Mordusia

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Finance Today {Allister Media}

Commonwealth Bank publishes economic report 5550-5560

Growth and recovery after heavy recession and stagnation

September 5560

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Port Alexander - Every ten years the Commonwealth Bank, our national bank, makes a report on the economic situation in our Commonwealth based on the previous nine years, what has been happening in the current year, statistics from various banks and bureau's as well as statistics released by the Commonwealth Government. This year the Commonwealth Economic Report, as it’s called has the subtitle of ''Growth & Recovery''. The report details our GDP over the last ten years, the growth or decline of the GDP, the state of the government debt and our GDP in LFR and LPD. With these statistics the Commonwealth Bank gives an analyses on how to read these statistics and what they mean for our nation. Today we report on this report and summarise the statistics into digestible bites so you, the reader, can easily follow along.

Presentation of the Report
The report was presented by the President of the Commonwealth Bank, Pierce Hardman. Mr. Hardman, stated that in the view of the Commonwealth Bank, the Mordusian economy has been recovering for some time, albeit sometimes slowly, from the long lasting stagnation and the brief but hurtfull recession the country faced in the 5540's up to 5550's. According to the President of the Commonwealth Bank the nation should keep focussing on creating a stable economic climate that attracts investors and gives room for small businesses to flourish. To that end he comments that the report shows that the previous government had set in motion a few steps to increase business confidence and make it more lucrative for businesses to set up shop in Mordusia. Mr. Hardman went on further to say that ''the government must also help Mordusian, by investing in infrastructure as it is doing now, aid in education and sign more deals. But above all, we must avoid drastic policy changes or flip-flops. Those things hurt our economy more. But lets remain optimistic''. The Bank President then presented a copy of the report to the Minister of Finance, Richard Ashford, who gladly received the report.

Upon recieving the report the Minister of Finance took the stand and began talking about the report and the achievements of the previous government as well as the focus of the current one: ''The government has for years now been setting up with various companies a comprehensive scheme to invest in our nations future through infrastructure investments. This government will continue doing so whilst also looking into reforming the state in such a manner that the local governments are empowered to be able to do more, putting money and power back into our local communities. A plan which our friends from the Reform Party will work out. We will also work on ways that stimulate small businesses, farmers and family companies. They are the beating heart of the Mordusian economy. This report shows our approach works, but that there is much work ahead of us''.

What the report says
Its fancy to read the words of the Bank President and the Minister, however statistics do matter and thus we will focus now on what the report actually says and what this means for our economy. Overall we can see that the economy of Mordusia went through a rough patch in the 5540's to 5550's. With in 5550 being the last year of the major recession. The economy shrank with about 0,65% to 3 trillion Mordusian Dollars (615 billion LFR / 628 billion LPD). Compared to the major 15 economies at the time Mordusia would rank as a small developing nation. A rather shocking and hard blow, especially since the Mordusian Commonwealth used to be a well developed state. This report shortly states that the reason behind the economic collapse was the neglect of the government, huge borrowing of money and the isolationist policies which kept Mordusia from attracting foreign investments, businesses and trade.

When we look onwards from the 5550's up until now (5560), we can see a stark improvement in the economy. With the deal with Lodamun and Luthori, as well as Mordusia re-engaging with the Commonwealth of Luthorian Nations, growth returned to our economy. This has much to do with attracting businesses and investments from these nations and a decreasing burden on the state finances by cut backs to pay for tax reductions. This has stabilised the economy well enough to see businesses being started, Luthorian companies penetrating the Mordusian market and Vanukuan-leased mines being re-opened and improved. Humperdinck Media and Allister Media re-opening newspapers, TV-channels and the movie scene is an example of the new economy activity. This activity has seen our economy recover and grow beyond the GDP we had in 5550 and before to 3,42 trillion Mordusian Dollars ( 638 billion LFR / 697 billion LPD).



Overall the economy seems to also benefit from smart government investments. The international coverage and business exitment from the major investments in the Trans-Seleyan Railnetwork seems to have also worked greatly in favour of economy growth. With new connections being planned new businesses have stated that they wish to expand in the areas the new railnetwork connects. These businesses such as diners, thee shops and stores are all investing in places and setting up shop, creating a new exitement in the economy. However this development also comes with a clear challange ahead which the nation needs to urgently address, which is the looming energy crisis. The report clearly states that the Mordusian economy doesnt produce enough energy due to a lack of natural resources which produce said energy: coal, oil and natural gas. These resources have to be imported from another place. Currently the Mordusian economy imports it directly from Luthori, however it does not satisfy the ever growing demand that comes with economic growth. Luckily the government acted on this and is holding talks with Gaduridos for oil imports, this however needs to be done quickly.

The National Debt
Though we do not have to worry about a debt crisis, the Commonwealth Bank does warn that the government should keep investing, but do it smartly and carefully. The debt has been reducing in comparison to the GDP which allows for more room to invest. However if the government swiches to overzealous spending the country could face a financial crisis, especially if a down turn happens again. However for now the economy seems to be doing fine, with a growth of 1,4% and growing the economy is going up. The debt was about 71% of GDP in 5550, which is above the maximum advised by the Commonwealth Bank of 60% of GDP. Through budget surplusses this decreased to 64% and then increased again with the massive investment in the Trans-Seleyan Railway up to 70%. Currently the debt-to-GDP is at 68% and going down, slowly. The Minister of Finance has stated that the hight of the debt is indeed a concern but should not stand in the way of sound investments.

 

Looking towards the future
According to the report the current and future governments should keep focusing on strengthening the economy, diversifying it and making it more resilliant. The openess towards other countries and increasing trade relations as well as investing in education remains the biggest tips the Commonwealth Bank gives unto the government. It remains however to be seen if the government picks up on these tips given to them. For now we can see that the economy is doing better and that the government is actively seeking partners abroad. Stability however in the new multi-party system seems to be an issue, will we over come it? Time will tell.