Economy of Ransenar
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This article or section is a work in progress. The information below may be incomplete, outdated, or subject to change. |
Ransenar | |||
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| Currency: | Ransenari erb (R€) | ||
| GDP: | R€ 333.7 billion (1679) | ||
| GDP by Sector: |
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| Unemployment Rate: | 5.8% (1679) | ||
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| Industries: |
List industries here. | ||
| Major Industry (% of GDP): | MajorIndustry (TBC %) | ||
| Largest Company (Value): | LARGEST (TBC $) | ||
| Labor Force (% of Total Population): | TBC (TBC %) |
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| Fiscal Year: | Anno Nortone | ||
| Budget: | R€79.265 billion 1679 AN, (XX% of GDP) | ||
| Budget Surplus or Deficit: | ▲ +R€0.54 billion | ||
| Inflation Rate: | 1.197% (1679) | ||
| Public Debt: | R€241.4 billion 1679 AN, (XX% of GDP) | ||
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| Exports: | Exports | ||
| Export Partners: | UGB, Alduria, Shireroth, Elwynn, Natopia, Sanama, Constancia, Wechua Nation. | ||
| Imports: | Imports | ||
| Import Partners: | Shireroth, UGB, Alduria, Natopia, Constancia, Sanama, Craitland, Wechua Nation. | ||
| Reserves of Foreign Currency: | R€4.412 billion (1679) | ||
The economy of the Kingdom of Ransenar is primarily focused on services into high-tech, life sciences, financial services, and agribusiness including agrifood. Ransenar is a largely open economy and ranks high on foreign direct investment (FDI) flows, mainly thanks to its access to the Raspur Pact markets and a close trade relationship with Alduria.
Following a period of continuous growth at an annual level from 1673-1679, the post-1679 Ransenari economic crisis severely affected the economy, compounding domestic economic problems related to the collapse of the Ransenari agribusiness bubble and a steep reduction in Aldurian agribusiness exports.
Foreign-owned multinationals continue to contribute significantly to Ransenar's economy, making up 14 of the top 20 Ransenari firms, employing 23% of the private sector labor-force and paying 67% of corporation tax collected.
Economic contributors and measures
History
Since independence
Goldshirian Tiger (1673-1679)
The "Goldshirian Tiger" is a term referring to the economy of Ransenar from the year 1673 to the year 1679, a period of rapid real economic growth mainly fuelled by foreign direct investment and large government infrastructure programs. The boom was severely dampened by a subsequent agribusiness bubble (fueled by UGB and Aldurian exports) and a property bubble which resulted in a severe economic downturn starting in 1679.
At its founding, Ransenar was poor country by most standards, with high poverty, unemployment, inflation, and relatively low growth. It did inherit sizeable infrastructure works from the massive infrastructure investments during the days of King Ryker. Capital investment programs, large infrastructure projects, defense spending, and foreign direct investment drove a quick expansion at an average rate of 10.6% between 1673 and 1679 when it fell into recession. Its rapid growth has been described as a rare example, with its success attributed to its membership in the Raspur Pact, the export of livestock and grain commodities, as well as through heavy [Raspur Pact|RP]] and Aldurian investment.
Economic crisis (1679-1682)
The economy underwent a dramatic reversal between 1679 and 1682. It was hit hard by low economic confidence brought on by the Second Amokolian War. A chronic economic crisis triggered by a large contraction of foreign direct investment, with GDP contracting by 14% and unemployment levels rising to 16% by mid-1680. Aldurian demand for Ransenari agriproducts contracted steeply, triggering mass layoffs and bankruptcies in the agriculture business. An economic price bubble in which real estate and stock market prices were greatly inflated burst. The bubble was characterized by a rapid acceleration of asset prices and overheated economic activity.
Declining productivity, a high fixed exchange rate between the Ransenari erb and foreign currencies to avoid public turmoil, and a chronic fiscal deficit were also key reasons that led to the crisis. The economic reconstruction of Elsenar following Ransenari reunification stepped up during this period, feeding the fiscal deficit as the recession required large amounts of public funding which turned some areas into temporary boom regions, mainly around the cities of Wendor, Zolt, and Aurum.
A decline in tourism as a result of foot and mouth disease in 1680 further depressed economic growth in Ransenar, triggering further losses in agribusiness. Confirmed by the Minister of Health and Sanitation in mid-1680, on farmland located near Airle. All livestock in the vicinity were culled, followed with a nationwide ban on the movement of all cattle and pigs, with a 3-km (1.9-mi) protection zone placed around the outbreak sites and the nearby virus research and vaccine production establishments, together with a 10-km (6.2-mi) increased surveillance zone. These outbreaks caused a cull of all at-risk animals in the area, including some of the largest farms in Ransenar. These outbreaks also caused the closure of hunting parks across the country to contain deer; remaining closed for three months. Response units from the Ransenari armed forces, the Minister of Health and Sanitation and the National Health Administration quickly enforced the measures, which led to the full eradication of the virus. The quick response by the Ransenari government and successive bills delivering aid to farmers and agribusiness earned public praise from leading agribusiness interests and farmer's interest groups.
Data
Sectors
Alcoholic beverage industry
Engineering
Energy generation
Exports
Financial services
Information and communications technology
Defense manufacturing and contracting
Primary sector
Secondary and tertiary sectors
Taxation and welfare
Taxation in the Kingdom of Ransenar in 1679 AN come from:
- Personal Income taxes (40% of tax revenues);
- Consumption taxes, being VAT (27% of tax revenues);
- Excise and Customs duties (12% of tax revenues);
- Corporation taxes (16% of tax revenues) represents most of the balance (up to 95% of tax revenues).
Ransenar's Corporate Tax System is a central part of Ransenar's economic model. Ransenar emphasizes high corporate tax rates as the most harmful types of taxes where economic growth is the objective. The balance of Ransenar's taxes is covered by Property taxes (<3% of tax revenue, being Stamp duty and local property taxes) and Capital taxes (<3% of tax revenue, being capital gains tax and capital activity tax).
Within Ransenar's taxation system, the most distinctive element is the ratio of net Personal Income taxes on higher earners versus lower earners, which is called progressivity. The top 20% of earners paying 60% of taxes. Economic studies have indicated that the Ransenari average single and average married wage-earners paid some of the lowest effective employment tax rates in the world.
