Germany and the Euro

West Germany- Economy (1950s)

• The West German boom began in 1950.
• The growth rate of industrial production was 25.0% in 1950 and 18.1% in 1951.
• Growth continued at a high rate for most of the 1950s.

• Wages and salaries rose over 80% between 1949 and 1955, catching up with growth. 

• In 1957 West Germany’s new central bank, the Bundesbank was created. 

• The EC helped strengthen Germany's economy through increased trade with other member nations.

• West Germany was a founding member of the European Coal and Steel Community (ECSC), created in 1951 which was a forerunner to the EEC and the EU.

• By 1955, West Germany had made an amazing economic recovery.
• Its prosperity helped the republic gain the support of its citizens.

• The deutsche mark was the second most important currency in the world after the US dollar.