Great Depression and Economy of Puertego: Difference between pages

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{{Infobox economy
| country    = Puertego
|image = Panama-city-panorama.jpg
|image_size = 300px
|caption = [[San Lina]], the {{wp|Financial centre|financial capital}} of Puertego
| currency  = [[Damillo]] (DMO, Đ)
| year      = {{wp|Calendar year}}
| organs    =
| group      = {{plainlist|
*{{wp|Developing country|Developing/Emerging}}
*{{wp|World Bank Lower-middle income economy|Lower-middle income economy}}}}
| gdp        = {{increase}} $1,108,410,624,000 (nominal, 2027 est.)
| gdp rank  = {{plainlist|
*[[List of countries by GDP|10th (nominal, 2028 est.)]]}}
| growth    = 9.2% (2027)
| per capita = {{increase}} $13,040 (nominal, 2027 est.)
| per capita rank = [[List of countries by GDP|6th (nominal, 2027)]]
| sectors    = *{{wp|Primary sector of the economy|agriculture}}: 25%
*{{wp|Secondary sector of the economy|industry}}: 66%
*{{wp|Tertiary sector of the economy|services}}: 4%
| components =
| inflation  = *12.5%
| bankrate  =
| poverty    = {{decreasePositive}} 36% living at or below $3.20 a day (2026)
| gini      = {{increaseNegative}} 50.8 {{color|darkred|high}}
| hdi        = {{increasePositive}} 0.646 {{color|darkorange|medium}}
| labor      = {{plainlist|
*{{increase}} 96 million (July 2028)
*{{steady}} 80% employment rate (July 2028)}}
| occupations = {{plainlist|
*{{wp|Primary sector of the economy|agriculture}}: 57%
*{{wp|Secondary sector of the economy|industry}}: 33%
*{{wp|Tertiary sector of the economy|services}}: 10%
*(2016)}}
| unemployment = 1.2% (official numbers) 11.7% (estimated)
| average gross salary = Đ7,152,640 ($325.12) monthly (2027)
| gross median =
| average net salary = Đ4,770,920 ($216.86) monthly (2027)
| net median =
| industries = {{hlist|{{wp|machinery}}|{{wp|steel}}|{{wp|cement}}|{{wp|chemicals}}|{{wp|food processing}}|{{wp|lumber}}|{{wp|mining}}|{{wp|textiles}}|{{wp|construction}}|{{wp|alchohol}}}}
| edbr      = {{increase}} {{wp|Ease of doing business index#Ranking|Easy #76 (2027)}}
| exports    =
| export-goods = Tin, Natural Rubber, Sugar, Fish, Chemicals, Iron, Steel, Copper, Gold, Silver, Tobacco, Aluminum, Nickel, Zinc, Textiles, Machinery, Alcohol, Cement, Lithium, Paper, Diamonds, Refined Petroleum, Processed Food
| export-partners =
| imports    =
| import-goods = Grains, Corn, Pharmaceuticals, Fertilizer, Livestock, Automobiles, Electronics, Crude Oil, Natural Gas, Coal, Electricity, Broadcasting Equipment
| import-partners =
| current account =
| FDI        = {{plainlist|
*{{increase}} $512 billion (31 December 2027 est.)
*{{increase}} Abroad: $8 million (31 December 2027 est.)}}
| current account = $37,033 million (2028 est.)
| gross external debt = $1,086,181,153,981 (31 December 2027 est.)
| NIIP      =
| debt      = {{decreasePositive}} 77% of GDP (FY 2027)
| balance    = + 0.7% of CDP
| revenue    =
| expenses  =
| aid        =
| credit    = {{plainlist|
*Scope:
*BB
*Outlook: Stable}}
| reserves  = $105.2 billion
}}


