Business news from Ukraine

Business news from Ukraine

Germany to replace ambassador to Ukraine

Former State Secretary for Financial Affairs and experienced diplomat Heiko Thoms will become Germany’s ambassador to Ukraine, replacing Martin Eger, who will now head the Federal Intelligence Service, Die Welt reported on Tuesday.

“Former State Secretary for Financial Affairs Heiko Thoms will represent Germany as ambassador to Ukraine in the future… The cabinet is expected to approve the appointment on Wednesday,” the publication said on its website.

Until this year’s government change, Thoms was State Secretary in the Federal Ministry of Finance.

He will replace Martin Eger, who will become the new head of the Federal Intelligence Service (BND). Eger also received Foreign Minister Johann Wazewsky during his visit to Ukraine this week.

According to reports, the 57-year-old Toms is an experienced diplomat. From 2020 to 2023, he was Germany’s ambassador to Brazil, and before that, he was deputy head of the German mission to NATO.

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Inflation forecast for Germany for second half of 2025

Economic experts predict a further decline in inflation in Germany in the second half of 2025. The main factors contributing to this are:
Lower energy prices
Stronger euro
Slower wage growth
Lower external demand due to trade tensions
Thus, inflation in Germany in January-May 2025 shows a steady downward trend, approaching the ECB’s target level. This creates the conditions for monetary policy easing and supports expectations of economic stability in the second half of the year.
Impact on monetary policy
The slowdown in inflation in Germany and other eurozone countries is strengthening expectations of interest rate cuts by the ECB. In May 2025, inflation in the eurozone stood at 2.1%, in line with the ECB‘s target.
The ECB is expected to decide at its meeting on June 4–5, 2025, to lower its key interest rate by 0.25 percentage points to 2.0%. This will be the eighth rate cut since June 2024, when it stood at 4.0%.

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Relocation’s analysis of German labor market in early 2025

At the beginning of 2025, the German labor market is showing resilience despite economic challenges, including slowing GDP growth and structural changes in industry. However, problems such as a shortage of skilled workers, demographic changes, and difficulties with integrating migrants remain.

Key indicators at the beginning of 2025

Total employment: According to the Federal Statistical Office of Germany, the number of people in employment in March 2025 was around 45.8 million, 0.1% less than in March 2024.

Unemployment rate: In March 2025, the unemployment rate was 3.7%, up 0.2 percentage points compared to the same month of the previous year.

Average working week: Despite high employment, the average number of hours worked per employee fell to a record low (excluding the pandemic year of 2020), raising concerns about labor productivity.

Professions in demand

In 2025, there will continue to be high demand in Germany for specialists in the following fields:

Medicine: doctors, nurses, pharmacists.

Information technology: software developers, cybersecurity specialists, data analysts.

Construction: engineers, architects, skilled workers.

Education: teachers, especially in primary schools and technical subjects.

Care sector: social workers, caregivers, especially in the context of an aging population.

The shortage of personnel in these sectors is due to both demographic changes and an insufficient influx of qualified specialists.

Migration plays a key role in maintaining Germany’s labor force:

Number of foreign workers: As of 2024, the number of foreign workers in Germany stood at 6.3 million, almost twice as many as ten years ago.

Main migrant groups:

Ukraine: Since the start of the conflict in 2022, Germany has taken in a significant number of Ukrainian refugees, many of whom are integrating into the labor market.

Syria, Turkey, Afghanistan: These migrant groups are actively participating in the economy, especially in sectors with labor shortages.

Integration challenges: Despite integration efforts, migrants face challenges including recognition of qualifications, language barriers, and limited access to educational programs.

Average wage

Average wage: In 2025, the average gross wage in Germany is around €4,200 per month.

Minimum wage: From 2025, the minimum hourly rate has been increased to €12.82.

Sectoral differences:

IT and technology: high wages reflecting a shortage of skilled workers.

Medicine: salaries vary depending on specialization and region.

Construction and care: salaries remain competitive, especially given the shortage of labor.

