German-Austrian Trade Falls Again in 2024
- Persistent economic weakness in both Germany and Austria has lead to a second consecutive year of declining trade between the two nations.
- While Germany remains Austria's most significant trading partner, and vice versa, German exports to Austria, along with imports, fell by 5.7% in 2024, according to the Federal German...
- Pötsch believes a "real turning point" is necessary, given "new geopolitical realities, the conversion of energy supply and structural changes in the labor market." He advocated for reducing...
German-Austrian Trade Declines Amid Economic Concerns
April 30, 2025
Persistent economic weakness in both Germany and Austria has lead to a second consecutive year of declining trade between the two nations. Hans Dieter Pötsch, president of the German Chamber of Commerce in Austria (DHK) and head of the VW supervisory board, urged bolder and faster joint action during a recent press conference. He emphasized the need to address labor and energy costs,reduce bureaucratic hurdles,and boost innovation.
While Germany remains Austria’s most significant trading partner, and vice versa, German exports to Austria, along with imports, fell by 5.7% in 2024, according to the Federal German Statistical Office.Investment goods, including machines, machine tools, and chemical products, were especially affected. The automotive sector proved more resilient.German exports to Austria totaled 77.2 billion euros, while imports reached 51.5 billion euros. The Chamber of Commerce reports approximately 4,900 German companies operate in Austria. Rewe, a retail group with brands like Adeg, Billa, Bipa, and Penny, is among the largest.
Call for a “real Turning Point”
Pötsch believes a “real turning point” is necessary, given “new geopolitical realities, the conversion of energy supply and structural changes in the labor market.” He advocated for reducing energy and labor costs, streamlining bureaucracy, and implementing targeted investment incentives to improve the economic climate.”If we want to secure production in our countries, we need a reliable energy supply with predictable prices,” Pötsch stated at the press conference, alongside Gabriel Felbermayr, head of the Austrian Institute for economic Research (WiFo). He also called for measured tariff adjustments and a reduction in non-wage labor costs. Pötsch proposed a “real deregulative offensive” for Europe.
Felbermayr highlighted the potential economic benefits of completing the EU internal market, which he said could lower energy and financing costs and address the shortage of skilled workers. He stressed that German and Austrian industries require “reliable framework conditions – at home and abroad,” including free trade agreements with Mercosur countries and australia, and a potential agreement with the United States.
WiFo Head Urges Action Plan
Felbermayr expressed hope for a change in direction from the new governments in Vienna and Berlin. “If you want to turn the mood, you need a plan,” he said, emphasizing the need to “arouse confidence in companies and consumers.” He added,”The chances are good that such an agenda will be implemented.”
German Chancellor friedrich Merz has pledged to ease the debt brake for defense and establish a special investment fund. A significant portion of the 500 billion euro fund is expected to be allocated to infrastructure projects, including bridge repairs and rail network improvements. Austrian Finance Minister Markus Marterbauer (SPÖ) presented his budget for 2025/26 in mid-May, which includes austerity measures designed to minimize the burden on the economy and employment.
With predictable prices,” Pötsch stated at the press conference, alongside Gabriel Felbermayr, head of the Austrian Institute for economic Research (WiFo). He also called for measured tariff adjustments and a reduction in non-wage labour costs. Pötsch proposed a “real deregulative offensive” for Europe.
Felbermayr highlighted the potential economic benefits of completing the EU internal market, which he said could lower energy and financing costs and address the shortage of skilled workers. He stressed that German and Austrian industries require “reliable framework conditions - at home and abroad,” including free trade agreements with Mercosur countries and australia, and a potential agreement with the United States.
WiFo Head Urges Action Plan
Felbermayr expressed hope for a change in direction from the new governments in Vienna and Berlin. “If you want too turn the mood,you need a plan,” he said,emphasizing the need to “arouse confidence in companies and consumers.” He added,”The chances are good that such an agenda will be implemented.”
german Chancellor friedrich Merz has pledged to ease the debt brake for defense and establish a special investment fund. A meaningful portion of the 500 billion euro fund is expected to be allocated to infrastructure projects, including bridge repairs and rail network improvements. Austrian Finance Minister Markus Marterbauer (SPÖ) presented his budget for 2025/26 in mid-May, which includes austerity measures designed to minimize the burden on the economy and employment.
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German-Austrian Trade: Declining Trade and Calls for Action
What is the current state of trade between Germany and Austria?
persistent economic weakness has led to a second consecutive year of declining trade between Germany and Austria.Hans Dieter Pötsch, president of the German chamber of Commerce in Austria (DHK), highlighted these concerns during a press conference.
What were the key figures for German-Austrian trade in 2024?
in 2024, German exports to Austria and imports decreased.According to the Federal German Statistical Office, German exports to austria fell by 5.7%.
What is the trade volume between Germany and Austria?
German exports to Austria: 77.2 billion euros
German Imports from Austria: 51.5 billion euros
Which sectors were most affected by the trade decline?
Investment goods, including machines, machine tools, and chemical products, were especially affected. however, the automotive sector showed more resilience.
How many German companies operate in Austria?
Approximately 4,900 German companies operate in Austria.
What measures are being proposed to improve German-Austrian trade?
hans Dieter Pötsch urged for “bolder and faster joint action.” He emphasized the need to address labor and energy costs, reduce bureaucratic hurdles, and boost innovation.
What is the call for a “real turning point”?
Pötsch believes a “real turning point” is necessary, given “new geopolitical realities, the conversion of energy supply and structural changes in the labor market.” He advocated for reducing energy and labor costs, streamlining bureaucracy, and implementing targeted investment incentives.
What solutions are suggested by Gabriel Felbermayr?
Gabriel Felbermayr, head of the Austrian Institute for Economic Research (WiFo), highlighted the potential benefits of completing the EU internal market, which could lower energy and financing costs and address the shortage of skilled workers. He also stressed the need for “reliable framework conditions,” including free trade agreements.
What specific actions were discussed to improve the economic climate?
The following measures were discussed:
Reducing energy and labor costs
Streamlining bureaucracy
Implementing targeted investment incentives
Measured tariff adjustments & reduction in non-wage labor costs.
Free trade agreements with Mercosur countries, Australia, and potentially the united States.
What are the upcoming changes in Germany and Austria’s financial plans?
German Chancellor Friedrich Merz plans to ease the debt brake for defense and establish a special investment fund.
Austrian Finance Minister Markus Marterbauer presented the 2025/26 budget, including austerity measures to minimize the economic burden and employment impact.
What are the main challenges facing German-Austrian trade?
Based on the article, the main challenges include:
Persistent economic weakness in both countries.
High labor and energy costs.
Bureaucratic hurdles.
Need for innovation.
New geopolitical realities.
* Changing energy supply and labor market dynamics.
Key Players and Organizations
| Association/Individual | Role/Position |
| :—————————————– | :———————————————— |
| Hans Dieter Pötsch | President of the German Chamber of Commerce in Austria (DHK), head of the VW supervisory board |
| Gabriel Felbermayr | Head of the Austrian Institute for Economic Research (WiFo) |
| Friedrich Merz | German Chancellor |
| Markus Marterbauer (SPÖ) | Austrian Finance Minister |
| Federal German Statistical Office | Source of trade data |
| Rewe | Retail group with brands such as Adeg, Billa, Bipa, and Penny |