The '''Great Depression''' was a severe worldwide economic depression that took place mostly during the 1910s-1930s. The timing of the Great Depression varied across nations; in most countries, it started in the early 1910s and lasted until the early 1930s. The Great Depression is commonly used as an example of how intensely the world's economy can decline.
The economy of Puertego is a mixed socialist-oriented market economy with the private sector allowed to operate in much of the economy though state control still being common in many industries such as utilities and natural resources. The economy is one of the fastest growing on the continent with it consistently measuring 8-9% GDP growth every year with the economy showing no real signs of slowing in its growth any time soon unless a catastrophic event hits the economy unexpectedly. While the economy has seen rapid and continuous growth ever since 2008 there are still many people who critique many aspects of the economy such as the massive income inequality and poverty allowed to exist in it with Puertego having some of the worst income inequality in the entire world, there has also been criticism towards the countries heavy corruption in state run industries, lack of wage growth despite the growing economy, and the lack of a lot of social welfare commonly found in other countries.
==Background==
During the [[Red Interregnum]], southern [[Levantia]] faced a series of economic crisis. The fear of a socialist [[Urcea]] lead to market crashes in most capitalist nations across the globe, but the quick restoration of the monarchy ended the Depression of [[1900]] and most markets bounced back. The fairly new [[Burgundie|Burgoignesc]] gens des mejans tried to profit off of the war and the Depression of [[1900]]. Markets recovered creating increasingly available credit, but as a consequence of the recovery cycle fueled by investment, economic notables were saddled with more debt than they could afford both in [[Burgundie]] and [[Urcea]]. In [[1909]], the [[Royal Bank of Urcea]] recalled some of those debts and when they were defaulted on there was widespread panic that all of the debts would be recalled. This caused a market panic in [[Urcea]] followed quickly by a similar panic in [[Burgundie]]. The collapse of the powerhouses of the [[Holy Levantine Empire]]'s economy threw the remainder of the empire into a tailspin. [[Urcea]]'s economy recovered somewhat by 1915 due to the proliferation of the major infrastructure and reconstruction projects of [[Patrick III of Urcea|King Patrick III]], but such efforts failed to spread significant benefit to the rest of the Empire, leading the [[Occidental World]] to a sharp depression.


== Impacts ==
The Puertegan economy was formerly almost exclusively based on farming cash crops and selling them abroad with things such as sugar and rubber however in recent times the economy has been moving to a more industrialized one with the country making it very easy and profitable for companies to outsource their production to Puertego, in recent times Puertego has become a large producer of things such as steel, textiles, chemicals, various refined metals, and aluminum though natural resource extraction still remains a large sector of the economy with mining copper, tin, zinc, nickel and other minerals as well as farming sugar, rubber, and tobacco still being large industries in Puertego. Services are a small sector of the economy with the government prioritizing industry and the only real service jobs are in shipping, finance, or banking or government operated utility companies. Remittances are the last part of the Puertegan economy with the country receiving an estimated $70 billion back from the 14 million Puertegan working abroad often in [[Pelaxia]], [[Cartadinia]], and [[Caphiria]]. The economy of Puertego is largely export based with exports outnumbering imports on a scale of 12 to 1, the country is one of the world's largest importers of energy with them buying coal, oil, and natural gas from almost anyone aboard who will sell it to them as well as being a large importer of food.


