An Analysis of German Economic Prosperity at the Beginning of the 21st Century

Abstract

Since the 1970s, Germany has been experiencing a slowdown in economic development. After that and a severe structural imbalance in the economy, all of which indicated that the German economy was in serious trouble. However, the beginning of the 21st century has seen a significant change in Germany's economy, with the number of unemployed people at record lows and economic growth during the financial crisis. How did Germany manage to do this? This article focuses on the measures taken by Germany to the unification of the two German states at the end of the 1990s. The economy was affected to the point of near stagnation. By 1998, there were more than 4 million unemployed people and an unemployment rate of 10%, accompanied by high labor costs, a nearly destroyed industrial base, achieved economic prosperity, analyze the reasons behind its success at both the domestic and international levels, take into account the similarities with the post-reform and opening-up economy in China, and conclude the paper with a summary and reflections, as well as discussing the lessons that can be learned for China's economy.