Economy 1955-66

• From 1955 to 1966, the German economy continued to prosper, achieving an average economic growth rate of 8% over the period. By the mid 1950s, the FRG became the third largest trading power in the world. The FRG's share of world trade grew from 6.6% in 1965 to 7.9% ten years later.
• The FRG's trading success was based on the competitive price of its goods and their reputation for quality. This was very noticeable in the car industry, both in terms of quality, top-of-the-range models such as BMW and Porsche and in the everyday market where Volkswagen became a global brand.
• In 1955, unemployment stood at 1 million, or 4.2% of the workforce. By the 1960s, full employment had been achieved. This included the 2 million East Germans who had fled from the GDR and the beginnings of the guest worker schemes. By the 1960s, there was even a labour shortage and the guest worker schemes were extended.
• Because of the social market economy, by the 1950s, the federal government either owned or controlled 40% of the coal and iron production, 75% of aluminium manufacture and 66% of electricity generating plants.