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The sickly state of the German economy is the next big challenge for the export-reliant countries of central Europe, which are still recovering from some of the world's worst inflation spikes in the wake of the COVID-19 pandemic. Close trade ties with Germany and its once-mighty auto sector were for years a boon for the region since the collapse of communism. Already, some local companies reliant on ties with Germany are trying to tap deeper into other overseas markets and branch into industries like defence to mitigate the weakness of their large western neighbour, where another year of near-recession looms.

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