Mario Ohoven, president of Germany’s BVMW association. (picture alliance/dpa)
Eastern Germany has made considerable economic progress since the fall of the Berlin Wall both in terms of international trade and productivity, according to the president of Germany's BVMW association for small and medium-sized enterprises.
"You can see this particularly in the mechanical engineering and manufacturing sectors," BVMW-president Mario Ohoven told dpa.
The state of Saxony benefits here particularly from Europe's single market, he said. With 58 per cent of exports, Europe is currently the state's most important export market.
"The European Union's expansion to the east has had a very positive effect on Saxon exports," Ohoven said. In 2002, exports to Poland had a value of 450 million euros; in 2018, they had reached 2 billion euros - a more than fourfold increase.
When it comes to imports, the Czech Republic plays a significant role. The country is Saxony's largest supplier of goods, with a share of nearly 20 per cent.
"It shows the growing importance of other EU countries for the Saxon economy," Ohoven said. Delivery of goods from and to Poland and the Czech Republic is impacting the Saxon foreign trade like never before from the perspective of small and medium-sized businesses.
But progress is still needed in Saxony and other eastern German states when it comes to broadband expansion, according to the association president.
Most of the medium-sized companies are located in rural areas, making the extension of broadband internet to their workplaces crucial. On the other hand, many small and medium-sized firms also have to make efforts to keep pace with digitalisation.
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