Saxony-Anhalt achieves record exports/ Companies defy international crises

Economics minister Willingmann presents 2017 foreign trade balance sheet

Last year, Saxony-Anhalt’s companies sold goods of a total value of EUR 15.44 billion to foreign countries. The value of goods rose by approximately four per cent year on year, thus reaching the highest level since the Reunification in 1990. This is revealed in the 2017 foreign trade balance sheet, which economics minister Prof Armin Willingmann presented in Magdeburg on Tuesday. “The impressive foreign trade balance sheet proves that our state’s economy is performing well and has become more competitive internationally,” explained Willingmann. “Despite numerous crises worldwide, our companies have succeeded in tapping into new sales markets and increasing their international presence.”

For the local exporters, trade within the European Union continues to be of the greatest importance. Approximately 78 per cent of all goods were delivered to neighbouring European countries, with only around 12 per cent going to Asia and 7.5 per cent to America. This is also reflected in the ranking of the ten most important export countries: As in previous years, most goods from Saxony-Anhalt were sold to Poland, at a value totalling well over EUR 1.5 billion. Other important target markets were Great Britain, the Netherlands, France, Austria and Italy. China and the USA were next in the ranking in places eight and nine, with export volumes of approximately EUR 778 million and EUR 766 million respectively.

Willingmann was also pleased about the development of trade with Russia: despite current sanctions for selected goods, companies from Saxony-Anhalt delivered goods of a total value of approximately EUR 342 million to the country in 2017 – equating to a 2.2 per cent share of the total exports from Saxony-Anhalt. The value of goods rose by 13.5 per cent year on year and is thus approaching the pre-crisis level of 2013 (2.9 per cent). In the ranking of export partners, Russia is in 14th position. “The balance sheet confirms the level of exports to Russia from Saxony-Anhalt, which has existed for a considerable period of time. In spite of sanctions imposed from both sides, there is growth in trade in goods, both here in our state and across Germany. Certainly, at macroeconomic level, the export share is manageable – as has been the case since the middle of the last decade,” explained Willingmann. 

Imports increase heavily

2017 also saw a clear increase in imports to Saxony-Anhalt. The value of imports increased year on year by 10.3 per cent to EUR 16.3 billion – also a record figure in the foreign trade history of Saxony-Anhalt. Unlike with exports, imports (especially of petroleum and natural gas) from Russia are particularly weighty, with a value of goods of more than EUR 3.5 billion. In the ranking of the most important import countries, Russia is followed by the Netherlands, China, Poland and France.

With a view to the export and import balance (EUR 15.44 billion/EUR 16.3 billion), overall there is a trade balance deficit of approximately EUR 900 million for the economy in Saxony-Anhalt for 2017. However, in the view of the economics minister this is not necessarily bad news. “Higher imports, such as of oil or other raw materials, are frequently connected to higher production of the local industrial economy,” said Willingmann. Thus, there was no reason for concern.

Willingmann criticises US punitive tariff duties

However, the minister is much more critical of the efforts of the US government to wall off its own market and to raise punitive tariff duties on steel, aluminium and cars. “A government has never succeeded in protecting its local economy in the long term with punitive tariff duties,” explained Willingmann. “Customs duties are poisonous to global trade and endanger prosperity everywhere. And sooner or later they also hit consumers.” Should US President Donald Trump not back off from his plan, the European Union would, says Willingmann, have no option but to take severe countermeasures. “However, I hope it does not come to that, as there are usually only losers in trade wars. Even if the US President evidently sees that differently.”

For Saxony-Anhalt, a trade conflict with the USA would be disadvantageous. Last year, companies from Saxony-Anhalt delivered goods of a total value of EUR 766 million to the United States, including pharmaceutical products, copper alloys and glass. The USA currently occupies ninth place in the export ranking. In terms of imports, the USA has so far played a more subordinate role, with goods of a total value of EUR 167 million having been imported to Saxony-Anhalt from there last year.

Support for companies’ foreign trade activities

In the coming years, the state government wants to continue to support the local economy actively in its foreign trade activities. The aim is, in particular, to facilitate market access opportunities for local companies. For this year, economics minister Willingmann is planning delegation trips to the USA, China and Russia. In addition, the minister wants to reform trade fair funding. The plans include the introduction of lump sums in trade fair funding and a considerable debureaucratisation of the funding process. The new trade fair funding is to benefit small and medium-sized enterprises from Saxony-Anhalt in particular, who otherwise would hardly be able to afford the costs of holding presentations at international trade fairs. Moreover, the 2018 Foreign Trade Day – which will focus on international partnerships in business and science – takes place on 10 April.

Source: www.presse.sachsen-anhalt.de

(As in the previous years,) Russia is not among the TOP 10 export countries of 2017:

14        Russian Federation 341,573,631