Mordusia

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Mordusian economy recovers slowly 

A temperorary recovery or begining of new boom?
March 5634 (backdated)

  
Randworth - Though the Mordusian economy wasn’t doing bad as in a recession all good hopping Kangaroo’s and dodo’s noticed that the markets had started to slow down. The hopping became less frequent and less high, with even a few years of contraction of the economy and mostly small neglectable growth occurring. Economists now see an optimistic recovery in economic output and growth, mostly thanks to government expenditure.
 
The Coalition government in their latest budget, which passed with a majority of all votes in the chamber except those of the National Party, affirmed once more the national policy of ‘choosing for Mordusia!’ as the Reform-Labour coalition’s budget and government plan is called. The policy set out by the government as explained by the treasury is that a budget deficit is allowed to exist and to borrow on the international bonds market to make use of the low debt position of Mordusia to invest in vital sectors of the economy. These investments have been made into increasing salaries of civil servants, decreasing taxes on arts and literature, investing in education and above all the expansion of the railway systems.
 
These investments have caused a year on year budget deficit, but also lead the country out of the decline according to the government. These claims seem supported by the increased growth numbers in the economy and the increase in consumer confidence. The National Party leader stated in a response in the Parliament that it is a mere coincidence and that the increased spending and major investments without structural coverage from the government revenue will lead to dangerous growth in debt or in painful budget cuts in the future. ‘’Is this the Reform strategy? Spend our reserves now and leave us broke later?’’. Which was promptly left off by the Coalition.
 
Currently the government spends around 1,4 trillion MPD (712 billion CMR) and gains around 1,39 trillion MPD (699 billion CMR) in revenue. A deficit of 25 billion MPD (12 billion CMR), not a big deficit and well within the accepted limits of max 2% deficit of GDP. However the government borrows next to this deficit the required funds to pay for the investments in infrastructure throughout the country. This does lead to better connectivity which in the long run will aid the economy, but the benefits will not be seen shortly for the government coffers. A worry some economists on the right have as does the National Party.
 
Next to the increasing economy the stock market seems to do well with the MNSE rising as investor confidence rises. Especially stocks in the construction, steel, electronics and train companies are going up. A good day for the Mordusian economy.