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

The Economy

A. Economic appraisal (C)

Despite a population level that has been stable at about 17 million since 1960 and a labor force that has actually declined slightly, the gross national product of the German Democratic Republic (GDR) has risen at a respectable 1% per year rate since the economic slowdown of the early 1960's (Figure 1). In 1972, the country's GNP was estimated at about $451 million (1971 prices) or $2,650 per capita. On a per capita basis, East German GNP has risen t about the same rate as that of West Germany, and has remained at a level slightly less than three-fourths of that of West Germany. The East German personal consumption level is relatively even lower, however than that of West Germany, since investment takes a larger share

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