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Germany's economy suffered significantly after World War I due to several factors, including the harsh terms of the Treaty of Versailles, which imposed heavy reparations and territorial losses. This led to hyperinflation in the early 1920s as the government printed money to pay debts, eroding savings and destabilizing the economy. Additionally, the loss of industrial regions and a decline in trade further weakened economic recovery, setting the stage for widespread unemployment and social unrest.

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