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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110021-0

The growth of retail sales has been rapid, reflecting not only a substantial increase in the volume of personal consumption but also a change in consumption patterns. According to East German statistics, retail sales (in current prices) in 1971 were 48% above the 1960 level, an average annual growth rate of about 3.6%. Both the growth in the volume of trade and the changes in its composition reflect an improvement in the standard of living. Nonfood sales have been growing at a faster rate than food sales (Figure 27). Within the nonfood category, sales of electrical appliances and other luxury items, along with building materials, have grown more rapidly than those of shoes and textiles.

Problems still exist in retail trade, however, in terms of quality and shortages of goods. As the consumers have been able to satisfy most of their quantitative needs for goods and services, they have become

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110021-0