=== Burgundie ===
== Economic Sectors ==
=== Agriculture ===


=== Urcea ===
=== Mining ===
[[Urcea]] emerged from the [[Red Interregnum]] in 1902 with a fractured [[Economy of Urcea|economy]], outdated or ruined infrastructure, and an inconsistent regulatory scheme due to unresolved issues of the creation of provinces in the 1890s. As part of his [[History of Urcea (1902-1955)|Restoration]], [[Patrick III of Urcea]] ushered in a period of major infrastructure projects combined with loosened standards on lending in order to stimulate the economy; particularly, the Royal Bank of Urcea and others banks, for the first time, would be allowed to lend on interest. Interest-based lending was previously prohibited as a form of usury; previous efforts to do so had been vetoed by office of [[Censor (Urcea)|Censor]], but [[The Enabling]] allowed the King to bypass a prospective veto in 1903. Consequently, the Royal Bank of Urcea began to issue a considerable amount of loans throughout the southern [[Holy Levantine Empire]], particularly to speculators in [[Urcea]] and [[Burgundie]]. The policy was largely successful throughout the first decade of the 20th century, as the combined effects of major military armament, infrastructure reconstruction, and easily obtainable credit had restored [[Urcea]]'s economy to its 1860s strength by 1907. However, in the early months of 1908, the Royal Bank began to warn the [[Concilium Purpaidá]] that received interest was insufficient and that the Bank may face an insolvency issue by the late 1910s. This information reached the public by December of 1908, and in an effort to restore public confidence the Bank recalled two hundred and fifty of the largest debts. In February of 1909, it became public that almost half of the debts were defaulted on, leading to widespread panic that the bank might recall all of its major debts in order to remain solvent and stave off a potential bank run. Markets sank precipitously on 12 February 1909, known as "Black Friday", as major speculators began to sell their shares in various enterprises in order to cover their debts, starting a chain reaction of major sell-offs throughout the Urcean economy. On the following Monday, 14 February 1909, a similar shock hit [[Burgundie]] and rippled back into [[Urcea]]. King Patrick III ordered a week-long bank holiday to prevent a potential bank run, though many depositors were still observing the situation.
[[File:Potosi Décembre 2007 - Industrie Minière.jpg|thumb|left|A mine in the eastern mountains of Puertego]]
Mining has always been and remains a large part of the Puertegan economy with the country producing according to 2025 data 18,500 tons of tin, 1,400,000 tons of zinc, 270,000 tons of nickel, 24,500 tons of cobalt, 2,400 tons of lithium, 120 tons of gold, 4,160 tons of silver, and 45,000,000 tons of iron ore. It is estimated through official state numbers that 14% of the population is employed through mining with wages in the sector being barely below average for Puertego and all being employed in the state-run mining company with private companies in that sector being disallowed by law granting the state a complete monopoly on mining operations in Puertego.


With the market having precipitously declined and capital from elsewhere within the [[Holy Levantine Empire]] drying up by the end of February, Urcean businesses entered into a severe depression. Many were forced to make massive layoffs to stay in business, layoffs which were not approved by the [[Guilds (Urcea)|Guilds]] of [[Urcea]], leading to renewed class conflict and instability within the [[Government of Urcea]]. The [[National Social Union (Urcea)|National Democratic Party]]-lead [[Concilium Daoni]] passed the "National Banking Act" on 12 March 1909, which reinforced pre-Interregnum anti-usury laws and ordered the Royal Bank to restructure by changing from an interest-based to a non-interest based system. This had a two-fold effect: the debt crisis was resolved as debtors found relief from growing interest burdens and credit dried up further in [[Urcea]], slightly exacerbating the crisis. While this effort had an overall negative effect on the economy, it strengthened public confidence in the [[Government of Urcea]].
=== Manufacturing ===


=== Yonderre ===
The manufacturing industry in Puertego has experienced rapid growth in recent years with the countries cities becoming heavily industrialized, manufacturing accounts for 2/3rds of GDP in Puertego and employs 1/3rd of the countries workforce. In 2030 the government of Puertego announced that the manufacturing industry had been completely privatized with the last few factories of the state-owned cement company being liquidated and the company being disbanded, growth in the sector remains extremely high with it experiencing a growth rate of around 14% yearly. The largest manufacturing sectors in Puertego are metallurgy, cement, chemicals, and textiles with smaller industries in arms, alcohol, machinery, food processing, and arms. In Puertego it's estimated that around 80% of manufacturing businesses are foreign owned with the 20% domestic owned ones almost universally being owned by high-ranking government officials in Puertego.
The Great Depression began in [[Yonderre]] following the market panics of the [[Holy Levantine Empire]], Yonderre's primary trading partners. Yonderre had escaped the [[Red Interregnum]] largely unscathed causing overconfidence in the [[Yonderre|Yonderian]] stock market prior to the Great Depression. Large investments had been made following the [[Red Interregnum]] and major building projects were underway all over Yonderre, peaking in 1909. Although the market was shaken by the debt recalls of the Royal Bank of Urcea, a general belief that the crash was only temporary persevered and trading continued with an optimistic belief that the crashes in the Holy Levantine Empire would in fact lead to prosperity. It was soon realized however that the increased spending was simply expanding a fragile monetary bubble, which finally burst in early [[1910]].


