Question

give a recommendation for Germany economy  from 1980 to 2010

Answer 1

The economy of Germany is a highly developed social market economy.It has the largest national economy in Europe, the fourth-largest by nominal GDP in the world, and fifth by GDP (PPP). In 2017, the country accounted for 28% of the euro area economy according to the IMF. Germany is a founding member of the European Union and the Eurozone.From 1951 to 1961 West Germany’s gross national product (GNP) rose by 8 percent per year—double the rate for Britain and the United States and nearly double that of France—and exports trebled. Despite some occasional economic downturns (e.g., during the oil crisis of 1973–74), West Germany’s economy followed an upward trend. Indeed, when East and West Germany reunited in 1990, West Germany’s economy was enjoying a cycle of business expansion that had lasted since the early 1980s and continued into 1992.

The unexpected opening of the frontier between East and West Germany and the breaching of the Berlin Wall on November 9, 1989, were a heavy blow to the East German economy, as the relatively small numbers of migrants, who in previous years had left the country by way of Hungary or Czechoslovakia, rose dramatically. The economic unification, achieved by July 1, 1990, swept away all customs barriers and introduced the deutsche mark as the sole currency in Germany.German economy continued to grow rapidly until 1992, after which it began to experience an economic slowdown before growth resumed in the mid-1990s. During the decade following 1992, the German economy grew at an average annual rate of 1.4 percent—among the lowest rates in western Europe.In the late 1980s the economy finally began to grow more rapidly. The growth rate for West German GDP rose to 3.7% in 1988 and 3.6% in 1989, the highest levels of the decade. The unemployment rate also fell to 7.6% in 1989, despite an influx of workers from abroad.Unemployment also rose disproportionately for women. As a result of job losses, migration from east to west continued throughout the 1990s and into the early 21st century.

The number of people employed in agriculture also declined substantially, from about one-fifth of the total workforce in 1950 to less than 3 percent by the end of the 20th century.Throughout the 1990s and the early 2000s Germany’s economic growth was lower than that of the eurozone as a whole, largely due to the cost of the reunification of West and East Germany in 1990.

“The shock of absorbing an economy with 16m people, thousands of outdated smokestack factories and a 50-year legacy of central planning would have brought any economy to its knees.The consequences strained Germany’s jobs market and its budget.By 2004 unemployment rates were higher than for most of its peers, including Italy and France. And with a fiscal deficit of 3.7 per cent of gross domestic product, Germany was breaching the Maastricht treaty limit of 3 per cent — again faring much worse than its main peers.2003, Germany became the largest source of imports in eastern Europe, a market that has grown fourfold since 2000. In 2005, Germany surpassed the US to become the leading source of machinery imports into India: the value of that market has multiplied eight times since 2001. Germany is the largest exporter of vehicles to China, the value of those imports multiplied 18 times over the same period. In the seven years before the financial crisis, real German exports increased 76 per cent, compared with about 20 per cent for its peers.