Economy of Daobac

Economy of Daobac

Central Business District of Congvat
Currency	Vang (VNG, Ꝟ)
Fiscal year	Calendar Year
Trade organisations	Foareko, Vespanian Exchange Institute
Statistics
Population	8,553,903 (2020 Census)
GDP	$351 Billion (Nominal, 2020) $490 Billion (PPP, 2020)
GDP rank	54th (Nominal, 2020)
GDP per capita	$41,800 (Nominal, 2020) $45,000 (PPP, 2020)
GDP per capita rank	12th (Nominal, 2020)
GDP by sector	Agriculture/Fisheries 4% Manufacturing 37% Services 59%
Inflation (CPI)	3.05% (2020)
Population below poverty line	8.2% at risk of poverty or social exclusion (2020)
Human Development Index	0.911
Labour force by occupation	Agriculture/Fisheries 12% Manufacturing 23% Services 75%
Unemployment	4.7%
Average gross salary	Ꝟ390,000,000 (Monthly, 2022)
Average net salary	Ꝟ320,000,000 (Monthly, 2022)
Main industries	Environmental Engineering, Aerospace Engineering, Chemical Engineering, Commercial Launch Services, Business Services, Financial Services, Arms Manufacturing, Aquaculture, Food Processing, Tea Processing
Ease-of-doing-business rank	Xth (very easy, 2020)
External
Export goods	Environmental Technologies Fish Products Launch Vehicles Military Vehicles Tea Products
Main export partners	Tsurushima 25.75% Foareko 24.32% Onekawa-Nukanoa 8.05% Anachak Kang 7.50% Belfras 5.94%
Import goods	Metals Chemicals Electronics Consumer Goods Foodstuffs
Main import partners	Tsurushima 23.19% Anachak Kang 21.40% Foareko 18.82% Onekawa-Nukanoa 18.37% Gristol-Serkonos 6.99%
All values, unless otherwise stated, are in US dollars.

Daobac embraces a free market economic system with minimum government intervention. Its total economy is valued at $351 billion, has the 12th highest GDP per capita in the world and is considered as a developed country with a high-income economy. The Daoan economy is generally regarded as free and business friendly due to its minimum trade barriers and tariffs. Its workforce pool is known to be stable and diverse, possessing both highly educated and skilled workers. The country is also known for its harsh policies towards corruption, low tax rates as well as its well maintained and advanced infrastructure. Due to these factors the country attracts large amounts of foreign investment. The country's wealth is well distributed between investing for more economic growth and provide public services to the population. The Bank of Daobac is the nation's central bank and manages Daobac's currency (Vang) and establishes its monetary policies. Daobac is a founding member of the Equatorial Trade Forum (Foareko), a major trade bloc of the Ozerosi ocean and many Daoan companies are a member of the Vespanian Exchange Institute.

Daobac's economic sector is largely driven by the services sector and is well known for its expertise in the fields of engineering, financial and commercial launch services. The country is a pioneer in the field of environmental engineering, pioneering various breakthroughs in the development of what is categorized of green technologies to mitigate the effects of pollution from industrial and urban activities. Its primary focus is within the fields of wastewater treatment and air pollution control technologies. Daobac's aerospace engineering industry designs and manufactures both fighters and various launch vehicles built in collaboration with various partner countries. The bulk of Daobac's financial institutions are comprised of investment and venture capital firms. The former largely invests in companies that specializes in the fields of environmental, chemical and aerospace engineerings whereas the latter provides seed funding to startup technology companies both domestic and abroad.

Though the government maintains a policy of little to no state intervention in the economy, it still plays an important role in the cultivation of various businesses throughout the country. Hoasen Holdings, a sovereign wealth fund, is a state-owned investment fund that holds both majority and minority stakes in various companies ranging from large publicly listed corporations to small and medium-sized enterprises. Daobac's economy largely revolves around four conglomerates: Tran Industries, Mach Group, Khuat Corp and Bao Enterprises. With a presence in almost every facet of the country, both in public & private, these four groups collectively control up to 73% of Daobac's economy and at times has been described as megacorporations. The export-led growth of Daobac's economy meant that the country is heavily dependent on the import of (preferably cheap) raw materials and then refining them to become a higher quality good to be exported abroad. Tsurushima is currently Daobac's largest import & export partner, although in the modern era the nation of Anachak Kang is expected to overtake Tsurushima in becoming Daobac's largest source of imports and exports within five and twenty years respectively.

Economic Policy

Daobac's embracement of an export-oriented economy meant that the country is heavily dependent on an open international trade regime and is vulnurable to periods of downturn in the global economy. The country is reliant upon the import of raw natural resources from abroad, further refining it within Daobac and exporting it abroad. To supplement this the Daoan government has cultivated its population to become both a highly educated and skilled workforce, making them a source of reliable workforce for both domestic and foreign companies. This was achieved through decades of investment as well as major overhauls in the nation's public education institutes. In order to promote a free market in its immediate neighbohood Daobac has successfuly lobbied for the establishment of the Equatorial Trade Forum (Foareko), a trade bloc whose key component include the establishemtn of a free trade area (FTA) amongst its members. The Foareko has also established FTA's with numerous other nations that it has designated as dialogue partners namely: Onekawa-Nukanoa, Gristol-Serkonos and Tsurushima. Daoan imports are dominated by both raw materials such as oil, gas, wood, foodstuffs and rare earth minerals as well as capital goods such as alloys and metals. Exports are dominated by various environmental, aerospace and chemical engineering technologies/services, fish & tea products, launch vehicles and military vehicles.

Industries

Commercial Launch Services

See also: Daobac Space Corporation

Daobac has a long history in space exploration, research & development. The Daobac Space Corporation (DSC) is often considered as one of the pioneers and most well known commercial launch service provider in the world. The DSC's predecessor organization, the Daoan Aernautics Institute (DAI), provided the basis and springboard from which the DSC built its success upon. Using technologies and combined knowledge the DAI has accumulated since the 1960s, the DSC was able to capitalize on the DAI's existing fleet of launch vehicles and offerred competitive services to a wide range of customers both from the government and public sectors. Currently the DSC has secured launched contracts from various countries such as members of the Association of Ozeros Nations, Gristol-Serkonos and Daobac itself. In 2020 the space economy contributed a total of XX billion Soladus to the national economy, comprising XX% of Daobac's total GDP. A combination of its position in the equator and use of partially reusable launch vehicles has allowed the DSC to provide a more competitive price scheme alongside other benefits for it customers. The DSC is a member of the International Aeronautical Union, an independent agency of the AON responsible for coordinating space exploration & research of its member states, and cooperates extensively with the Joint Space Agency in many international projects namely the Unity Space Station.