The Great Depression hit Yonderian industry hard as the value of exports plummeted. Yonderian heavy industry suffered too, particularly in the steel and lumber sectors, losing lucrative contracts for building materials as well as exports. Many of the major building projects and much of the ongoing urbanization had to be put on hold as a result of bankruptcies, leaving many buildsites in various stages of completion all over Yonderre. As a direct result of this, the Great Depression caused increased levels of unemployment in [[Yonderre]], particularly among unskilled workers. General goods prices increased too, albeit only temporarily, returning to normality by the early [[1910s]]. It would not be until the [[Second Great War]] that Yonderian industry fully recovered, with a sudden spike of arms manufacturing and export of raw steel to the warring parties.
=== Construction ===


[[Category:Crises]]
Construction in Puertego has been a booming sector since the onset of the nation's rapid industrialization with the demand for new factories in the nation with the building of new factories and infrastructure to accommodate the countries rapidly growing industry as well as the governments large scale projects across the country. Construction in Puertego is privately owned with the state-run construction company being liquidated in 2019 with 4 large-scale privately-owned construction companies all filling its place almost immediately with the companies being owned by the current minister of Internal Security, two former members of the National Assembly, and a high-ranking general in the Puertegan army, however besides the big four construction companies in Puertego there are several much smaller privately owned construction companies which often operate on the grey market in an attempt to dodge taxes on their work with construction estimated to be the largest grey market industry in Puertego by far.
[[Category:Economy]]
 
[[Category:Common Core]]
=== Energy & Other Utilities ===
[[Category:History]]
 
[[Category:IWXB]]
The energy and other utility sectors of Puertego remain under complete state control with the state granting itself a monopoly on the sector. The energy sector is primarily fueled through natural gas, crude oil, and coal though hydropower also makes up a sizeable portion of energy generated however the government has made an attempt to switch to less environmentally destructive methods of energy generation with multiple nuclear power plants currently being built in order to meet the nation's growing energy needs. The national energy grid often has trouble producing enough energy to sustain the national energy consumption which spiked significantly after the nations rapid industrialization with the government choosing to save energy for the industrial sector leading to only 1 in every 4-5 streetlights being kept on and scheduled black outs in the nation's cities being a daily occurrence often lasting around 2.5 hours each day and only buildings deemed necessities like government offices and hospitals being unaffected, though there have been initiatives by the government to increase the percentage of the population with access to electricity in their homes only around 45% of Puertegans currently have access with the presence of large amounts of informal housing being a primary obstacle to achiving higher levels. The water industry in Puertego is also state owned just like the electricity industry with many recent improvements to the water supply of Puertego in recent years such as vastly improved sanitation and disinfecting along with access to clean drinking water in cities being almost universal and in rural areas reaching an average of 75% with access.
 
=== Banking & Finance ===
 
 
 
=== Gambling ===
 
The gambling industry in Puertego was originally outlawed in by the 2002 Moral Standards Act which outlawed all unauthorized forms of gambling and provided for penalties ranging from monetary fines to short prison sentences, although the Puertegan government does not list gambling as an offense which someone is able to go to prison over. However, while gambling is still officially illegal in Puertego the law only applies to Puertegan citizens allowing many casinos to operate inside Puertego's borders designed to cater to the interests of tourists with 22 such establishments existing in Puertego. However, despite the restrictions on gambling imposed by the government gambling as a past time has been deeply ingrained in Puertegan culture with men who refuse to take part in gambling often being labeled as unmasculine or cowards with a fear of any risks causing illegal gambling to be a large black-market sector in Puertego with the police force often being paid bribes to look the other way on it. Common forms of illegal gambling in Puertego include cockfights or dogfights, card rooms, and sports books with most of those run by organized crime, the large number of opportunities for gambling plus many Puertegan men feeling they need to gamble due to cultural expectations has led to widespread gambling addiction plaguing Puertego.
 
