In the late 1920s, Germany appeared to be recovering from the problems of the early Weimar years. However, this stability was fragile because it depended heavily on loans from the USA.
In 1929, the Wall Street Crash triggered a global economic depression. This had a severe impact on Germany:
- US loans were withdrawn
- German businesses collapsed
- Unemployment rose rapidly
- Banks failed and savings were lost
By 1932, unemployment reached around 6 million people.