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Germanys Economy

cabbage, carrots and cauliflower; while pears, apples, plums and strawberries lead the fruit crops. The country is also a leader in the production of hops, which helps contribute to its notoriety in the beer-industry. Wine grapes grown in the Rhine and Moselle Valleys help develop that notable industry. Germany has a fair balance of trade. Its exports include chemicals, motor vehicles, iron, steel and other raw materials. The value of these and other exports in 1996 where estimated at DM772 billion. Among items imported into the country are electrical products and apparel. With these products, the value of imports to Germany were DM670 billion. The most trade activity occurred with France, valuing their partnership at DM71 billion for exports and DM84 billion for imports. The United States figures stand at DM48 billion and DM60 billion form import/export respectively. The largest difference in commodity distribution is raw materials with DM35 billion of it being imported and DM6 billion being exported. German government, or Bundestag, has continued to work hard to make sure that the economy has continued on the path to stabilization. It had faced tough issues that have arisen because of unification. The Bundestag may make the decisions on what to do about the economic status and how to make corrections, but it is the job of the Central Bank to carry them out. The economic growth of Western Germany had see-sawed considerably. There was a economic boom caused by the increase in consumer demand and capital spending for two years followed by a drop. All this happened as the eastern states needed an increase in support payments to help them get back on their feet. The Central Bank, known as the Bundesbank, needed to prevent any more pressures of inflation placed on them. In doing so, a high, short-term interest rate was instituted – thus curbing any further economic activity. The Bundesbank saw an improvement in conditions and the eas...

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