GDR economy

The GDR (German Democratic Republic), or East Germany, had a centrally planned economy during its existence from 1949 to 1990. The government owned major industries, farms, and resources, and set production goals, prices, and distribution. This system aimed to promote equality and full employment, but often resulted in shortages, inefficiencies, and limited innovation because businesses lacked competition and profit incentives. When Germany reunified in 1990, the GDR's economy transitioned to a market-based system, integrated into West Germany’s more dynamic economy.