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- Overview: West Germany, a major economic power and a leading exporter,
- has a highly urbanized and skilled population that enjoys excellent
- living standards and comprehensive social welfare benefits. The FRG is
- poor in natural resources, coal being the most important
- mineral. The FRG's comparative advantage lies in the technologically
- advanced production stages. Thus manufacturing and services dominate
- economic activity, and raw materials and semimanufactures constitute
- a large proportion of imports. In 1988 manufacturing accounted for
- 35% of GDP, with other sectors contributing lesser amounts. The major
- economic problem in 1989 is persistent unemployment of over 8%.
- The FRG is well poised to take advantage of the increasing economic
- integration of the European Community. The dramatic opening of the
- boundary with East Germany in late 1989 poses new economic challenges
- that could tax even this powerful economy.
-
- GDP: $945.7 billion, per capita $15,300; real growth rate 4.3% (1989 est.)
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- Inflation rate (consumer prices): 3.0% (1989)
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