Although it was not a united country until 1871, industrialization across Germany began in the early 1800s, and it quickly saw Germany emerge as a Great Power in Europe. German industrialization was largely driven by coal and steel production, of which Germany had rich deposits, and these were used in construction and infrastructure to modernize the country. The mechanization of agriculture also fed into this, as many people from rural regions flocked to cities in search of work. Many of the coal and iron deposits were located in Germany's west, particularly around the Rhine and Ruhr regions, and industry here benefitted from strong rail and water transport networks. Today, with over five million inhabitants, the Ruhr region is the most populous metropolitan area in the country, largely due to these developments. While Germany was among the most advanced nations in the world by the end of the 19th century, industrial output grew higher still in the 20th; between 1896 and 1913, industrial output in Germany doubled.
Interwar turmoil
After the First World War, Germany lost its resource rich territories of Alsace-Lorraine and the Saarland, while the Rhine and Ruhr regions were also occupied by France, and much of its industrial output was sent to other countries as war reparations. Hyperinflation in 1923 also saw the collapse of the German economy, and it was not until the late-1920s that economic recovery from the war truly began, although this was also short-lived. As Germany had been dependent on financial aid from the U.S. in order to recover and meet its reparation payments, the Great Depression in the U.S. had dire consequences for the German economy. From 1929 until 1932, industrial output fell once more, and many historians point to this economic difficulty as a catalyst for the rise of nationalism and fascism in Germany. The Nazi Party then ascended to power in 1933, the year the Depression ended, and the economy was restructured to support a war of expansion. Among other factors, this involved tax breaks for large businesses, allowing cartels to control local business, increasing average working hours, and prioritizing industrial employment by importing food from the east. The strength of Germany's industry then allowed the Axis powers to take control of most of Europe during the Second World War, but it was ultimately defeated by 1945.
Post-war split
Following the war, Germany was split into two separate states; commonly referred to as East and West Germany. The west was a liberal democracy with a free-market economy, while the east was a communist state with a command economy, yet both became leaders in their respective trading blocks during the Cold War. When looking at industrial growth over the next three decades, using output in 1963 as a benchmark, East Germany's output grew over nine times larger from 1949 to 1975, whereas West Germany's grew by a factor of six. It is important to remember, however, that the west was larger, more populous, and starting from a more industrially developed point than the east, therefore it was consistently more advanced. The West also had fewer restrictions placed on it from other nations after the war, and it played a leading role in European integration; whereas the East was influenced more heavily by the USSR and it had less trade with other advanced nations, which hindered its technological development. West Germany's output took a hit in the 1970s due to the 1973-1975 Recession, whereas the East's economy was protected as it had little trade with the U.S. and its partners. However, the West quickly recovered and economic stagnation in the East throughout the 1980s would contribute to the eventual collapse of the Eastern Bloc, and Germany was officially reunified in 1990.
FAQs
An immediate consequence of expanding industrial employment was a sharp drop in emigration; from an average of 130,000 people per year in the 1880s, the outflow dropped to 20,000 per year in the mid-1890s.
Why was Germany able to industrialize so quickly? ›
The central growth engine for industrialization in Germany was railroad construction. The demand generated by the railroad boosted developments in the three closely interrelated key industries: mining, metal production and mechanical engineering.
Why is Germany no longer a superpower? ›
Alongside global volatility, political paralysis in Berlin is intensifying long-standing domestic issues such as creaking infrastructure, an aging workforce and the snarl of red tape. The education system, once a strength, is emblematic of a long-term lack of investment in public services.
What factors made Germany a key industrialized state by the late 1800's? ›
German industrialization was largely driven by coal and steel production, of which Germany had rich deposits, and these were used in construction and infrastructure to modernize the country. The mechanization of agriculture also fed into this, as many people from rural regions flocked to cities in search of work.
What were 3 major impacts of industrialization? ›
Economic changes resulted in a wider distribution of wealth, the decline of land as a source of wealth in the face of rising industrial production, and increased international trade. Sweeping social changes occurred, including the growth of cities and the development of working-class movements.
How did Germany accelerate their industrialization and what were the results? ›
Industrialization progressed and the bourgeoisie gained ever more influence. Widespread railway construction also boosted the economy, making mass production and the efficient distribution of goods possible. In addition to this, the demand for coal and steel grew.
What led Germany to industrialize fairly late? ›
Germany Germany began industrializing fairly late, in part because it consisted of a number of independent states for most of the 1800s. In 1834, however, many of those states joined in creating a free-trade zone. Germany soon established itself as a leader in heavy industry, especially metalwork.
What two factors slowed industrialization in Germany? ›
Economic isolation and scattered resources hampered countrywide industrialization. Instead, pockets of industrialization appeared, as in the coal-rich Ruhr Valley of west central Germany. Beginning around 1835, Germany began to copy the British model.
How did Germany develop so fast? ›
What caused the so-called miracle? The two main factors were currency reform and the elimination of price controls, both of which happened over a period of weeks in 1948. A further factor was the reduction of marginal tax rates later in 1948 and in 1949.
Is German manufacturing in trouble? ›
German industry declines
The country is on the brink of a technical recession after its economy contracted 0.3% in 2023. The outlook for this year is bleak, with the German government slashing its GDP growth forecast from 1.3% to 0.2% in 2024.
Stalin wanted Germany to stay weak. He was concerned that they might attack the USSR again in the future. He wanted them to pay compensation to the USSR for damage during the war.
When did Germany become the most powerful country? ›
Germany joined the other powers in colonial expansion in Africa and the Pacific. By 1900, Germany was the dominant power on the European continent and its rapidly expanding industry had surpassed Britain's while provoking it in a naval arms race.
How did Germany get so rich? ›
The rapid advance to industrial maturity led to a drastic shift in Germany's economic situation – from a rural economy into a major exporter of finished goods. The ratio of the finished product to total exports jumped from 38% in 1872 to 63% in 1912. By 1913 Germany had come to dominate all the European markets.
What are three factors that helped German industry grow? ›
Germany had the same three factors as were available in Britain: (1) natural resources (coal and steel); (2) cheap bulk transportation by water; (3) a supportive legal environment (free from feudal constraints.)
When did Germany fully industrialize? ›
In 1870 the modern German nation was created and thereafter major industries were founded that led to the full fledged industrialization of Germany.
What were the results of industrialization? ›
The effects of industrialization included a significant population growth, the urbanization or expansion of the cities, improved access to food, a growing demand for raw materials and the development of new social classes formed by capitalists, a working class, and eventually a middle class.
What was the result of industrialization in Europe? ›
New sources of energy and power, especially coal and steam, replaced wind and water to create labor-saving machines that dramatically decreased the use of human and animal labor and, at the same time, increased the level of productivity.
What were the effects of industrialization on the war? ›
New technology made it possible to mass-produce weapons with enhanced accuracy, power, and range. Many of the new weapons and corresponding tactics went against the fundamental conceptions of what constituted proper conduct of war, making change difficult and unsettling.
How did industrialization impact ww2? ›
Between 1940 and 1945, industrial mobilization for WWII in the United States created an “arsenal of democracy:” 1 over 300,000 aircraft and bombers, 20,000 ships, nearly 90,000 tanks and 350,000 trucks, as well as 9 million rifles and machine guns, and 40 billion bullets, to equip 16 million servicemen (Klein 2013, pp.
