Economy of New Ingrea
| Economy of New Ingrea | |
|---|---|
| Currency | New Ingrean pound |
| Fiscal year | 1 July - 30 June |
| Trade organisations |
Ingerish Commonwealth Moonshine Economic Area |
| Statistics | |
| Population | 3,473,671 |
| GDP |
£5,977 million (US$119,549 million) |
| GDP per capita |
£1,761/14/- (US$35,234) |
| GDP by sector |
Agriculture and industry (38%) Services (62%) |
| Inflation (CPI) | 1.75% |
| Population below poverty line | 38,400 (1.13%) |
| Unemployment | 4.45% |
| Average gross salary |
£2,955 US$59,100 |
| Public finances | |
| Public debt | 16.3% of GDP (2016 est.) |
The economy of New Ingrea is that of a prosperous and modern capitalist economy.
History
At the end of the Second World War, New Ingrea 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 Ingrea'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.
Monetary policy
Currency
The national currency of New Ingrea is the pound, which was introduced by way of the passage of the Currency and Coinage Act[1] in 1914 to replace the pound sterling. Management of the pound rests with the Reserve Bank of New Ingrea, 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.
Taxation
The tax system of New Ingrea is typical for a modern economy. New Ingreans 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 Ingrea 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 Church of New Ingrea.
Major companies
New Ingrea's commercial sector is typical for a modern free-market economy. A number of private local and overseas corporations operate in New Ingrea. The largest domestic company is Red Lion Brewing, which makes the famous Lion Draught beer and the Falcon Vale Wines label. New Ingrea's major retailers include the hardware chain Burgess & Green, the retail chains Drurys Limited and Freeman Ashbury, and department store Richardsons. Overseas companies also operate in New Ingrea, either as themselves or through locally owned assets. A notable example is the Ingerish-owned BNI Bank.
References and notes
- ↑ Currency and Coinage Act (Public Act No. 9 of 1913).