Vorarlberg as a business location

Record trade surplus despite decline in exports

Products from Vorarlberg were also in demand around the world in 2024 - despite difficult conditions.

(Bild: ÖBB / Lukas Hämmerle)

Despite multiple crises and a generally weakening economy, Vorarlberg's export industry proved to be very robust in the first half of 2024. The bottom line is even a historic trade surplus.

Vorarlberg's economy faced many challenges last year: the energy crisis and inflation, but also the general economic slowdown - especially in Germany, the most important trading partner - as well as the still challenging situation regarding skilled workers had a negative impact on business.

However, a look at the foreign trade balance shows that Ländle companies have held up very well in comparison. Although there were declines in both exports and imports in the first half of 2024, these were still at a very high level: exports shrank by 2.7% to EUR 6.6 billion compared to the first two quarters of 2023, while imports fell by 6.6% to around EUR 4.6 billion.

Closely intertwined with the whole world
All in all, this results in a trade surplus of a good 1.9 billion euros - a new record. "Despite the difficult starting situation and the weak economy of our most important trading partners, Vorarlberg's economy is relatively strong. In a comparison of federal states, Vorarlberg remains at a high level in terms of exports per capita - specifically in second place. In terms of per capita trade surplus, we are now even in first place," says Marco Tittler (VP), State Councillor for Economic Affairs, who believes that the local economy is in a strong position compared to other regions.

One reason for this relative strength is the fact that Vorarlberg's export industry is very broadly based: active trade relations are maintained with around 230 regions and destinations worldwide. Almost 58 percent of exports and two thirds of all imports are accounted for by EU member states. Germany remains Vorarlberg's undisputed most important trading partner, accounting for 27 percent of total exports and 38 percent of imports.

EFTA, with its neighboring countries Switzerland and Liechtenstein, is the second most important partner market, accounting for over 13 percent of all exports and imports. This is followed by the USA as the most important non-European trading partner - with solid growth: in the first half of 2024, goods movements worth EUR 418 million (+7.5%) were recorded for exports and EUR 31 million (+7.4%) for imports.

Trade relations with CIS states collapsed
China is the fourth largest trading partner, although business with the Middle Kingdom has recently lost considerable momentum. Since the Russian invasion of Ukraine, trade relations with the CIS states have collapsed.

In view of the many uncertainties, WKV President Karlheinz Kopf calls for a "smart trade policy" that supports the development of new markets: "This also includes the conclusion of new trade agreements. The EU-Mercosur free trade agreement is a great opportunity for the Austrian export industry." Vorarlberg currently exports goods worth a good 23 million euros to the Mercosur countries.