Section I. The Overall Economy of the AFN Real gross domestic product -- the output of goods and services produced by labor and property located in the AFN -- increased at an annual rate of 2.1 percent in the fourth quarter of 2014 (1 October 2014 – 31 December 2014), according to the "advance" estimate released by the Office of Economic Analysis. This is a relative decline in comparison to the third quarter (1 July 2014 – 30 September 2014), where real GDP increased 3.2 percent. In the first quarter (1 January 2014 – 31 March 2014), the real GDP grew at 2.9%, a relative decline from the previous year's 3.2% growth. The second quarter (1 April 2014 – 30 June 2014) saw moderate growth at 2.7%. This totals to a yearly average growth of approx. 2.725% annual growth rate, beating the 2013 approximation.
The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, private inventory investment, and federal, prefectural, and local government spending that was partly offset by negative contributions from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, also increased dramatically, as expected in the previous report.
The deceleration in real GDP in the fourth quarter reflected a further deceleration in private inventory investment, continued downturn in residential fixed investment, and decelerations in state and local government spending and in nonresidential fixed investment that were partly offset by accelerations in imports, PCE, and federal government spending and a deceleration in exports.
The price index for gross domestic purchases, which measures prices paid by all residents within the AFN, increased 1.3 percent in the fourth quarter, compared with an increase of 1.1 percent in the third. The second quarter saw a price index increase of 0.9 percent, and the first quarter saw an increase of 0.6 percent. Overall, inflation and price increases increased for the entire year, slowing down the growth in real GDP however slightly.
*Please note values are given in Imperial Kokus (I$) and NationStates Dollars (NSD$)
Economic Data (2014) | Value |
GDP (Real) at 2014 Year End (estimate) | I$ 57.927 trillion (NSD$ 110.634 trillion) |
GDP (Nominal) at 2014 Year End (estimate) | I$ 58.497 trillion (NSD$ 111.723 trillion) |
2014 Growth Rate per annum (approx) | 2.275% |
2014 Average Inflation Rate | 0.975% (below Federal Reserve target) |
Latest Exchange Rate | 1 Imperial Koku (I$) = 1.9099 NationStates Dollar (NSD$) |
Real GDP per capita | I$ 41,693.26 (NSD$ 79,629.97) |
The Empire of Symphonia continues to be the largest constituent member of the AFN in economic size. The Symphonian economy currently contributes I$27.805 trillion (48%)(NSD$53.105 trillion), and recorded an average growth rate of 1.3%. The second largest economy is the Empire of Hienkoku at 23% (I$13.323 trillion; NSD$25.446 trillion), which recorded an extremely slow growth rate of 0.3%. The Kingdom of Huanqiu remains the driver of the AFN economy, growing at 6.2% thanks in part due to its economic catching up effect with the help of AFN and foreign investors. Huanqiu, however, makes up 10.5% of the AFN economy (I$12.165 trillion; NSD$23.233 trillion). The Republic of Cheonsa also makes up 10.5%, with a growth rate of 0.2%. Xinhai and Singapore each grew about 1.79%, and each hold 2% of the total economy (I$2.317 trillion; NSD$4.426 trillion).
The major industries of the AFN continue revolve around the financial, information technology, and manufacturing sectors, which grew at 3.5%, 1.2%, and 2.9% respectively. The main reason for this growth can attributed to the growth in the job markets of West Genevira and Symphony due to private investment, especially as the leading business entities continue to expand their global outreach. Imperial Bank of Symphonia (IBS), Sho-Kunieda Heavy Industries, and a number of firms expanded operations globally, leading to increased domestic activity to help meet foreign demand.
The Metropolis of Symphony, an autonomous prefecture of the Empire of Symphonia, increased it share of the Symphonian economy, moving from 25% to approximately 27% over the past year. The Metropolitan Corporation of Symphony (MetroCorp) announced its decision to make the region a full free trade zone, with the intention of attraction foreign businesses and firms to open offices and factories in Symphony. Investors have reacted positively in that project, though initial openings have yet to introduced to the global market. Symphony and West Genevira each grew 4.2% this year, though their effect on the total Symphonian economy was hampered by negative growth in the Southlands region and the West Coast, as those regions continue to recover slowly from the Great Asian War and the Seong-Kiramashi Conflict.
The agricultural sector continued to decline, accelerating its decline to 5.6% this year. While demand for food products continues to grow, arable land continues to decline as the limited space of the Home Islands is increasingly taken up by the urban commercial and residential projects. Farmers are finding it more lucrative to transform portions of their land into residential complexes where they can charge rent. The mining and energy sectors also declined, growing at -3.2% and -2.1% total this year due to rapidly declining coal and iron deposits in the Central Mountains, as well as a registered decline in petroleum reserves/production from the Liaoning Oil Field in the Sea of Evendium.
Overall the economy of AFN continues to evolve slowly into a tertiary economy based on financial services, information technology, the manufacturing of high technology. Secondary and primary industries continue to decline and their share of laborers has lessened in recent years.