6. The Reunification of Germany

The reunification of Germany was officially established on October 3, 1990. By that time, West Germany's economy was still growing. However, their unification with East Germany slowed down West Germany's economy because of their different type of economy. This was also led to things such as their different policies, high taxes and unemployment. The unification did no good with East Germany as they still face economic problems. The problem that they were having was mosty on unemployment. Therer were also many declined resources such as textiles and more. Their agriculture was affected by the economy and became in a bad shape. The East and the West Germany has different GDP per capita, with the East Germany having the lower GDP per capita. They were only able to reach about 71% of West Germany's GDP per capita. Of course to solve this problem East Germany has to catch up with West Germany's economy activity so that they will have similar and maybe even the same level of GDP per capita. Researches have been said that in 2010, East Germany was only able to grow by 1.1% while West Germany will be able to grow by 1.5%. East Germany's economic and political downfall after their unification with the West can be partly judged by how it was not handled properly.