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Germany After World War Ii Part 1

1638 words - 7 pages

Germany experienced a lot of economic changes after Germany was split into East Germany and West Germany. Initially, West Germany was established as a federal republic but was established as it’s own independent nation in 1955. Many events happened in West Germany from the 1950s to the 1980s before Germany became one nation again. There were events such as “oils price shocks, generous social programs, rising deficits and loss of control.” East Germany’s economy was strong due to the Soviet Union’s reliance on Eastern Germany’s production of machine tools, chemicals and electronics. It became appealing to reunite with West Germany when the value of East Germany’s currency became “worthless” outside of it’s country because Eastern Germany was relying on the Soviet Union’s demand (Marketline).

The two countries reunified in 1990 and the reunification caused a decrease in Germany’s economic strength. This was due largely to Eastern Germany’s reliance on the Soviet Union for economic strength and stability. This remained true from 1991 to 1999 and is reflected in Germany’s average economic growth of 1.8%. Their growth started to increase in 2000 to 3.3%. This was due to the “rise in merchandise exports and foreign direct investment” (Marketline).
A strong year in 2000 was followed by an average of .6% growth rate from 2001-2005. Germany was affected by the world’s economic status, which caused a drop in German exports. Since exports are one of the largest contributors to Germany’s GDP, it caused the their economy to slow. In addition to the world’s economic status, they were also affected by the “appreciating euro and sagging domestic investment” (Marketline).

In 2006 and 2007 the growth rate recovered to 3.9% and 3.4% but then dropped again in 2008 “due to the global economic crisis.” The growth rates grew in 2010 and 2011 but dropped again in 2012 due economic crisis in the European economies. (Marketline).

Due to the current economic conditions in Europe, Germany plans to heavily rely on “private consumption” within their country for growth in the future (Marketline).
•Population is currently estimated by the European Union to be 82 million
o1.7% less than last recorded census
o10% drop from 1990
oProjected to drop 19% by 2060
•Germany has the largest population per capita in the European Union
•15th largest Population in the World
•The majority of the population lives in the western part of Germany due to the quality of job opportunities versus the eastern part of Germany
•One of the lowest birth rates in the World
•Ethnicities in Germany
o92% Native Germans
o2.4% Turks
oThe rest of the population consists of Greeks, Poles, Russians, Spaniards, Cerbo-Croatians and Italians
•Germany’s income distribution is currently the most equally distributed than the United States and any other country in the European Union
•Most countries in the World have experienced a drastic increase in the distribution of income since the financial and economic...

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