Economy of Pelaxia
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| Currency | Salia |
|---|---|
Trade organisations | UNESARP |
Country group | UNESARP |
| Statistics | |
| GDP |  $7,210,103,363,760 (nominal, 2027 est.) |
| GDP rank | |
GDP growth | 0.07% (2027) |
GDP per capita | $32.286,35 (nominal, 2027 est.) |
GDP per capita rank | 29th (nominal, 2026) |
GDP by sector |
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 33.0 medium | |
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All values, unless otherwise stated, are in US dollars. | |
Pelaxia has a highly industrialized, developed, socialist market economy that incentives social ownership and democratic control of means of production effectively and constantly in various forms such as public, cooperative, collective ownership with the possibility of combining the three. In this sense it discourages the existence of private ownership of means of production (private productive property), but completely upholds and defends the right to personal property. Pelaxia mostly utilizes the market mechanism for the allocation of capital goods and other means of production although there is an edge for central or local intervention/planning.
The public sector is among the largest in the world as a percentage of the overall gross domestic product. The country has a very high standard of living compared with other socialist countries, and a strongly integrated welfare system. Pelaxia's modern manufacturing and welfare system rely on a financial reserve produced by exploitation of natural resources such as oil.
With respect to foreign trade, the key economic sector is manufacturing, but much of Pelaxia's economic growth has been fueled by an abundance of natural resources, such as petroleum exploration and production, hydroelectric power, and fisheries. The largest industries are electronics (21.6 percent), machinery, vehicles and other engineered metal products (21.1 percent), oil industry (13.1 percent), and chemicals (10.9 percent).
Types of economic exploitation
Public Ownership: refers to property interests that are vested in the state or a public body representing a community as opposed to an individual or private party. State ownership may refer to ownership and control of any asset, industry, or enterprise at any level (national, regional, local or municipal); or to non-governmental public ownership. The Pelaxian Federal government may own partially in this sense the Banking System and several means of transportation (trains, highways) among other, while municipal and provincial jurisdictions may own and distribute lands articulately, although anarcho-communism may exist in some rural municipalities.
Cooperative: autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled business. Worker cooperatives are owned and self-managed by its workers. A cooperative enterprise may mean a firm where every worker-owner participates in decision-making in a democratic fashion, or it may refer to one in which management is elected by every worker-owner, and it can refer to a situation in which managers are considered, and treated as, workers of the firm. There are many variations of self-management. In some variants, all the worker-members manage the enterprise directly through assemblies; in other forms, workers exercise management functions indirectly through the election of specialist managers. Self-management may include worker supervision and oversight of an organization by elected bodies, the election of specialized managers, or self-directed management without any specialized managers as such. The goals of self-management are to improve performance by granting workers greater autonomy in their day-to-day operations, boosting morale, reducing alienation, and when paired with employee ownership, eliminating exploitation.
Collective Ownership: ownership of industrial assets or land by all members of a group for the benefit of all its members. It is distinguished from common ownership, which implies open-access, the holding of assets in common, and the negation of ownership.
Sectors
By GDP participation, the largest sector of the economy is services at 54.2%, followed by manufacturing and refining at 33.2%. Primary production is 12.6%.
Primary
Agriculture
In Pelaxia, the large majority of farms are in western Pelaxia. Agricultural goods represent 12% of all palmerian exports. During the late 1990’s, the Meireles administration implemented a set of policies that addressed food security on federal, state and municipal levels, the aim of which was to increase federal government support to collective farms. These policies were deepened during the Meireles administration and consolidated after the Pelaxian Revolution in 2006. In 2007, the Secretary of Social Agrarian Development (SSAD) was created to support cooperative farms and promote land reform and sustainable land development. A host of government policies and government-supported programs in the interest of cooperative farmers then emerged, where the cooperative farm is recognized as a pillar of national development. Since then, the SSAD along with other institutions were created with the cooperative farmers and other traditional communities' interests in mind where policies targeting cooperative farmers were designed to introduce market incentives, promote adequate food distribution and provide technical assistance. The principal agricultural products of Pelaxia are cattle, coffee, cotton, corn, rice, soy, wheat, sugarcane, tobacco, beans, floriculture and fruit.
Palm oil production holds significant importance within the Pelaxian agricultural sector, serving as a key economic driver and contributing to the nation's export revenue. Pelaxia's tropical climate and fertile lands provide optimal conditions for cultivating oil palm trees, making it one of the leading producers of palm oil in the region. The cultivation and processing of palm oil not only generate employment opportunities for rural communities but also contribute substantially to the country's Gross Domestic Product (GDP).
