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German Economy Slacken Due to Increasing Radicalism


September, 07 2017
watermark Economic news

After more than two decades of reunification, the former Communist east moved slowly behind the west German states, according to the government. It also showed some warnings regarding social gap and the risk of being radicalized.

The high employment record, improved job security, and increasing wages bolstered the consumer-driven growth of the German economy. This helped Chancellor Angela Merkel to gain the victory for her fourth term in office during the federal election on September 24.

As shown in the annual report of the government, the current status of German unity indicate rising level of life satisfaction in the east for the past decade, however, the division between the economic strength of the east and west is tightening very slowly.

The GDP per head in the eastern states slacken against the west by 27 percent, while jobless rate came in at 8.5 percent in 2016, this surpasses the national average at 5.7 percent as laborers receive lower salary.

The East Germany strongly supports the anti-immigrant Alternative for Germany (AfD) party because of its role during public angst as many refugees dominated the country, transferring jobs and resources from Germans.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.