FRG: ECONOMY Flashcards
Why was the economic growth of West Germany labelled an ‘economic miracle’?
Due to the economic growth and recovery from 1952 until the recession of the mid-1960s.
What was the average growth rate of the economy between 1951 and 1965?
8%
What was the highest annual growth rate in West Germany? What year?
1955: 12%
What happened to the gross national product between 1950 and 1955?
Doubled.
What had happened to the gross national product by 1960?
Had risen nearly another 50%.
Why was the balance of trade evidently positive?
Amounts of exports. By 1954, West Germany were the third largest trading power.
What were the unemployment figures in the economic miracle?
Just 4.2% by 1955.
What was the % of income rise between 1949 and 1963?
400%
What was an advantage for West Germany in recovering from WW2?
Possessed large quantities of raw materials, particularly coal and iron.
Why was the long-term damaged caused by the war not feared as much in West Germany?
The West did not suffer the considerable loss of resources taken in reparations that the East did.
How did the arrival of refugees from the East benefit West Germany?
Provided a regular supply of labour, which was often cheap and qualified.
What did Erhard believe the aim of the social market economy lay in?
Rising consumption and economic growth.
What was the issue with social market in the beginning?
The steep rise in prices was not matched by the rate of wages, causing hardship.
How high was unemployment in 1949-50?
13.5%
What advantage did the FRG inherit?
It had access to extensive resources, such as, the Ruhr region and the country’s population was well-educated.
