Germany's suffering creates additional risks regarding the recovery of Central and Eastern Europe, warned the analysts a year ago. The warnings are as current. Since then, the situation has not changed and there are no signs of improvement in the future. Germany is the most important trading partner of the region. In this context, should Eastern Europe be reoriented beyond the largest European economy? The impact of the crisis in Germany feels powerful in the Czech Republic. A wave of closing of factories sweeps the country due to the growing costs, global competition and the change of consumers' behavior, and Germany's economic decline exacerbates the situation, notes Expats.cz. The Mitas tire factory operated by the Japanese company Yokohama Rubber Company will suspend its activity until June 2025. About 270 employees will be affected. German producer Dr. Oetker in the food field will also close the Kladno factory, 114 workers to be made available. The American-Irish manufacturer of ADient car chairs will close its factories from Ceska Lipa and Strada Pod Ralskem, eliminating 1,100 jobs in the next two years. Germany's economic problems will lead at the same time to close several car factories near the Czech-German borders. The Schaeffler car component provider could also operate in the Czech Republic. Bosch recently eliminated the elimination of 5,500 jobs. A recent analysis anticipates that the number of insolvency in Germany could increase by up to 40%, causing concern throughout the Czech Republic. The crisis in the German auto industry also hits the car suppliers present in Hungary, according to Intellinews. The Hungarian division of ZF announced plans to eliminate 110 jobs. The reorganization is registered in a larger plan of the German parent company ZF for the availability of 20% of its workforce by 2028. The big car manufacturers of Hungary have escaped the effects of slowing in the sector, despite their addiction raised by German market. However, there is a slow but constant erosion in the suppliers. Zoltan Laszlo, the vice president of the Vasas Union, shows that there is still no panic because of the effects of the German crisis. However, it adds, there is a reduction in the number of temporary workers and a decrease in the number of workers coming from third countries, writes autopro.hu. Although there is no panic at this time, experts agree that employees should prepare for future uncertainties. The German economic recession draws the performance of the Hungarian industry, recently warned the Hungarian Ministry of Economy, according to Magyarhirlap.Hu. The volume of industrial production decreased by 5.3% in December 2024 compared to the same period of the previous year and by 1.8% compared to the previous month. As for the German economy, there is no sign of recovery earlier this year, the German Ministry of Economy recently indicated, Reuters reports. There is no evidence regarding a recovery of the industrial sector, and the fears regarding the safety of the jobs and the persistent geopolitical uncertainty continue to be in the way of recovery of the consumption climate, the report shows.
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