However, the expansion of palm oil plantations in Pelaxia has raised concerns regarding its impact on urban development and biodiversity. The rapid conversion of forested areas into palm oil plantations has led to deforestation and habitat loss, resulting in the displacement of indigenous flora and fauna. Moreover, the encroachment of palm oil plantations into ecologically sensitive regions has escalated conflicts over land use and exacerbated environmental degradation. As urban areas expand to accommodate population growth and industrialization, the demand for land suitable for palm oil cultivation intensifies, further exacerbating the pressure on natural ecosystems. Striking a balance between economic development and environmental conservation remains a pressing challenge for Pelaxia as it seeks to sustainably manage its palm oil industry while preserving biodiversity and mitigating the adverse impacts of urbanization.
Poultry
Cattle
Fishery
Oil
Since the discovery of Kindred Sea oil in Pelaxian waters during the early 1960’s, exports of oil and gas have become very important elements of the economy of Pelaxia. With oil production peaking, disagreements over exploration for oil in the Kindred Sea, the prospect of exploration in the main land, as well as growing international concern over global warming, energy in Pelaxia is currently receiving close attention. This abundant amount of natural resources within Pelaxia, has given the country lucrative revenue. Crude oil and natural gas accounted for 20% of the country's total export value in 2027. As a share of GDP, the export of oil and natural gas is approximately 11%.
As a means to ensure security and mitigate the fluctuations in the price of oil, the Pelaxian government funnels a portion of this export revenue into a pension fund, the Fondo de Soberanía Nacional. The Pelaxian government receives these funds from their market shares within oil industries, such as their two-thirds share of PETROPEL, and allocates it through their government controlled domestic economy. This combination allows the government to distribute the natural resource wealth into welfare investments for the mainland. Tying this fiscal policy to the oil market for equity concerns creates a cost-benefit economic solution towards a public access good problem in which a select few are able to reap the direct benefits of a public good.
Domestically, Pelaxia has addressed the complications that occur with oil industry markets in protecting the mainland economy and government intervention in distributing its revenue to combat balance-of-payment shocks and to address energy security.
Energy
The energy grid meets the country's power demands using 40% fossil fuels while 35% is satisfied through hydroelectric power, and it has been called an "early leader" in hydroelectric energy. Most of these hydroelectric installations are located in the northern region of the country, a region historically crippled by an increasing population and thus a steady high demand for power which has led to seasonal major power outages in the most populated urban centers. Pelaxian roads are the primary carriers of freight and passenger traffic. The road system totaled 2,720,000 km in 2029.The total of paved roads increased from 60,496 km in 1967 to 515,000 km in 2028.
Pelaxia is the 3th largest energy consumer in Sarpedon. At the same time, it is an important oil and gas producer in the region and the world's second largest hydropower producer. The government agencies responsible for energy policy are the Ministry of Petroleum, Mining and Energy, the National Agency for Public Energy(ANEP), the National Commision of Petroleum, Natural Gas and Biofuels and the National Agency for Alternative Energy Development. State-owned companies PETROPEL and PELHYDRO are the major players in Pelaxia's energy sector, as well as Sarpedon’s.
The main characteristic of the Pelaxian energy matrix is that it is much less renewable than that of the world. While in 2029 the world matrix was only 34% made up of renewable energy, Pelaxia's was at 25%. Petroleum and oil products made up 42..3% of the matrix; hydraulic energy, 35.4%; sugar cane derivatives, 8%; natural gas, 12.2%; firewood and charcoal, 2,1%; varied renewable energies, 1.3%; mineral coal, 1%; nuclear, 0.4%, and other non-renewable energies, 0.2%.
In the electric energy matrix, the difference between Pelaxia and the world is less. The Pelaxian electric matrix is composed of: hydroelectric energy, 64.9%; biomass, 8.4%; wind energy, 8.6%; solar electric, 1%; natural gas, 9.3%; oil products, 2%; nuclear, 2.5%; coal and derivatives, 3.3%.
Secondary
Most large industry is concentrated in the center and coastal areas of Pelaxia. The manufacturing industry is a significant employer of about 22% of the labour force.