== Trade & Foreign investment ==
=== Foreign Trade ===
 
=== Free Trade ===
 
=== Foreign Debt, Aid, and Investment ===
 
== Labor Market ==
=== Unionization ===
 
=== Wages ===
 
=== Labor Export ===
 
=== Welfare ===
 
== Enviornmental Damages ==

Revision as of 10:51, 4 July 2023

Economy of Puertego
San Lina, the financial capital of Puertego
CurrencyDamillo (DMO, Đ)
Calendar year
Country group
Statistics
GDPIncrease $1,108,410,624,000 (nominal, 2027 est.)
GDP rank
GDP growth
9.2% (2027)
GDP per capita
Increase $13,040 (nominal, 2027 est.)
GDP per capita rank
6th (nominal, 2027)
GDP by sector
  • 12.5%
Population below poverty line
Positive decrease 36% living at or below $3.20 a day (2026)
Negative increase 50.8 high
Template:IncreasePositive 0.646 medium
Labour force
  • Increase 96 million (July 2028)
  • Steady 80% employment rate (July 2028)
Labour force by occupation
Unemployment1.2% (official numbers) 11.7% (estimated)
Average gross salary
Đ7,152,640 ($325.12) monthly (2027)
Đ4,770,920 ($216.86) monthly (2027)
Main industries
Increase Easy #76 (2027)
External
Export goods
Tin, Natural Rubber, Sugar, Fish, Chemicals, Iron, Steel, Copper, Gold, Silver, Tobacco, Aluminum, Nickel, Zinc, Textiles, Machinery, Alcohol, Cement, Lithium, Paper, Diamonds, Refined Petroleum, Processed Food
Import goods
Grains, Corn, Pharmaceuticals, Fertilizer, Livestock, Automobiles, Electronics, Crude Oil, Natural Gas, Coal, Electricity, Broadcasting Equipment
FDI stock
  • Increase $512 billion (31 December 2027 est.)
  • Increase Abroad: $8 million (31 December 2027 est.)
$37,033 million (2028 est.)
$1,086,181,153,981 (31 December 2027 est.)
Public finances
Positive decrease 77% of GDP (FY 2027)
+ 0.7% of CDP
  • Scope:
  • BB
  • Outlook: Stable
Foreign reserves
$105.2 billion

All values, unless otherwise stated, are in US dollars.

The economy of Puertego is a mixed socialist-oriented market economy with the private sector allowed to operate in much of the economy though state control still being common in many industries such as utilities and natural resources. The economy is one of the fastest growing on the continent with it consistently measuring 8-9% GDP growth every year with the economy showing no real signs of slowing in its growth any time soon unless a catastrophic event hits the economy unexpectedly. While the economy has seen rapid and continuous growth ever since 2008 there are still many people who critique many aspects of the economy such as the massive income inequality and poverty allowed to exist in it with Puertego having some of the worst income inequality in the entire world, there has also been criticism towards the countries heavy corruption in state run industries, lack of wage growth despite the growing economy, and the lack of a lot of social welfare commonly found in other countries.

The Puertegan economy was formerly almost exclusively based on farming cash crops and selling them abroad with things such as sugar and rubber however in recent times the economy has been moving to a more industrialized one with the country making it very easy and profitable for companies to outsource their production to Puertego, in recent times Puertego has become a large producer of things such as steel, textiles, chemicals, various refined metals, and aluminum though natural resource extraction still remains a large sector of the economy with mining copper, tin, zinc, nickel and other minerals as well as farming sugar, rubber, and tobacco still being large industries in Puertego. Services are a small sector of the economy with the government prioritizing industry and the only real service jobs are in shipping, finance, or banking or government operated utility companies. Remittances are the last part of the Puertegan economy with the country receiving an estimated $70 billion back from the 14 million Puertegan working abroad often in Pelaxia, Cartadinia, and Caphiria. The economy of Puertego is largely export based with exports outnumbering imports on a scale of 12 to 1, the country is one of the world's largest importers of energy with them buying coal, oil, and natural gas from almost anyone aboard who will sell it to them as well as being a large importer of food.

Economic Sectors

Agriculture

Mining

A mine in the eastern mountains of Puertego

Mining has always been and remains a large part of the Puertegan economy with the country producing according to 2025 data 18,500 tons of tin, 1,400,000 tons of zinc, 270,000 tons of nickel, 24,500 tons of cobalt, 2,400 tons of lithium, 120 tons of gold, 4,160 tons of silver, and 45,000,000 tons of iron ore. It is estimated through official state numbers that 14% of the population is employed through mining with wages in the sector being barely below average for Puertego and all being employed in the state-run mining company with private companies in that sector being disallowed by law granting the state a complete monopoly on mining operations in Puertego.

