After the humiliating defeat in First World War, Germany was forced to sign treaty of Versailles. By which Germany had to pay 132 billion gold marks, it was later reduced to 50 billion. Germany had to borrow huge sum some from New York bank, and the rest was paid off with goods like coal and lumber. Hence Germany was forced to face large economic drop with high inflation. German troops were reduced to 100,000 and the country was prevented from possessing major military armaments such as tanks, warships and submarines. Millions of Germans were jobless. Flu broke out after world war and resulted loss of lives. These factors contributed indirectly to the rise of the Third Reich.
This also paved way to raise of Nazi government and Hitler. Hitler was appointed as Chancellor of Germany on 30 January 1933. He started strength the army tremendously. In September 1933 Germans voted to withdraw from the League of Nations and started military actions against other nations. Industrial revolution took a new shape to employee the citizens. In 1935 the Nazi government reintroduced compulsory military service act, it also withdrew from the Treaty of Versailles and introduced the Nuremberg Laws which targeted Jews and other groups. Soon Germany started its new face of aggression and took revenge on their dominating nations. This ended only after facing another defeat in Second World War.
Germany paid its debt by forced labour, particularly in the Soviet Union. Citizens and soldiers alike were captured by the Red Army and deported to the USSR. The death rates in some labour camps approached 50 percent and hundreds of thousands died while in captivity. The Germans made the last interest payment on its World War I compensation debt on October 3, 2010. Now Germany has the largest automobile industries. Germany is the world’s largest exporter of goods with $1.016 trillion exported in 2005