Electronics
The Pelaxian electronics and electrotechnics industry relies on heavy investment in R&D. The electronics industry in Pelaxia is characterized by its relatively small scale and limited export capacity. While the sector has experienced growth since its inception in the early 2000s, Pelaxia primarily serves as an assembly hub for foreign electronics producers rather than a major manufacturer of electronic components. The country's electronics industry heavily relies on imports for raw materials, parts, and technology, which poses challenges in terms of self-sufficiency and competitiveness.
Pelaxia's electronics sector is predominantly focused on the assembly of small electronics, such as consumer electronics, mobile devices, and electronic components. The country's skilled labor force and relatively low labor costs have attracted foreign investment, leading to the establishment of assembly plants and manufacturing facilities operated by multinational corporations. However, the industry's dependency on imported materials and technology limits its capacity for innovation and value addition. The bulk of Pelaxia's electronics industry is concentrated in the Albalitor area and Font, where a significant number of assembly plants and manufacturing facilities are located. These regions serve as key hubs for electronics production and assembly due to their strategic location, infrastructure, and access to skilled labor. The presence of industrial zones and specialized economic zones in these areas has further facilitated the development of the electronics sector.
Despite its limitations, the electronics industry plays a significant role in Pelaxia's economy by providing employment opportunities and contributing to economic growth. The sector has created jobs in assembly plants and related industries, contributing to the country's overall industrial development. However, Pelaxia faces challenges in terms of improving the competitiveness of its electronics industry, reducing dependency on imports, and fostering domestic innovation and research in electronics manufacturing. Efforts to strengthen the electronics sector's value chain, enhance technology transfer, and promote investment in research and development are crucial for Pelaxia to achieve sustainable growth and competitiveness in the global electronics market.
Creative Industries
The Creative Industry in Pelaxia has experienced significant growth and development in recent years, emerging as a key driver of economic innovation and cultural expression. With a diverse range of sectors including film, music, fashion, design, architecture, advertising, and digital media, the creative industry contributes substantially to Pelaxia's GDP, accounting for approximately 8% of the country's total economic output. In terms of employment, the creative industry employs over 15,000,000 individuals across various disciplines, ranging from filmmakers and musicians to graphic designers and advertising professionals. This vibrant workforce is characterized by its innovation, entrepreneurship, and cross-disciplinary collaboration, fostering a dynamic ecosystem of creativity and talent.
Pelaxia's film industry, in particular, has garnered international acclaim, with Pelaxian filmmakers winning awards at prestigious film festivals around the world. The Macadamia Film Festival, held annually in the city of Macadamia, serves as a platform for showcasing Pelaxia's cinematic talent and promoting cultural exchange within the global film community.
Metals, engineering and manufacturing
Pelaxia has an abundance of minerals, but many large mines have closed down, and most raw materials are now imported. For this reason, companies now tend to focus on high added-value processing of metals. The exploitation include nickel, tin, chromite, bauxite, beryllium, copper, lead, tungsten, zinc, gold and exportation includes finished products such as steel roofing and cladding, welded steel pipes, copper pipe and coated sheets. With regard to vehicles, the Pelaxian motor industry consists mostly of manufacturers of tractors, trucks, buses and cars. In addition, Pelaxia also produces train rolling stock.
Pelaxia's mining, metal, and manufacturing industries represent key sectors of the nation's economy, with a rich history rooted in resource extraction and industrial production. While the country boasts an abundance of minerals, including nickel, tin, chromite, bauxite, beryllium, copper, lead, tungsten, zinc, and gold, many large mines have ceased operations over time, leading to a shift towards high-value processing of metals. Today, Pelaxian companies focus on the refinement and processing of raw materials to create finished products with added value.
The heart of mining and metallurgical activity in Pelaxia lies in the region of Montia, a historical mining province since the 17th century and a hub of industrial development since the 19th century. Montia's rich mineral deposits have fueled the growth of the mining and metalworking sectors, driving innovation and technological advancement in the industry. From steel roofing and cladding to welded steel pipes, copper pipe, and coated sheets, Pelaxia's manufacturing sector produces a diverse range of finished metal products for domestic consumption and export.
In addition to its metalworking, Pelaxia boasts a robust automotive industry, primarily focused on the production of tractors, trucks, buses, and cars. Leading automobile manufacturers such as Saddlebred, Leopardo, Genêt, and Trotter contribute to the country's automotive landscape, producing vehicles tailored to meet the diverse needs of Pelaxian consumers. Furthermore, Vías de Pelaxia stands as a prominent player in the manufacturing sector, owning the largest train rolling stock construction facilities in the country.
