GERMANY MARSHALL PLAN

Federal Republic of Germany (West Germany): Chapter 4A. Character and Structure of the Economy

Chapter 4A. Character and Structure of the Economy

The Federal Republic of Germany (West Germany or Federal Republic)

possesses a highly industrialized and productive economy and in the early

1980s was usually ranked fourth among the industrial nations of the world.

In 1980 the total output of goods and services amounted to the equivalent of

US $826 billion, a per capita gross national product of US $13,410-some 16

percent above that of the United States. The population was cared for by

extensive and expensive social programs that had been in existence for about

a century. Economic growth depended almost completely on private initiative,

and management of the economy was largely by free market forces. Foreign

trade played a key role. Few natural resources and limited agricultural land

required large imports of food, raw materials, and manufactured goods. West

Germany was the world's largest importer of agricultural products. A

relatively small domestic market and the need to pay for imports required

a high level of exports, most of which were manufactured goods of high

quality and advanced technology. West German industry competed successfully

in world markets, and the deutsche mark remained one of the world's strongest

In the 1950s and 1960s the economy expanded rapidly, as

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Category: Economics - G