Faethalria: Difference between revisions
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== Economy ==
The economy of Faethalria takes place in the framework of a free market welfare economy whereby free market forces drive the supply and demand of goods and services while the central government protects workers rights, leverages public investments and taxation to provide public services and control key economic sectors. The principal government department responsible for developing and implementing economic policy is the Department of Finance under Minister of Finance, Helga Schmidt.
Faethalria is a member state of the [[United Nations of the Auroran Continent]]. Thus, it enables freedom of movement of goods, services, capital and labour. Furthermore, through structures such as the [[Commission of the UNAC]] and [[Council of the UNAC]], economic coordination with other nations including external tariffs is done at a continental level. As such member states of the UNAC make up by far the biggest source and of and destination for goods, services, workers and foreign direct investment. Furthermore, as a member state of the Kirib Monetary Union, Faethalria's shares the [[Kirib]] with over a dozen other nations and coordinates monetary policy through the [[Auroran Central Bank]] with other member states. Nevertheless, Faethalria maintains economic relations with nations outside of the UNAC, the most significant of whom include [[South Hills]], [[Peregrinia]], [[Free Pax States]], [[Packilvania]], [[Volkia]], the [[Union of Commonwealth Alliances]] and the [[League of Novaris]].
Faethalria has a nominal GDP of 1.205 trillion KRB, making it the fifth largest in the UNAC after [[North Ethalria]]. It has a nominal GDP per capita of approximately 20,535 KRB, making it a lower upper income economy. The unemployment rate stands at 8%. Annual consumer price index (CPI) inflation sits at 1.8%. The country has a sapient development index (SDI) score of 0.8, making it a developed nation. It has fairly evenly distributed income among its people with a Gini coefficient of 0.287. The country has 31 billion KRB of foreign exchange and gold reserves (which are managed by the Bank of Faethalria). The country has total imports of 113.7 billion KRB and exports of 112.6 billion KRB, giving it a relatively healthy budget deficit of 0.9%. It has 780 billion KRB in total debt with much of that burden coming in the form of Kirib-denominated bonds and loans, a substantial portion of which are owned by domestic and UNAC-based institutions.
Although Faethalria benefits from a highly disciplined, educated and hardworking labour force, its limited startup ecosystem as well as favourable economic opportunities in neighbouring nations has caused a noticeable flight of financial and human capital to other nations. Nevertheless, the process of technology transfer facilitated by the UNAC, as well as competitive advantages in industrial goods, certain minerals and agriculture has enabled the country to tap into more developed UNAC markets.
=== Sectors ===
The country is a service sector-dominated industry meaning that tertiary and quaternary sectors comprise the vast majority of its economic output, currently roughly 78%. The biggest industries within this sector include financial services, telecommunications, electricity, retail, entertainment, public services and government institutions, as well as online services. This sector is followed by manufacturing. Due to Faethalria's lower cost of labour, labour intensive manufacturing has arisen even in sectors that have gradually moved to greater automation including chemicals, refined metals, mechanical machines, wine, beer, cars and construction and mining vehicles. While Faethalria acts as a substantial assembly, processing and components manufacturing hub, marketing and research and development largely takes place in neighbouring countries. Policies aimed at making Faethalria a more attractive extremely high value-added destination have been adopted such as establishing collaborative partnerships with [[Axdel|Axdelian]], [[Emberwood Coast|Emberitian]], [[The Oan Isles|Oan]], [[Tuvaltastan|Tuvalt]] and [[Great Morstaybishlia|Morstaybishlian]] universities, and establishment of government-backed venture capital funds.
Agriculture sector produces barley, oats, wheat, cattle dairy, red meat and related products. The mining sector benefits from abundant coal, iron, copper and tin deposits.
=== Infrastructure ===
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