Despite global uncertainties and following two years of recession, Brazil's economy is projected to remain stable in 2025, with growth of around 2.5%. Record harvests have enabled the agricultural sector to remain a key driver of growth, while the government's "Nova Indústria Brasil" industrial policy focuses on innovation and digital transformation, sustainability, export expansion, and increased productivity. Trade conflicts, particularly with the USA, and fiscal risks pose challenges. At the same time, infrastructure projects, environmental technology, and agrotech offer new opportunities for cooperation. The Free State of Thuringia recently exported and imported goods worth approximately €200 million to and from Brazil, making it Thuringia's most important trading partner in South America. Dietmar Sukop is available to answer all your questions regarding Brazil.
China recorded solid growth of around 5.3% in the first half of 2025, driven by strong foreign demand as well as public infrastructure programs and subsidies. Despite expansionary fiscal and monetary policies – including interest rate cuts – consumption growth and consumer confidence remain weaker than hoped, while the real estate market continues to be under pressure. China's industrial policy continues to strategically support key sectors such as automotive, mechanical engineering, and electrical engineering, while simultaneously aiming to reduce outdated production capacity. However, President Xi Jinping criticized the over-concentration on AI, e-mobility, and computing power, warning of deflationary competition ("involution") – a shift in thinking that points to structural risks despite nominally high growth rates. For Thuringia, China is by far the most important supplier market, with an import volume of €4.6 billion. Hao Zhi is your contact person in China.
India remains one of the world's fastest-growing major economies: For fiscal year 2024/25, GDP growth was around 6.5%, driven in particular by solid government investment, a robust services sector, and increased construction activity. Meanwhile, inflation unexpectedly fell to a six-year low of 2.1% in June 2025, which further boosted the economy Reserve Bank of India This creates room for further interest rate cuts. Policymakers continue to focus their economic programs on expanding domestic value creation and technologically modernizing the economy. Currently, there is a noticeable trend of many multinational corporations significantly expanding their presence in India. Mike Batra She will accompany you in your business dealings in India.
Israel's economy is feeling the impact of current developments in the Middle East. Nevertheless, the country experienced a cautious but stable economic upswing in the first half of 2025. Following growth of 1% in 2024, forecasts – such as those from the OECD – predict an increase of around 3.4% for the full year 2025. Inflation stood at approximately 3.1% in May, a slight decrease, but still above the target range. At the same time, strong investments in the high-tech sector, foreign investment capital, and a booming stock market are supporting the Israeli economy, although high defense spending, a labor shortage, and the need for structural reforms in the labor market continue to pose challenges. The Free State exported goods worth nearly €100 million to Israel last year. Melanie Hoffmann is available for you in Israel.
South Africa's economy is slowly stabilizing after two years of recession. However, economic growth remains weak – forecasts predict around 1% to a maximum of 1.7% for this year – far from the 5–6% needed for noticeable employment effects. Inflation, at under 4%, is clearly within the target range. This has allowed the central bank to lower the key interest rate from 7.75% to around 7.25% recently, thus supporting consumption. The complete abolition of daily load shedding since the end of 2024 has improved production conditions, but these remain limited by long-term infrastructure bottlenecks. International risks – above all, the threat of US import tariffs and diplomatic tensions with the US – are weighing on export sectors such as the automotive industry and agriculture. Over a third of Thuringia's exports to Africa go to South Africa, and over half of its imports from Africa come from South Africa – making South Africa by far Thuringia's most important trading partner in Africa. Anja Tambusso-Ferraz She is your contact person here.
Economic growth in Vietnam could reach 6.5 to 7 percent in 2025, similar to the previous year. Nevertheless, it is likely to fall significantly short of the government's targets of 8 percent for 2025 and double-digit growth rates from 2026 onward. Particularly within the framework of their "China Plus One" strategy, foreign companies continue to establish production facilities in Vietnam. They benefit from the relatively low wages compared to other countries in the region, favorable investment conditions, and numerous free trade agreements. Vietnam has become one of the world's most important production locations for electronics, clothing, shoes, and furniture. With an export quota of over 90 percent, exports play a significant role in the economy. This makes the country vulnerable to global economic crises—especially with regard to potential US import tariffs. In Vietnam.. Thi Thanh Tam Nguyen We are happy to assist you.
The Central Asian countries have significantly intensified their cross-border economic activities and initiated joint infrastructure projects. Kazakhstan boasts the largest economy in Central Asia and can point to solid growth rates: economic growth of over 5% is targeted for 2025. Risks lie in its high dependence on oil prices, as the initiated diversification of the economic structure has not yet progressed as far as desired. For the Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, Guzel Shaykhullina Your competent contact person.
