Economy of Guelphia

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Economy of Guelphia
Currency Guelphian pound
Fiscal year 1 July - 30 June
Trade organisations FICT
Statistics
Population 3,314,142
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 Guelphia is that of a prosperous and modern capitalist economy.

History

At the end of the Second World War, Guelphia 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 Guelphia'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 Guelphia 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 Guelphia, 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 Guelphia is typical for a modern economy. Guelphians 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 Guelphian 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 Guelphia.

Major companies

Further information: Major companies of Guelphia

Guelphia's commercial sector is typical for a modern free-market economy. A number of private local and overseas corporations operate in Guelphia. The largest domestic company is Red Lion Brewing, which makes the famous Lion Draught beer and the Falcon Vale Wines label. Guelphia'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 Guelphia, either as themselves or through locally owned assets. A notable example is the Australian-owned Chatham Pacific Bank.

References and notes

  1. Currency and Coinage Act (Public Act No. 9 of 1913).

Other links

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