der Nachbarstaat
neighboring state
A state or country that shares a geographical border with another state or country.
Die Schweiz ist ein Nachbarstaat von Deutschland.
Switzerland is a neighboring state of Germany.

neighboring state
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neighboring state
A state or country that shares a geographical border with another state or country.
Die Schweiz ist ein Nachbarstaat von Deutschland.
Switzerland is a neighboring state of Germany.

The word is easy to understand if you recognize its parts: 'Nachbar' (neighbor) and 'Staat' (state). So it literally means a state that is a neighbor.
Polen ist ein wichtiger Nachbarstaat für die deutsche Wirtschaft.
Poland is an important neighboring state for the German economy.
To say whose neighbor a state is, use the preposition 'von' followed by the dative. The structure is: X ist ein Nachbarstaat von Y (X is a neighboring state of Y).
Österreich ist ein Nachbarstaat von Italien.
Austria is a neighboring state of Italy.
The word is often used in political and economic contexts. Typical combinations are 'Beziehungen zum Nachbarstaat' (relations with the neighboring state), 'Handel mit den Nachbarstaaten' (trade with neighboring states), or 'Konflikt mit einem Nachbarstaat' (conflict with a neighboring state).
Die Regierung möchte die guten Beziehungen zu den Nachbarstaaten weiter verbessern.
The government wants to further improve the good relations with the neighboring states.
neighbor
'der Nachbar' and 'der Nachbarstaat' can both mean an adjacent country or region. 'Nachbar' is more general and can also mean a person next door. With countries, it is often a shortened, figurative form. 'Nachbarstaat' is more precise and sounds somewhat more formal or political. It means a state or country that shares a border. Learners may confuse the words because both can be used for countries. In conversations, 'Nachbar' is possible if the context is clear. In news, politics, or geography, 'Nachbarstaat' fits better.

Der Nachbarstaat öffnet im Sommer eine neue Bahnverbindung.
The neighboring state is opening a new rail connection in the summer.
Österreich ist ein südlicher Nachbar von Deutschland.
Austria is a southern neighbor of Germany.