Forecasts and challenges

Germany faces a number of structural challenges in the labor market:

An aging population: According to forecasts, around 4.8 million baby boomers will retire by 2035, exacerbating the labor shortage.

Reduction in working hours: The average number of hours worked per employee is declining, which could have a negative impact on overall productivity.

Integration of migrants: Additional measures are needed to effectively integrate migrants into the labor market, including recognition of qualifications and language support.

In response to these challenges, the German government is implementing programs to attract skilled workers from abroad, improve working conditions, and promote employment among women and older workers.

Source: http://relocation.com.ua/analysis-of-the-german-labor-market-at-the-beginning-of-2025-by-relocation/

 

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Ukrainian gluten-free cookies Smakuli now available in Rewe supermarkets in Germany

The Ukrainian brand Smakuli (Lviv) — gluten-free cookies and snacks — is now available in German Rewe supermarkets, according to the Amal Berlin portal.

“We initially built our portfolio in Ukraine and have already implemented international quality and safety standards FSSC 22000, as well as AOECS certification, which certifies that allergens are carefully controlled in production. But that wasn’t enough – the process of entering the German market took almost 11 months,” the publication quotes Ruslana Rymarska, founder of the Smakuli brand and head of the Ukrainian Food Manufacturers Alliance (UFMA).

The Ukrainian company gained the opportunity to be represented in the Rewe network as part of the Startup Lounge project, which offers small businesses and startups the opportunity to introduce their products to the network.

According to Rymarska, work is currently underway to enter the Dutch and Swedish markets.

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Germany’s economy in 2025: stagnation, challenges, and hopes for recovery

In 2025, Germany’s economy continues to face serious challenges. After two consecutive years of GDP decline (0.3% in 2023 and 0.2% in 2024), the current year is characterized by stagnation, with GDP growth forecast at 0.0%. This makes Germany the only G7 country that has not shown economic growth in the last three years.

Key economic indicators

  • GDP: In the first quarter of 2025, the German economy grew by 0.2%, avoiding a technical recession.
  • Inflation: In April 2025, the inflation rate was 2.1%, indicating price stabilization.
  • Unemployment: In April, the unemployment rate reached 6.3%, the highest level since December 2015, excluding the pandemic period.
  • Consumer sentiment: The GfK consumer sentiment index improved to -20.6 points in May, indicating cautious optimism among the population.

Key challenges

  • Trade tensions: New tariffs imposed by the administration of US President Donald Trump are putting pressure on Germany’s export-oriented industry, particularly in the automotive and metal sectors.
  • Structural problems: Demographic change, a shortage of skilled workers, and high energy costs continue to hold back economic growth.
  • Political instability: Delays in forming a new government after the February 2025 elections are creating uncertainty about economic policy.

Measures to stimulate the economy

The new government led by Chancellor Friedrich Merz, who is due to take office on May 6, is expected to present a package of measures to stimulate the economy. These include

  • The creation of a €500 billion investment fund for infrastructure and defense.
  • Reform of the tax system to reduce the tax burden on businesses.
  • Simplification of bureaucratic procedures to stimulate entrepreneurial activity.

Forecasts

Economists predict a moderate recovery of the German economy in 2026 with GDP growth of around 1.0%. However, the successful implementation of these forecasts will depend on the new government’s ability to effectively address internal and external challenges.

Source: http://relocation.com.ua/ekonomika-nimechchyny-u-2025-rotsi-stahnatsiia-vyklyky-ta-nadii-na-vidnovlennia/

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Germany topped beer exports to China in first quarter of 2025

Germany topped the list of leading beer exporters to China in the first quarter of this year (by $23.258 million), according to the State Customs Administration (SCA) of the PRC.

It was followed by the Netherlands (by $11.799 million), Belgium (by $11.239 million), and Spain (by $10.028 million). Among Asian countries, Japan supplied the most beer to China – by $5.276 million.

In total, in January-March 2025, China imported beer from 52 countries and exported it to 89.

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