German exporters shipped more products to Poland than to China in the first half of the year, underscoring Germany’s efforts to diversify trade away from the world’s second-largest economy and enhance relationships closer to home.
German exports to Poland increased 4.6% to €48.4 billion ($54 billion) in the first half of 2024, edging past exports to China, which were at €48.2 billion, according to the Committee on Eastern European Economic Relations trade organization. Most imports to Germany still came from China.
Poland has become the fourth-biggest market for German sales. The US remained the top buyer of German goods, the German Federal Statistics Office said Monday, while France and the Netherlands were the second and third biggest markets for German exports respectively.
Poland is currently the fastest growing economy in the European Union. In contrast, Germany is projecting sluggish growth, with the economy registering a 1.6% dip in exports.
Chancellor Olaf Scholz this year signaled an aim to enhance the relationship with Poland, whose government under Prime Minister Donald Tusk has sought to improve ties with Brussels and EU partners after tensions with the previous populist government.
The uptick in exports to Poland and several eastern European countries suggest a diversifying German trade portfolio as Europe’s largest economy positions itself better with trade partners closer to home, the committee said. Central and eastern Europe account for 19% of German foreign trade, it said.
“Heightened geopolitical uncertainties are causing many companies to increasingly produce and trade locally,” Volker Treier, head of foreign trade at Germany’s DIHK industry lobby, said Monday in an emailed statement.
Written by: Michal Kubala @Bloomberg
The post “Germany’s China Exports Slip Below Those to Poland in First Half” first appeared on Bloomberg