The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This paper reviews economic developments in Germany during 1990-95. In early 1995, both western and eastern Germany seemed well poised to continue on their respective growth paths. However, the economy was then confronted by a sharp nominal appreciation of the deutsche mark-translating into a 51/2 percent real effective appreciation between December 1994 and June 1995, most of it during February-which brought with it significant risks to exports and thereby to investment and to the recovery in general.