Manufacturing

The manufacturing industry in Puertego has experienced rapid growth in recent years with the countries cities becoming heavily industrialized, manufacturing accounts for 2/3rds of GDP in Puertego and employs 1/3rd of the countries workforce. In 2030 the government of Puertego announced that the manufacturing industry had been completely privatized with the last few factories of the state-owned cement company being liquidated and the company being disbanded, growth in the sector remains extremely high with it experiencing a growth rate of around 14% yearly. The largest manufacturing sectors in Puertego are metallurgy, cement, chemicals, and textiles with smaller industries in arms, alcohol, machinery, food processing, and arms. In Puertego it's estimated that around 80% of manufacturing businesses are foreign owned with the 20% domestic owned ones almost universally being owned by high-ranking government officials in Puertego.

Construction

Construction in Puertego has been a booming sector since the onset of the nation's rapid industrialization with the demand for new factories in the nation with the building of new factories and infrastructure to accommodate the countries rapidly growing industry as well as the governments large scale projects across the country. Construction in Puertego is privately owned with the state-run construction company being liquidated in 2019 with 4 large-scale privately-owned construction companies all filling its place almost immediately with the companies being owned by the current minister of Internal Security, two former members of the National Assembly, and a high-ranking general in the Puertegan army, however besides the big four construction companies in Puertego there are several much smaller privately owned construction companies which often operate on the grey market in an attempt to dodge taxes on their work with construction estimated to be the largest grey market industry in Puertego by far.

Energy & Other Utilities

The energy and other utility sectors of Puertego remain under complete state control with the state granting itself a monopoly on the sector. The energy sector is primarily fueled through natural gas, crude oil, and coal though hydropower also makes up a sizeable portion of energy generated however the government has made an attempt to switch to less environmentally destructive methods of energy generation with multiple nuclear power plants currently being built in order to meet the nation's growing energy needs. The national energy grid often has trouble producing enough energy to sustain the national energy consumption which spiked significantly after the nations rapid industrialization with the government choosing to save energy for the industrial sector leading to only 1 in every 4-5 streetlights being kept on and scheduled black outs in the nation's cities being a daily occurrence often lasting around 2.5 hours each day and only buildings deemed necessities like government offices and hospitals being unaffected, though there have been initiatives by the government to increase the percentage of the population with access to electricity in their homes only around 45% of Puertegans currently have access with the presence of large amounts of informal housing being a primary obstacle to achiving higher levels. The water industry in Puertego is also state owned just like the electricity industry with many recent improvements to the water supply of Puertego in recent years such as vastly improved sanitation and disinfecting along with access to clean drinking water in cities being almost universal and in rural areas reaching an average of 75% with access.

Banking & Finance

Gambling

The gambling industry in Puertego was originally outlawed in by the 2002 Moral Standards Act which outlawed all unauthorized forms of gambling and provided for penalties ranging from monetary fines to short prison sentences, although the Puertegan government does not list gambling as an offense which someone is able to go to prison over. However, while gambling is still officially illegal in Puertego the law only applies to Puertegan citizens allowing many casinos to operate inside Puertego's borders designed to cater to the interests of tourists with 22 such establishments existing in Puertego. However, despite the restrictions on gambling imposed by the government gambling as a past time has been deeply ingrained in Puertegan culture with men who refuse to take part in gambling often being labeled as unmasculine or cowards with a fear of any risks causing illegal gambling to be a large black-market sector in Puertego with the police force often being paid bribes to look the other way on it. Common forms of illegal gambling in Puertego include cockfights or dogfights, card rooms, and sports books with most of those run by organized crime, the large number of opportunities for gambling plus many Puertegan men feeling they need to gamble due to cultural expectations has led to widespread gambling addiction plaguing Puertego.

Trade & Foreign investment

Foreign Trade

Free Trade

Foreign Debt, Aid, and Investment

Labor Market

Unionization

Wages

Labor Export

Welfare

Enviornmental Damages