Germany initiated significant measures to revive its dwindling economy after the World War II ended and has accomplished major economic reconstruction since then. The amazing economic growth has propelled Germany into the third position among the leading economies of the world just behind United States and Japan. The measured selection of economic and monetary policies by the government of Germany brought about the important turnaround in its economy. Applying the Marshall Plan aid judiciously, establishing cordial relationships with its social associates and implementing policies for reconstruction helped immensely in rebuilding the economy after the setback it experienced during the World War II. The government allowed the market forces to determine the course of the economy, while it aimed at bettering the standards of poor, and correcting the short comings of the market.
It had a vibrant economy that experienced major slowdown and negative growth when two parts of Germany, East and West, were united to form a single country in 1990. The meltdown of the economy mainly happened because of huge differences in the economic systems of the East and West Germany.
The merger of its two parts into one along with growing number of elder people among its population and increasing rate of unemployment added to its further decline. Both hiring labor and getting work has become more difficult because of its slow economic expansion and uncertain incentives. However, the business restructuring and rising capital markets have provided the needed boost to its economy that will surely assist it to achieve its intended objectives and allow it to face European as well as international economic challenges.
Source: articlesbase
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