What was the economy of East Germany?

The East German economy was dominated by consumer-goods manufacturers, and depended on raw materials and intermediate goods found exclusively in the West. East Germany had virtually no hard coal deposits, and only half of the fuel demand could be met domestically.

Who did East Germany blame for poor economy?

the Soviets
Initially, Khrushchev refused to allow the East Germans to close the border in Berlin because he felt it would exacerbate the tensions of the cold war and make communism look bad. Ulbricht blamed the Soviets for the refugee problem and East Germany’s economic problems.

Why did the economies of the former East Germany?

Why did the economies of the former East German areas collapse during reunification? East German businesses were unable to compete in the free-market economy.

Did eastern Germany experience an economic miracle?

The German Federal Republic had experienced a period of tremendous growth in the nineteen-fifties and early nineteen-sixties, known to German economists as the Wirtschaftswunder, or “economic miracle.” The boom was the result of several auspicious events.

Why were East Germans in a worse financial position than West Germans?

Terms in this set (8) Why were East Germans in a worse financial position than West Germans? The East German communist command economy limited economic prosperity.

Did East Germany have inflation?

Inflation slowed considerably in East Germany in August, two months after the country adopted a market economy, Government statistics said today. The cost of living showed an increase of four-tenths of 1 percent in August from July, after rising 7.5 percent from June to July, the figures showed.

Was East Germany a success?

Although the GDR had to pay substantial war reparations to the Soviets, it became the most successful economy in the Eastern Bloc. Emigration to the West was a significant problem as many of the emigrants were well-educated young people and weakened the state economically.

What type of economy did East Germany have?

East Germany had a command economy, in which virtually all decisions were made by the governing communist party, the Socialist Unity Party (SED). The system of planning was inflexible and eventually caused ruinous economic conditions.

What happened to the economy of East Germany after 1990?

On 1 July 1990 the country entered a monetary and economic union with West Germany, followed by the political dissolution of East Germany on 3 October 1990. The immediate aftermath of unification saw a period of economic collapse as industrial production plummeted and a rapid increase in the unemployment rate.

What is East Germany?

East Germany was, in many respects, the first child of the Cold War. When Germany was invaded by the Allies and the Soviet Union at the end of World War II, they agreed to occupy different zones.

What were the economic policies of East Germany in the 1950s?

In the mid-1950s, the East German government relaxed its economic policies. Its Stalinist Five Year Plan was replaced with a more moderate seven-year version, while greater emphasis was placed on producing consumer goods. These reforms were fairly superficial, however, and the East German economy showed only marginal signs of growth.