Chemical industry
The chemical industry is one of the Pelaxia's largest industrial sectors and it produces an enormous range of products for the use of other industrial sectors, especially for agriculture. In addition, its produces plastics, chemicals, paints, oil products, pharmaceuticals, environmental products, biotech products and petrochemicals.
The chemical industry in Pelaxia stands as a cornerstone of the nation's industrial landscape, contributing significantly to the economy. Representing approximately 15% of the industrial sector's contribution to the GDP, and 5% of the overall GDP, the chemical industry plays a pivotal role in Pelaxia's economic growth and stability. Established as one of the country's oldest industrial sectors dating back to the 1860s, it has evolved into a diverse and dynamic sector, producing a vast array of products essential for various industries.
At the forefront of Pelaxia's chemical industry are renowned laboratories and agrochemical companies such as Aaron, Trescothik, and Brota. These entities lead the charge in research, development, and production of chemicals, plastics, paints, pharmaceuticals, environmental products, biotech products, and petrochemicals. The chemical industry's output not only fuels other industrial sectors but also plays a crucial role in supporting agriculture, providing essential materials and solutions for crop protection and enhancement
Pharmaceutical industry
Automotive
The automotive industry in Pelaxia stands as a cornerstone of the nation's economy, employing over 2,500,000 people across more than 2,100 firms as of 2026. Renowned for its cost-effective designs and versatile vehicle offerings, Pelaxia's automotive sector contributes a substantial 10.5% to the country's GDP, making it a significant player in both regional and global markets. With a production capacity of approximately 9,170,000 cars annually, Pelaxia ranks among the leading automobile producers worldwide.
At the forefront of Pelaxia's automotive landscape is the Saddlebred Group, a dominant force in the industry that commands over 90% of the market share. Renowned for its diverse portfolio of brands, the Saddlebred Group encompasses mainstream models under the Saddlebred brand, upmarket vehicles through Trotter, and exclusive offerings via the Scilicet brand.
Defense
Terciary
Tourism
Transport
(WIP)
Public Sector
As of 2028, government spending is about 55% of the Gross Domestic Product of Pelaxia.
The roots of the socialist movement in Pelaxia were based on dangerous working conditions, exploitative labor relations policies, and the demand for collective bargaining. As socialism became part of the mainstream labor movement, it also became part of the mainstream political discourse leading up to the proliferation of a plural Marxist political rhetoric that has benefited from the general absence of charismatic leaders. The state has large ownership positions in key industrial sectors, such as the strategic petroleum sector (PETROPEL), hydroelectric energy production (PELHYDRO), and wind energy production (Ventura). As an economic environment, Pelaxia's judiciary is efficient and effective. Pelaxia is highly open to investment and free trade. Pelaxia has top levels of economic freedom in many areas, although there is a heavy tax burden and inflexible job market.
Fondo de Soberanía Nacional
The FSN was set up in 1999 to underpin long-term considerations when phasing petroleum revenues into the Pelaxian economy
FSN manages the fund on behalf of the Ministry of Economy and Finance, which owns the fund on behalf of the Pelaxian people. The ministry determines the fund’s investment strategy, following advice from among others FSN and discussions in Parliament. The management mandate defines the investment universe and the fund's strategic reference index. The ministry regularly transfers petroleum revenue to the fund. The capital is invested abroad, to avoid overheating the Pelaxian economy and to shield it from the effects of oil price fluctuations. The fund invests in international equity and fixed-income markets and real estate. The aim is to have a diversified investment mix that will give the highest possible risk-adjusted return within the guidelines set by the ministry.
The fund was set up to give the government room for manoeuvring in fiscal policy should oil prices drop or the mainland economy contract. It also served as a tool to manage the financial challenges of an ageing population and an expected drop in petroleum revenue. The fund was designed to be invested for the long term, but in a way that made it possible to draw on when required.
The fund is an integrated part of the government’s annual budget. Its capital inflow consists of all government petroleum revenue, net financial transactions related to petroleum activities, net of what is spent to balance the state’s non-oil budget deficit. This means the fund is fully integrated with the state budget and that net allocations to the fund reflect the total budget surplus, including petroleum revenue. Fiscal policy is based on the guideline that over time the structural, non-oil budget deficit shall correspond to the real return on the fund, estimated at 30 percent. The so-called spending rule, stating that no more than 30 percent of the fund over time should be spent on the annual national budget, was first established in 2000.
Taxation
(WIP)