During the "Golden Age of Capitalism", between 1950 and 1969, economic growth and output grew across virtually all countries in Europe. Growth in Western Europe was the fastest of any region in the world; Japan was the only individual, major economic power to experience faster growth during this time. In Western Europe, the fastest growth rates were across the southern states*, and in the founding countries of the European Coal and Steel Community (Benelux, France, Italy, and West Germany). Not only was West Germany the largest economy in post-WWII Western Europe, but it also had the highest growth rate of economic output, at an average of 6.2 percent each year.
Causes
Increased European integration removed many trade barriers and incentivized cooperation; for the countries who were reluctant to integrate, most notably the United Kingdom, economic growth was still achieved but at a much lower rate. Generally, there was also a correlation between social spending and economic growth, as countries who invested the most in public services and welfare also saw the largest rises in GDP throughout this period. American influence was also fundamental, particularly in private investment from American companies and the Americanization of business practices and corporate structures.
Manufacturing
In terms of manufacturing, West Germany and the southern countries saw the sharpest increases in annual output. West Germany already had a relatively industrialized economy, but greatly expanded these industries in the post-war period. For those states along the Mediterranean, there was a much stronger emphasis on agriculture than industrialization during the interwar period, which meant that when industrialization began in the late 1940s and 1950s it grew significantly. For example, Italy sought to strengthen its agricultural sector in the 1930s by restricting urbanization and migration abroad; after the war, the reversal of these policies saw manufacturing industries boom and employment reached record highs.
Average annual growth in the economic output of Western European countries during the Golden Age from 1950 to 1970
Profit from the additional features of your individual account
Currently, you are using a shared account. To use individual functions (e.g., mark statistics as favourites, set
statistic alerts) please log in with your personal account.
If you are an admin, please authenticate by logging in again.
Learn more about how Statista can support your business.
Routledge. (December 20, 1993). Average annual growth in the economic output of Western European countries during the Golden Age from 1950 to 1970 [Graph]. In Statista. Retrieved December 10, 2024, from https://www.statista.com/statistics/730758/western-europe-economic-manufacturing-output-growth-golden-age/
Routledge. "Average annual growth in the economic output of Western European countries during the Golden Age from 1950 to 1970." Chart. December 20, 1993. Statista. Accessed December 10, 2024. https://www.statista.com/statistics/730758/western-europe-economic-manufacturing-output-growth-golden-age/
Routledge. (1993). Average annual growth in the economic output of Western European countries during the Golden Age from 1950 to 1970. Statista. Statista Inc.. Accessed: December 10, 2024. https://www.statista.com/statistics/730758/western-europe-economic-manufacturing-output-growth-golden-age/
Routledge. "Average Annual Growth in The Economic Output of Western European Countries during The Golden Age from 1950 to 1970." Statista, Statista Inc., 20 Dec 1993, https://www.statista.com/statistics/730758/western-europe-economic-manufacturing-output-growth-golden-age/
Routledge, Average annual growth in the economic output of Western European countries during the Golden Age from 1950 to 1970 Statista, https://www.statista.com/statistics/730758/western-europe-economic-manufacturing-output-growth-golden-age/ (last visited December 10, 2024)
Average annual growth in the economic output of Western European countries during the Golden Age from 1950 to 1970 [Graph], Routledge, December 20, 1993. [Online]. Available: https://www.statista.com/statistics/730758/western-europe-economic-manufacturing-output-growth-golden-age/