merica Samoa)
US diplomatic representation:
chief of mission:
Ambassador Richard C. HOLBROOKE
embassy:
Deichmanns Avenue 29, 53170 Bonn
mailing address:
Unit 21701, Bonn; APO AE 09080
telephone:
[49] (228) 3391
FAX:
[49] (228) 339-2663
branch office:
Berlin
consulate(s) general:
Frankfurt, Hamburg, Leipzig, Munich, and Stuttgart
Flag:
three equal horizontal bands of black (top), red, and yellow

@Germany, Economy

Overview:
With the collapse of communism in Eastern Europe in 1989, prospects
seemed bright for a fairly rapid incorporation of East Germany into
the highly successful West German economy. The Federal Republic,
however, continues to experience difficulties in integrating and
modernizing eastern Germany, and the tremendous costs of unification
pushed western Germany into its deepest recession since World War II.
The western German economy shrank by 1.9% in 1993 as the Bundesbank
maintained high interest rates to offset the inflationary effects of
large government deficits and high wage settlements. Eastern Germany
grew by 7.1% in 1993 but this was from a shrunken base. Despite
government transfers to the east amounting to nearly $110 billion
annually, a self-sustaining economy in the region is still some years
away. The bright spots are eastern Germany's construction,
transportation, telecommunications, and service sectors, which have
experienced strong growth. Western Germany has an advanced market
economy and is a world leader in exports. It has a highly urbanized
and skilled population that enjoys excellent living standards,
abundant leisure time, and comprehensive social welfare benefits.
Western Germany is relatively poor in natural resources, coal being
the most important mineral. Western Germany's world-class companies
manufacture technologically advanced goods. The region's economy is
mature: services and manufacturing account for the dominant share of
economic activity, and raw materials and semimanufactured goods
constitute a large portion of imports. In recent years, manufacturing
has accounted for about 31% of GDP, with other sectors contributing
lesser amounts. Gross fixed investment in 1993 accounted for about
20.5% of GDP. GDP in the western region is now $19,400 per capita, or
78% of US per capita GDP. Eastern Germany's economy appears to be
changing from one anchored on manufacturing into a more
service-or