to Russia plummeted dramatically in 2022. According to the association, in 2022, exports to Russia fell by 45 percent year-over-year to approximately 15 billion euros, the lowest level in two decades.
At the German Eastern Business Association’s spring press conference in Berlin, managing director Michael Harms stated, “The disentanglement from the Russian market is progressing rapidly and will continue in 2023.”
According to Harms, double-digit increases in exports to other markets in Central and Eastern Europe more than offset the decline in exports to Russia.
While Central and Eastern European member states of the European Union gained ground in 2022, German trade with Ukraine, Russia, and Belarus decreased. The business association’s estimates indicate that Romania and Slovakia will soon surpass Russia in terms of trade with Germany.
In terms of volume of trade, this is already the case for Hungary, Poland, and the Czech Republic. With sales of 168 billion euros, Poland was Germany’s fifth-largest global trading partner, trailing only Italy. The Czech Republic joined Germany’s top ten trading partners after passing the United Kingdom.
According to the association, the 29 countries of Central and Eastern Europe continued to contribute 18% of total German foreign trade, which is still more than China and the United States put together.
According to Harms, trade with Ukraine has decreased less than anticipated, falling only 7% in 2022, and it has even been on the road to recovery since late fall. He stated that whenever possible, German businesses operating in the nation have maintained or quickly restored production. “Harms stated that no relevant company has left the country.
The business group asserts that the Russian economy is on the verge of a crisis, whereas the German economy has managed to adapt to a world without Russian energy supplies in a surprisingly short amount of time.
“The sanctions, the withdrawal of foreign companies, and the exodus of hundreds of thousands of young workers are having a toxic effect,” Harms stated, “even though the Russian economy will not collapse overnight.”
Harms asserted that the economy will not collapse despite the diminishing impact of sanctions on Russia. He stated, “Putin will not run out of money for the war.” According to Harms, energy sales had ensured Russia a $220 billion current account surplus in 2022. He predicted that it would still be $100 billion in 2023.
It was emphasized by harms that Europe also imports liquefied Russian gas, which is not subject to the sanctions.
