DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/nhvlg4/germany_unified) has announced the addition of the "Germany: Unified Country, Divided Economy?" report to their offering.

Ever since reunification in October 1990, there have been voices claiming that it was less of a reunification and more of a feindliche Übernahme' (hostile takeover) that would sow the seeds for an economic disharmony lasting decades. This case study examines the existence of an economic divide within Germany, the potential reasons for it and analyzes whether the gap is closing.

Features and benefits

• Examines the continued existence of an economic divide between the former East and West Germany.
• Analyzes the factors contributing to an economic divide between the former GDR and the former FRG.
• Assesses whether the economic divide between East and Germany is being bridged.
• Analyzes the statistical data on macroeconomic indicators such as unemployment, annual salary, house prices, and disposable income.

Highlights

• Almost 25 years since unification, there remains a great deal of debate about how successful reunification has been from an economic standpoint. This report looks at key metrics such as household income, disposable income, gross annual salary, unemployment, and house prices, to determine whether an economic divide persists within Germany.
• This report analyzes the role of government and EU subsidies have played in the reunification of Germany, and the rise of so-called Ostalgie, which has seen former GDR brands re-invent and reposition themselves as desirable brands, allowing them to become major players in the unified Germany.
• This case study looks at how East and West Germany differed in terms of economic system. In the GDR, the state set production targets and prices and the means of production were state-owned. The FRG's free market economy saw decisions regarding investment, production and distribution based on supply and demand and there existed a free price system.

Your key questions answered

• Does an economic divide exist between the former East and West Germany?
• What are the reasons for the economic divide between the former GDR and the former FRG?
• Is the economic gap between the former East and West Germany being bridged?

Key Topics Covered:

OVERVIEW

EAST VS. WEST: A CLEAR ECONOMIC DIVIDE

• 1990: Supposed economic union
• The great currency exchange
• GDR citizens saw their wealth shrink overnight
• 2014: The divide continues to exist
• Income is lower in the former GDR
• Unemployment is much higher in the new states
• House prices are significantly lower in the former GDR

IS THE ECONOMIC GAP BEING BRIDGED?

• Statistical evidence of future economic union
• GDP
• Former GDR vs. former FRG: GDP comparison
• Unemployment has fallen steadily
• Government and EU initiatives to boost growth
• Solidaritätszuschlag (Solidarity Surcharge)
• The new states were EU Objective 1 zones
• Ostalgie and the economic revival of East Germany

ECONOMY OF THE GDR

• The early years: 1949-1960
• SED Third Party Congress
• The First Five Year Plan: 1951-1955
• Der Neue Kurs 1953
• The Second Five-Year Plan 1956-1960
• 1960-1980: Constant reform
• The Seven Year Plan 1959-1965
• Neues Ökonomisches System (New Economic System)
• Ökonomisches System des Sozialismus (Economic System of Socialism)
• Die Hauptaufgabe (Main Task)
• Coffee Crisis exposed inherent economic weakness
• External debt crisis and collapse of the GDR
• External debt crisis
• The collapse of the GDR

ECONOMY OF THE FRG

• The immediate post-war period brought little joy
• 1944-1946 saw output plummet
• Reparations compounded the misery
• Der Wirtschaftswunder (economic miracle)
• Der Wirtschaftswunder in numbers
• The Marshall Plan helped kick start the West German economy
• Currency reform greatly aided economic recovery
• Gastarbeiter provided necessary cheap labor
• Germany's position as a leading exporter
• Membership of European Coal and Steel Community aided exports
• The Korean War necessitated German imports
• Made in (West) Germany as a marker of quality
• FRG as a global economic superpower
• 1990: The world's third largest economy
• Economic comparison with the GDR 1990

CONCLUSION

• Divide exists but the gap is closing

For more information visit http://www.researchandmarkets.com/research/nhvlg4/germany_unified

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