Recession of 1709
From 1709 AN-1711 AN, the Federation of Nouvelle Alexandrie, Kingdom of Ransenar, Western Natopia, Eastern Natopia, and other Micran nations suffered a spike increase in inflation as disruptions in the supply chain mounted in the lead-up to the Natopian division. Further economic uncertainty and lengthy negotiations throughout the mid-1700s surrounding the division of the Natopian Empire, growing consumer demand outpacing supply and manufacturing capacity in all nations, and disruptions in Ransenar and in Lyrica due to the Great Vanic Revolt all contributed to trade and industrial activity contracting. This caused a fall in GDP in several successive quarters in Nouvelle Alexandrie, Ransenar, Western Natopia, Eastern Natopia, and Constancia. Shortages of key consumer goods and food further drove prices of daily staples upward, placing additional pressures on individuals and governments in the affected economies. The economies impacted by this recession are characterized as deeply interconnected economies through financial, military, political, and cultural common associations such as the Raspur Pact, the Community of Goldfield, and the Euran Economic Union.
The recession of 1709 AN-1711 AN was a relatively mild recession but was longer than anticipated. The recession lasted for 13 months, beginning in late 1709 AN and ending in early 1711 AN. The recession ended one of the longest periods of economic expansion in the history of Nouvelle Alexandrie, which had begun in late 1694 AN. In many countries like Nouvelle Alexandrie, Ransenar, and Eastern Natopia, the contraction in economic activity also coincided with the active work of their governments in closing large budget deficits and many of their central banks raising interest rates to stop runaway inflation.
During this relatively mild recession, the Gross Domestic Products of Nouvelle Alexandrie fell 1.2%, Ransenar's fell by 1.7%, Constancia's fell by 0.7%, Western Natopia's fell by 0.9%, and Eastern Natopia's fell by 0.5%. Though the recession ended in early 1711 AN, the unemployment rate in many of the affected nations did not peak until much later. The most affected economic sectors in this recession were tourism, retail, transport, housing, manufacturing, and banking.
As additional large infrastructure projects in Nouvelle Alexandrie came online and more clarity was obtained on the settlement of the Natopian division, economic growth resumed in all the affected economies by the start of 1712 AN, with improved unemployment numbers and decisive action in the economies of the affected nations by their governments to address the recession.
Background and causes
Great Vanic Revolt
Division of the Natopian Empire
Impact on countries
Nouvelle Alexandrie
- steep decline in tourism in its "normal" hot spots, in particular in the Southern Aldurian Riviera;
- 1709 AN - bankruptcy of HotelBev Group, loss of 5,000 jobs in the Southern Aldurian Riviera (Region of Alduria) [1];
- 1709 AN - brief strike in the Port of Jirishanca and the Port of Punta Santiago that disrupted most national shipping for two days, resolved by government mediators that arranged for fair agreements in both situations;
- 1710 AN - bankruptcy of the hospitality groups Aldurian Hotels and Inns and the RoseWood Group; further loss of 8,000 jobs in the Southern Aldurian Riviera (Region of Alduria) [2];
- 1710 AN - banking sector reels from major tourism bankruptcies, and companies that held large debt loads have their properties and assets seized by the government to pay creditors. Prized HotelBev possession Hotel du Babkha is seized by the government of Nouvelle Alexandrie
- 1710 AN - bankruptcy rate in the entire country goes up; the impact of pain in the tourism sector spreads to the banking, retail, and services sectors as consumers start to feel the rising prices of food, mortgages, and other services and consumer goods;
- 1710 AN - unemployment spikes to 12% [3];
- 1710 AN - Accession of Anhuaco to Raspur Pact adds additional Keltian trade partner;
- 1711 AN - constitutional reforms, action on housing, the dust settles around Natopian division, Western Natopia and Eastern Natopia divide with no animosity and in cooperation with each other under the Declaration of Lindstrom and their respective laws and regulations.
