Significance of the
German economy
for Europe

The national economies of Europe are closely interlinked. In 2022, 51 percent of German imported goods came from the EU. As the largest national economy in Europe German demand for goods also generates value added and employment in the other member states. The effect this has in the individual countries is shown in a new study that we conducted on behalf on the vbw – Bavarian Industry Association.

Germany has strong links with the other EU countries

The core results of the study:

• In 2022, the Netherlands topped the list of the most important EU supplier countries with an import value of around 176 billion euros. They were followed by Poland (89 billion euros), Belgium (87 billion euros) and France (79 billion euros).
• For many EU countries, Germany is their most important trading partner. For countries like Austria, Hungary, Poland and the Netherlands, more than a quarter of their total export went to Germany. In 2022, for the Czech Republic, this figure was at a third.
• German import demand for the Central Eastern European region is particularly significant: In the year 2022, around 5.5 percent of the total economic output in the region came as a result of German demand for goods.
• German import demand generates around 300 billion euros in value added EU-wide. In 2022, with 42 billion euros, France stood in first place, followed by the Netherlands (35 billion euros) and Poland (34 billion euros).
• Furthermore, German import demand also generates employment: it assures around 5 million jobs EU-wide.

Success of the German economy benefits the whole of the EU

A scenario calculation illustrates, moreover, to what extent the remaining EU countries benefit in the case where Germany sees the most dynamic economic development possible. The result:

• No other country in Europe comes close to being as significant for the economic dynamic in the whole of the EU.
• The relatively strong impacts of higher levels of German economic growth on the rest of the EU can to a certain extent be explained by the above-average size of the German economy.
• In addition, in terms of foreign trade, Germany has above average connectivity with the remaining EU countries. 

Our approach

For the purpose of the study, we analysed the proportion of Germany’s foreign trade integration with the other EU member states. Next, on the basis of a multi-regional input-output model, we calculated the extent to which German demand secures value creation and employment in the EU. By means of a scenario analysis using the macroeconomic VIEW model, in a last step, we estimated the significance of Germany’s economic growth for the growth dynamic of the EU as a whole.

Links and downloads

About the study (PDF, vbw website in German)

Project team: Dr Michael Böhmer, Jan Limbers, Johann Weiss, Eva Willer

Latest update: 13.06.2024