The Germany Economy (Miracle Economy Post-War)

The Germany Economy

According to the CIA world Fact books Germany is considered the fifth largest economy in the world in PPP terms and Europe’s largest. Leading the way in exporting machinery, vehicles and having a highly skilled labor force. Germany has always had a history especially through the first and Second World War of building weaponry. Even with all of this it still faces hardship in its economy. Germany has hit a wall when it comes to demographic long term growth. Germany is at a tipping point in its economy. So what is going on in Germany’s economy that it’s doing so bad? Well in the face of the end of a 6 year war Germany was hit with a lot of demographic repairs, railroads, building to fix. Also factories were set up to build machinery, weapons for the war as oppose to food. The effect of the war did not require for factories to go through good maintenance, there was no time. So At the end of the war a lot of the equipment had to go to junk. Despite all of this, Germany saw what can be considered the best financial uprising for about 10 years. The national income went up 20%. This increase was real, it was overtime hard work and saving. Unemployment went from 10% down to 1%, with balance budget and almost no inflation; many call it the economic miracle of the Post-war. The Country saw itself with massive growth in its economy but sadly these things don’t last forever.

Today the government is going through hardship of its own. After the disaster of 2011 in Fukushima nuclear disaster. , According to CIA world Fact Books “Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.” This will hopefully turn the economy around and bring back the miracle economy that once was.