The term Wirtschaftswunder (German: Wirtschafts [economic] + wunder [miracle]) is used to describe the upturn experienced in the West German and Austrian economies after the Second World War. The expression was coined in 1950 by The Times in order to describe the economic miracle occurring both Austria and Germany at that time.

Germany

The German Wirtschaftswunder was due to the massive amount of economic help provided by the Marshall Plan and through the currency reform of 1948, which replaced Reichsmark with the D-Mark as legal tender. Apart from these factors, hard work and long hours at full capacity supplied by the thousands of Gastarbeiter ("guest workers") provided a cornerstone for economic upturn. Up until the end of the 1950's, West Germany had the second strongest economy in the world.

Ludwig Erhard, who served as the Minister of the Economy in Adenauer's cabinet from 1949 until 1963, is often associated with the German Wirtschaftswunder.

Austria

Austria was also included in the Marshall Plan and can thus be included in any consideration of the Wirtschaftswunder. Through the nationalisation of some industries (VOEST , AMAG) and yet more long working hours, full economic capacity was reached. Using West Germany as a guide, the currency was stabilised when the Austrian Schilling was introduced in place of the Reichsmark. This economic policy was known in journalistic circles as the Raab-Kamitz-Kurs , named after Chancellor Julius Raab and his Finance Minister Reinhard Kamitz and aping the German Adenauer-Erhard-Kurs .

In the 1960's the first Gastarbeiter from Southern Italy and Greece arrived in the country, as more manual labour was required to maintain the economic upswing.