Economy of Delamaria
_-_2022-04-24.jpg) Labrador is the economic centre of the nation, and a global financial hub. | |
| Currency | Labrador Pound (LBP, £) |
|---|---|
| Statistics | |
| Population |  41,078,000 |
| GDP | £1,606,560,000,000 |
| GDP rank | 8th |
GDP growth | 9.3% (2022) 6.9% (2021) 7.8% (2020) |
GDP per capita | £39,110 |
GDP per capita rank | 13th |
GDP by sector |
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| Public finances | |
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The Economy of Delamaria is a is a highly developed social market economy. As of 2023 it is the 8th largest economy on Eurth by total GDP, and the 13th largest in GDP per capita. Delamaria's economy is highly globalised, with Delamarian and foreign companies taking advantage of Delamaria's membership of the Eastern Argis Trade Zone and ATARA.
The Delamarian economy is dominated by tertiary service industries, employing 72% of Delamarians, and contributing 78% of GDP. The largest tertiary industries operating in Delamaria is the financial services industry. Highly skilled secondary industries are also based in Delamaria, notably pharmaceutical, chemical and IT Technology. Delamaria has a small but valuable primary industry, largely revolving around agriculture, but also around rare earth minerals and oil. Delamaria's economy is centred around Labrador, the largest regional economy in the country, and one of the largest urban economies in the Wurld.
Delamaria was one of the first Argic nations to industrialise, as Great Anglia, Delamaria's colonial master, was the birthplace of the industrial revolution. Anglian industrialists constructed railroads, factories and efficient agriculture. Delamaria grew to be one of the largest and most productive economies in the new wurld, with massive investment from Anglia, even after independence, funding its rapidly growing industries, notably coal and iron mining, steel and shipbuilding. However in the 1920s Anglian industries were being undercut by more efficient Delamarian producers, tarrifs were soon imposed, eliminating much of Delamaria's exports overnight. The economic depression caused by the lack of demand led to a fall in GDP that would not be recovered from until 1965. Delamaria soon moved away from primary industries, and a focus on specialised manufacturing was established in the 1950s, by the 1980s Conover-Grantham Economics took hold, and the service industry came to dominate the economy.
History
Colonial
Initial investment in the economy of what is now Delamaria came from the colonial powers of Great Anglia and Lysia, through crown funded expeditions and settlements, or through patronage of private backers. In the 16th century the primary industries of Delamaria were agriculture, lumber harvesting, fur trapping and herbs (namely tobacco), all of which were dependant on trade with the Occident.
As the population grew through an increase in migration, largely because of Anglian subsidies for settlers, so did interest in investment. Cities such as Labrador, Yorkerdam, Rhodeport, Meyervile and Briselle all flourished as increased trade brought improved infrastructure along with significantly boosted industries. Soon banks, trading corporations and guilds flocked to Delamarian settlements, with Labrador becoming the largest colonial city as well as the largest financial centre in Argis. With the expansion of fisheries in the late 16th century leading to low food prices, an enormous increase in transadlantic migration was seen, developing Delamarian towns and cities greatly, with some comporable to those of Europa. Delamarian trade in the 16th century was dominated by the New Anglian Trade Corporation, later renamed the Labrador Trade and Commerce Corporation, which held a monopoly over several valuable exports, as well as being the largest lender in the colonies. The TRACOM (Trade and Commerce corporation) soon gained a lease for a portion of central Labrador, which over time became known as Tracham.
In the early 17th century, a speculative bubble formed around the fur trading industry in Delamaria. The abundance of fur-bearing animals, such as beavers, attracted intense interest from Europan traders, leading to a surge in investment and speculation. Traders and investors saw the potential in the lucrative fur trade, which drove up prices and fueled a speculative frenzy. The bubble resulted in a rapid expansion of fur trading operations throughout Delamaria. Numerous trading posts and outposts were established in the wilderness, greatly speeding up the settlement of the interior, where trappers and traders sought to capitalize on the demand for furs in Europa. The fur trade became a major economic driver, attracting both individual investors and larger trading companies. However in around 1632 fur prices dropped significantly and much of the economy was in ruin. A 23% decrease in transadlantic shipping to Delamaria is evident of the lack of economic interest, and many fur trapping towns were abandoned soon after. This is considered to be Delamaria's first recession and capital dried up, preventing continued settlement. Though soon after in the mid 17th century discoveries of rich veins of iron and silver improved interest, and soon trade continued much as it had previously.
The colonial governments embraced mercantilism, seeking to maximise exports, and have little dependence on other powers for imports. This was succesful and the economic output of Delamaria grew considerably, and attracted even more settlers. Early forms of capitalism began to be implemented too, as the large trade corporations began to trade their stock, something that would fuel the next era of economic development.
Industrial revolution
Delamaria was one of the first Argic nations to embrace the industrial revolution. This is because of the close connection with Great Anglia, the 'birthplace' of the industrial revolution, though it couldnt have come to fruition had Delamaria not had such large iron and coal deposits.
