AFN Y2015 Year End Fiscal-Economic Report [WIP]

[Empire of Symphonia]

Asian Federation of Nations Ministry of Trade and Economics

Year 2015 Fiscal and Economic Report

Table of Contents

Topic 1 – Economic Report

Section 1. Overall Internal Economy AFN-UK
Section 2. Economic Relations between the AFN and Aquitayne
Section 3. Economic Relations between the AFN and Astyria
Section 4. Internal and External Issues

Topic 2 – Fiscal Report - To Be Released

Section 1. Overall Fiscal Situation
Section 2. Defense Budget
Section 3. Public Services Budget
Section 4. Internal and External Issues

[Empire of Symphonia]

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 1.1 percent in the fourth quarter of 2014 (1 October 2015 – 31 December 2015), 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 2015 – 30 September 2015), where real GDP increased 1.9 percent. In the first quarter (1 January 2015 – 31 March 2015), the real GDP grew at 2.1%, a relative decline from the previous year's 2.725% growth. The second quarter (1 April 2015 – 30 June 2015) saw moderate growth at 1.8%. This totals to a yearly average growth of approx. 1.725% annual growth rate, which fell behind the 2014 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 1.512 percent in the fourth quarter, compared with an increase of 1.42 percent in the third. The second quarter saw a price index increase of 1.37 percent, and the first quarter saw an increase of 1.5 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 (2015)	Value
GDP (Real) at 2015 Year End (estimate)	I$ 58.926 trillion (NSD$ 108.648 trillion)
GDP (Nominal) at 2015 Year End (estimate)	I$ 59.416 trillion (NSD$ 109.324 trillion)
2015 Growth Rate per annum (approx)	1.725%
2015 Average Inflation Rate	0.831% (below Federal Reserve target)
Latest Exchange Rate	1 Imperial Koku (I$) = 1.84 NationStates Dollar (NSD$)
Real GDP per capita	I$ 42,412.55 (NSD$ 78,039.10)

The major industries of the AFN continue revolve around the financial, information technology, and manufacturing sectors, which grew at 2.1%, 1.9%, and 1.3% respectively. Demand for related products continues to expand around the world, in which domestic producers have been able to attract newer investment as well as develop export markets. Symphonian financial entities have been and remain a leading edge in foreign investment, lending some I$ 5.2 trillion in infrastructure investment and medical research fields. Heavy manufacturing, centered on arms production, expanded slightly as a result of procurement sales of the Hamasaka Class missile destroyer on the foreign markets.

Within the AFN, the domestic consumer market remains the key towards driving economic growth. Imports surged by I$600 billion, mainly in raw materials and intermediate industrial goods from Aquitayne as well as food-related products. The housing market remains questionable, as a result of significant land value increases and the large increases in rent values, tracked by the 2015 Rent Housing Index by the Office of

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.