Economy of New Ingerland
|Economy of Guelphia|
|Fiscal year||1 July - 30 June|
|GDP per capita||
|GDP by sector||
Agriculture and industry (38%)|
below poverty line
|Average gross salary||
|Public debt||16.3% of GDP (2016 est.)|
The economy of New Ingerland is that of a prosperous and modern capitalist economy.
At the end of the Second World War, New Ingerland was an exclusively agricultural economy, with small manufacturing industries only capable of servicing the immediate area in which they operated. In the wake of the oil shock of 1973, the economy suffered a prolonged downturn until well into the 1980s. By 1979, the government posted a deficit of £4,800 million. Inflation stood at 9.7% and unemployment sat at a staggering 20.6%.
The migration assistance scheme sought to encourage a revival of New Ingerland's financial fortunes through rapid economic growth. Essential services, such as medicine, teaching, and legal roles were filled first, then many other professionals were lured with better pay, cheap housing and interest free loans. After 1984, the scheme was opened to general labourers, who were sought to build housing and infrastructure for the new migrants. The scheme was successful in pushing the economy into surplus for the first time in 1987.
In recent times, the economy has continued to grow strongly. The domestic market has not suffered a recession since 2009, and has enjoyed twenty-eight quarters of continued growth. Throughout the last forty years, governments of all persuasions have maintained a stern watch on the economy ensuring that excesses seen in the 1980s and the 2000s are not repeated.
The national currency of New Ingerland is the pound, which was introduced by way of the passage of the Currency and Coinage Act in 1914 to replace the pound sterling. Management of the pound rests with the Reserve Bank of New Ingerland, which was established at the same time as the national currency. The bank monitors economic indicators such as the cash rate, wages, inflation and current accounts and uses it's power over interest rates to keep growth within targets set by the bank and the government of the day.
The tax system of New Ingerland is typical for a modern economy. New Ingerlanders are subject to progressive taxation in the form of income tax, and are also levied a consumption tax known as the Goods and Services Tax. Company tax also applies to medium and large businesses. Between them, these taxes fund much of the business of the New Ingerland government. Additional charges and excises may also apply to certain individuals and businesses.
Local government is partly funded through municipal land rates and the Community Charge, a poll tax on all adults (with some exemptions) to fund various services. The Church rate is used to fund the work of the established Anglican Church of New Ingerland.
New Ingerland's commercial sector is typical for a modern free-market economy. A number of private local and overseas corporations operate in New Ingerland. The largest domestic company is Red Lion Brewing, which makes the famous Lion Draught beer and the Falcon Vale Wines label. New Ingerland's major retailers include the hardware chain Burgess & Green, the grocers Drury's and Freeman Ashbury and department stores Gerards and Richardsons. Overseas companies also operate in New Ingerland, either as themselves or through locally owned assets. A notable example is the Australian-owned Chatham Pacific Bank.
References and notes
- Currency and Coinage Act (Public Act No. 9 of 1913).