Imperial and Georgian Eras
Early 20th Century
Modern times
Governanace
Delamarian government economic policy is exercised by the Treasury, lead by the Chancellor. Policy is generally economically liberal, with low taxes and little market regulation. Monetary policy is decided by the Bank of Delamaria, which manages the Labrador Pound.
Delamarian government policy has been dominated by Conover-Grantham Economics since the 1980s, which saw massive degregulation and tax cuts to promote economic growth following a decade of decline in the 1970s. GDP took off as a result, as government intervention supporting declining industries was cut, allowing for the economy to adapt to the demands of the time. This saw tertiary industries come to dominate the economy, with banking deregulation making Delamaria more attractive for international banks.
Primary
Agriculture
Delamaria has one of the most efficient agricultural sectors in the wurld, with high mechinization and technological advancements. Delamaria exceeds its demand for food, producing 115% of its agricultural needs in 2022. Delamaria's largest private corporation, Conover, specialises in food production and agricultural services, making the country the wurld's largest producer of agricultural chemicals as well as products such as corn syrup.
Mining and extraction
In the past the mining sector dominated much of Delamaria, however the tarrif crash, depletion and foreign competition has reduced the value and importance of the mining sector. Delamaria still boats an extraction industry, primarily involved with oil and natural gas, however environmental regulation and the rise of green alternatives has weakened the oil industry.
Secondary
Pharmaceutical and Health
One of the prominent secondary industries in Delamaria is the pharmaceutical sector. The country has established itself as a center for pharmaceutical research, development, and manufacturing. Delamarian pharmaceutical companies such as Pewlett Quayle are known for their innovative drug discoveries, advanced production facilities, and adherence to stringent quality standards. The sector contributes significantly to the country's GDP and exports, supplying both domestic and international markets with a wide range of medications and healthcare products.
Chemical
Another key sector within Delamaria's secondary industries is the chemical industry. Delamarian chemical companies excel in producing a wide array of chemicals, including specialty chemicals, petrochemicals, and industrial chemicals. These products find applications in various sectors such as agriculture, manufacturing, construction, and consumer goods. Delamaria's chemical industry is characterized by advanced production techniques, research and development efforts, and a commitment to environmental sustainability.
IT technology
The IT technology sector is also a thriving component of Delamaria's secondary industries. The country has nurtured a dynamic and innovative tech ecosystem, fostering the growth of numerous IT companies specializing in software development, telecommunications, data analytics, and information technology services. Delamarian IT firms are known for their cutting-edge solutions, research and development capabilities, and contributions to the digital transformation of industries both within the country and globally. Delamaria's largest IT corporations include Arlite, a producer of computers and IT appliances, Upstand, which specialises in wireless technologies, and Helm an intelligent home company.
Vehicles and Defence
Delamaria hosts several major producers of transportation and defence equipment. The country has three major car brands, Lewparth, DA and Harkell, which collectively make up 78% of Delamarian car manufacturing. The country also hosts one of the wurld's largest tractor producers Doe Roberts, which in turn owns the truck manufacturer Rower-Ness.
Delamaria is also home to several defence companies, Wendall Keysmith is by far the largest, and is a major glubal producer of aircraft, military vehicles and armaments. Nexus Helicopters is also based in Delamaria, and is a producer of some of the most widely used helicopters in the wurld.
Tertiary
Financial Services
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The financial services industry is the most valuable individual sector in the Delamarian economy, valued at around £100 Billion in 2019. The Delamarian finance industry is centralised in Labrador, which hosts two stock exchanges, one of the wurld's major financial centres, with two central business districts, Tracham and the Old Dock. Hundreds of financial institutions have offices in Labrador and many more in the rest of Delamaria, with the city acting as a centre for banking, currency exchange, insurance and futures. The city also acts as a centre for legal services, though Yorkerdam is known internationally for its top tier law and consultancy firms.
Delamarian banks have been accused by foreign governments and international institutions for laundering and legitimising billions in illicitly gained capital.
Property and Development
The real estate and development industry has expanded massively in recent decades, largely thanks to incentives for foreign investment such as low interest rates, a decrease in stamp duty and the ease of access to credit. The Labrador property market is one of the most lucritive in the wurld, with property prices rising 250% since 2008. Development has also increased drastically, with more than 350,000 new properties being built in 2022.
Transportation
Delamaria has one of the most advanced transportation infrastructures in Argis, with over 2,000 rail and metro stations, all integrated into the National Rail System which spans nearly 10,000 miles of track in total. Delamaria has five primary air hubs, in Labrador, Yorkerdam, Briselle, Alberta and Bodmonton, with dozens of other minor airports. Labrador's Loguesea International is one of the busiest airports in the wurld, operating not just as a hub for Delamaria but also for traffic entering Argis from Europa and Maranesia and vice versa.
In the 1980s much of the country's transportation infrastructure was semi-privatised with private operators fulfilling government transportation contracts. The country is divided into seven rail boards, managing rail services for certain regions of the country. Airports were entirely privatised, with unpopular airports operating at a loss being closed by the government, and rail vouchers issued to areas affected. Delamarian highways are overseen by national and state governments, with large cross-state roads being mantained and constructed by the Department for Transportation and Trade through Delamarian Highways, and local road management conducted by state agencies.