Brazil's economy is expected to remain stable in 2025 despite global uncertainties – and after two years of recession – with projected growth of around 2.5%. The agricultural sector remains a key growth driver thanks to record harvests, while the government's industrial policy, "Nova Indústria Brasil", is specifically focused on innovation and digital transformation, sustainability, expanding exports, and higher productivity. Trade conflicts, particularly with the USA, as well as fiscal risks, represent burden factors. At the same time, infrastructure projects, environmental technology, and agrotech offer new opportunities for cooperation. The Free State recently exported and imported goods worth around 200 million EUR to and from Brazil – making the country at Sugarloaf Mountain 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 expansive fiscal and monetary policy measures – including interest rate cuts – consumer growth and consumer confidence remain weaker than hoped, while the real estate market continues to be under pressure. China's industrial policy continues to specifically support key sectors such as automotive, mechanical engineering, and electrical engineering, while at the same time aiming to reduce old production capacities. President Xi Jinping, however, criticized the over-concentration on AI, e-mobility, and computing power and warned 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 EUR. Hao Zhi is your contact in China.
India remains one of the fastest-growing major economies in the world: For the fiscal year 2024 25, GDP growth was around 6.5%, driven in particular by solid government investments, a robust services sector, and increased construction activity. Meanwhile, inflation surprisingly fell to a six-year low of 2.1% in June 2025, giving the Reserve Bank of India provides room for further key interest rate cuts. With its economic programs, the policy continues to focus increasingly on expanding domestic value creation and technologically modernizing the economy. Currently, a trend can be observed that many multinational corporations are significantly expanding their presence in India. Mike Batra accompanies you in your India business.
Israel's economy is being shaped by current developments in the Middle East. Nevertheless, the country recorded a cautious but stable economic upswing in the first half of 2025. Following growth of 1% in 2024, forecasts – for example from the OECD – are based on an increase of around 3.4% for the full year 2025. Inflation stood at around 3.1% in May, slightly declining but still above the target range. At the same time, high investments in the high-tech sector, foreign investment capital, and a booming stock market are supporting the Israeli economy, although high defense spending, a shortage of labor, and structural reform needs in the labor market continue to pose challenges. Last year, the Free State exported goods worth nearly 100 million euros to Israel. Melanie Hoffmann is your contact in Israel.
South Africa's economy is slowly stabilizing after two years of recession: economic growth, however, remains weak – forecasts for this year range from about 1% to a maximum of 1.7% – far from the 5–6% that would be 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% most recently, supporting consumption. The complete abolition of daily power cuts (load shedding) since the end of 2024 has improved production conditions, but these remain constrained by long-term infrastructure bottlenecks. International risks – above all looming US import tariffs as well as diplomatic tensions with the USA – are weighing on export industries such as the automotive sector and agriculture. Over a third of Thuringia's exports to Africa go to South Africa, and more than half of imports from Africa come from South Africa – making South Africa by far the most important trading partner in Africa. Anja Tambusso-Ferraz is your contact person here.
Economic growth in Vietnam could be similarly high in 2025 at 6.5 to 7 percent as in the previous year. Nevertheless, it is likely to fall significantly short of the government's targets, which have set a goal of 8 percent for 2025 and double-digit growth rates from 2026 onward. Especially within the framework of their "China Plus One" strategy, foreign companies continue to build production facilities in Vietnam. In doing so, they benefit from the — regionally comparatively — low wages, good 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 ratio of more than 90 percent, exports play a significant role in the economy. This makes the country vulnerable to global economic crises – particularly with regard to possible US import tariffs. In Vietnam, Thi Thanh Tam Nguyen is happy to assist you.
The Central Asian countries have significantly intensified their cross-border economic activities and initiated joint infrastructure projects. Kazakhstan has the largest economy in Central Asia and can boast solid growth rates: For 2025, economic growth of over 5% is targeted. Risks exist in the high dependence on the oil price, as the initiated diversification of the economic structure has not yet progressed as far as desired. For the Central Asian countries Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, Guzel Shaykhullina Your competent contact person.
