1. The West of Germany, particularly the Rhine, had large amounts of natural resources and much industrial capacity. This was true long before Germany was split. Take the steel production of Germany in 1944, for example. 59% of Steel production was in the West, 18% was in the East, and 16% was in the areas outside of Germany. This is not only more production, but more production per capita.
2. Like most of the former Easter bloc, the privatization of state companies resulted in economic downturn in that region. Especially since many of these state industries were simply closed and cashed out on. Jörg Steinbach, economy minister of Brandenburg, is quoted as saying "Some 70 per cent of East German industry disappeared".
