Contents

Summary

Introduction

History

Economic Terms

Economic Analysis of Germany

Comparison of Germany to Other EU States.

Future Recommendations to The German Economy.

Leaders Of German Economy-

Conclusion

GDP composition by end use

Summary

Germany is a country located in the continent of Europe and is a member of Schengen state. Its economy is the 5^th largest economy in the world(CIA world  Factbook). In this article, the economy of Germany during both world wars has been analyzed, after the world wars Germany was divided into two nations namely FGR in west and GDR in east among the allies(CIA world factbook), how the hyperinflation occurred in Germany (Germany in 1920s). The economy of Germany is discussed with the key terms of economics like GDP, inflation, exports and imports, the labour force in Germany. The leaders involved in the economy of Germany and future suggestions have been discussed. Finally in the conclusion it can be taken into account that no doubt Germany is doing great and is performing well as depicted in its GDP, also the  incoming population of migrants may help in rise of economy of Germany initially but in future more immigrants can be a threat to German economy. The use of more renewable resources and non dependence on nuclear plants may also help Germany economically as well as in environment.

Introduction

Germany was involved in the two devastating wars of all time that is WW1 and WW2. War is always bad for the economy and its shown further in our collected data from various resources. Apart from the world wars, Germany was divided into two parts by the allies who fought against Germany altogether for victory. The fate of Germany was decided in this way that half of Germany was taken by USSR and the socialist economy was placed in that part whereas West Germany was under the control of allied powers like USA, U.K France and was under a capitalist economy. After the wall fell in 1989 and Germany was reunified, its economy suffered a big crisis at once only to be recovered in a few years. Now it is the 5^th largest economy in the world and is leading exporter of vehicles, machinery, household equipment etc. (CIA Factbook)

 History

Germany was involved in 2 world wars, after the WW1 Germany was suffering from economic crisis. Castillo(2003) mentioned that there was hyperinflation in Germany, social spending of government increased from 20.5 marks per resident in 1913 to 65 marks in 1929, In 1919 Germany signed the treaty of Versailles with the allied countries who forced it to sign to pay the reparations (6.6 billion GDP) and Germany had to lose its land of about 12 %(Germany in 1920s).He further mentioned the French occupation of Ruhr (due to failed payments) led to economic crisis. After that Adolf Hitler came to power and in 1939 WW2 started when Germany invaded Poland and finally in 1941 it invaded the USSR where the real war started. In 1945 Germany was defeated and once again its economy suffered a huge loss. In 1948 economic wonder occurred followed by Marshall plan in 1949(Britannica). In 1961 Germany was divided into east and west part with a long stretch of border. East was under Soviet control, so it was having socialist economy and west was having a capitalist economy. As cited in the article named, Modern Economic History of East and West Berlin, West was doing great due to its economy and help from allied countries whereas east economy was suffered due to its socialist agenda although it had the best labor force population. East Germany workers had job security, the unemployment rate was less, but ha