Mordusia

[Autokrator]

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Finance Today {Allister Media}

Economy takes hit after years of growth

Kalistani embargo hurts Mordusian economy, government takes action

October 5571 (backdated)

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Randworth - For years the economy has seen steady growth, many thanks to government initiatives which create a path for people to create new businesses and for existing businesses to expand. Good diplomatic relations and trade have also boosted consumer and business confidence in the nation. However for the first time since the 5540’s our economy faced a strong economic shock which limited the economic growth, caused by the Kalistani embargo.
 
Due to reasons not understood by our economists nor our government, except for the rotten idea of imperialism, the Kalistani state placed an embargo on Mordusia, Luthori and other Commonwealth nations. This caused a shock on the Luthorian markets, mostly because the trade between the east and west passes Kalistan. Due to the large dependence on the Luthorian markets and trade with Lodamun, our trade also moves through the Ananto strait, which caused a mild panic on the Mordusian markets. Also the Mordusian economy was hit hard by the shocks on the Luthorian market. Causing a big downturn, much to the dismay of the government who has tried so hard to improve the Mordusian economy.
 
In response, the government announced investments in the military, to return to a state where we once more can defend ourselves once more. This stimulus, though the government doesn’t want to call it stimulus spending, has been focused on three targets, on which only one has one direct effect on the Mordusian economy, which is the increase in military salaries, adds to boost recruitment and rebuilding the bases. The government announced the other two plans will be announced by the ministry of Defence on a later date when details have been worked out more.
 
 Another plan launched by the Ministry of Infrastructure is to fasten the railroad construction of the Trans-Seleyan Railnetwork from the east to west coast and to the Canrille world. Though at first the government wanted this to be separate plans, the government thinks the extra work and economic activity will recover the economic growth sooner. To finance this the government has reached out to the Canrille investors and the Canrille Imperial Government to give aid in the construction, partly to cut costs but also because the connection benefits Rildanor, Kanjor and Alduria, the southern neighbours of our nation.
 
Economists have predicted that the stimulus spending will only mildly cover the effects of the economic slap that Mordusia has gained from Kalistan. The most effect it will have is on consumer and business confidence, which took a larger hit than is necessary seeing Mordusian relations in relation to trade with Kalistan are near non-existent. The shock however is deep and needs time to recover.