Why did Germany have economic problems after ww1? Germany was economically devastated after a draining defeat in World War I. Due to the Versailles treaty, Germany was forced to pay incredibly sizeable reparations to France and Great Britain. At first Germany tried to recover from the war by way of social spending.What economic problems did Germany face after World War 1?
What economic problems did Germany face after ww1? H yperinflation and the Fallout As war debts and reparations drained its coffers, the German government was unable to pay its debts. Some of the former World War I Allies didn’t buy Germany’s claim that it couldn’t afford to pay.How much money did Germany owe after WW1?
The Treaty of Versailles (signed in 1919) and the 1921 London Schedule of Payments required Germany to pay 132 billion gold marks (US$33 billion) in reparations to cover civilian damage caused during the war. Additionally, how much did Germany have to pay in reparations in pounds?