War and Military History
Cold War

What was the German economy like during the Cold War?

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November 12, 2007 4:29PM

With the devastation of Germany by the non-stop bombing raids by the Allies and the seizure of most of the industrial equipment from East Germany by the Soviet Union left the remains of Reich without much hope of recovery. By 1947 the Marshall Plan investments and the corresponding Soviet program lead to the rebuilding of many factories and by 1950, the term Wirtschaftswunder or economic miracle emerged with West Germany returning to the pinnacle of industrial might. Companies like Daimler-Benz, Porsche and the other companies devestated by the bombing managed to recover and update all their mahines. The replacement of Germany's currency by changing the reichsmark to the Deutsch mark also helped. Eat Germany lagged behind and took longer to recover but by the end of the Cold War had one of the largest economies in the Eastern Bloc.