Economic problems in the 1980s

Debt

2% (1976-80) to 1.5% (1981-5) (economic growth)

DM40 billion of debt out of a DM250 billion economy. 

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Industrial Output

35% of the FRG industrial output 

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Exports

Economic report called 'Shurer-Papier' Projected a need to increase exports by 500% (completely unrealistic). 

Reselling Soviet oil = 30% of exports to the west 

exports dropped by 30% between 1986-88

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Spending on Health and Welfare

Around 73 DM billon to DM 112 in 1985.

Heavy industry had contaminated cities, Bitterfield for example would have been inhabitable by UN standards. 

(ILL HEALTH DUE TO INDUSTRIALISATION AND AGEING POPULATION = HIGH SPENDING ON WELFARE)

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Consumer Goods

5% of industrial output had to be consumer goods meaning facotires made weird combinations of products like Brown-Coal fired power plants making ironing boards. 

Population couldn't obtain basic essentials meaning bartering prevalent as well as 'duck goods' meaning illegal obtaining of goods from under shop counters (hence: DUCK goods) 

The private sector constituted 2.8% of the national product. Made carparts, fridges and TVs. 

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Economic Relations with East Germany

20% of all trade by the 1980s. 

Brought the freedom of 34,000 'enemies of socialism' = DM 3 billion in payments. 

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