Unfortunately, what most people don’t know is that Germany continues to fight an uphill battle in keeping its established ranking among the world’s most important economic powers. A historic look back at Germany shows that after its fall in World War II, it needed a massive rebuilding in order regain its status that it once held. Various events took place that helped it re-climb the pedestal ladder. The year 1948 brought a currency reform that was the turning point for economic reform. There was a continuous economic growth each year for Western Germany, but the strict, conservative ways of East Germany’s communist rule still slowed true growth in the Gross Domestic Product (GDP). To make matters worse, the whole country experienced a significant drop in its GDP, causing a recession from 1976 through to 1985. There wa

s a growth again for the next eight years before a major down ward spiral began in 1992. Germany’s early ‘90s spiral was attributed to the reunification of the country between 1989 and 1990. Once the two countries formed their one republic, the economy took its major tumble. Economists have figured this to be true because West Germany continued to evolve with industrial and technological breakthroughs and standards, while the communist East Germany adhered to traditional, unproductive ways that in some cases dated back to the 1940s and World War II times. So instead of combining to form an economic powerhouse, the GDP tumbled and caused a massive surge to restructure and work began to regain the decades of reform that were no longer noticeable. The Republic formed after reunification consists of 16 states, which is still looked at and measured as East and West Germany. Despite all of these states following the established free-market economy, there is still a noticeable gap between the economies of the two sections. German government assistance of nearly $100 billion annually has helped contribute to an increased growth rate for eastern states. Despite this growth, a look at the added Gross Domestic Product (GDP) of eastern states – $108.3 billion, an increase of 9% from the previous year – shows it falls significantly short of the $1.23 trillion GDP of western states. The Western states recouped with a 2.3% increase that year, recovering from their 1.9% decline the previous year. So combined, this gives the Republic a valued GDP, in 1994, of nearly $1.34 trillion. To note another significant difference – the $5,950 national product per capita for workers in the East severely undercuts the $19, 660 for Western workers

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