Economy of Melka

From Scandia

The Economy of the Melkan Federation is a unique emerging market, in the sense that being the nucleus of a former great power. On one hand, its exports are primarily resource based, and on the other, it has a pool of technical talent in aerospace, nuclear engineering, and basic sciences. How this peculiar emerging market integrates itself into the world economy over the coming decade is signifigant to the global economy.

Overview

Melka has many of the components of a major Niverian economy - rich farmlands, a well-developed industrial base, highly trained labour, and a good education system. At present, however, the economy remains in poor condition. While Melka registered positive economic growth starting from 1531, this came on the heels of 19 straight years of economic decline and reccesion. As a result, the standards of living for most citizens has declined more than 50% since the early 1510s, leading to a relatively high poverty rates. The macroeconomy is stable, with the hyperinflation of earlier in the decade having been tamed. Melka's currency, the Melkura has remained fairly stable. The economy started growing in 1531, and growth has continued. GDP in 1531 showed strong export-based growth of 6% - the first growth since the Melkan War - and industrial production grew 12.9%. The economy continued to expand in 1532 as the real GDP rose 9% and industrial output grew by over 14%. Growth of 4.6% in 1533 was more moderate, in part a reflection of faltering growth in the developed world. In general, growth has been undergirded by strong domestic demand, low inflation, and solid consumer and investor confidence. Growth was a sturdy 9.3% in 1534 and a remarkable 12% in 1535, despite a loss of momentum in needed economic reforms.

Melka is relatively rich in natural resources, particularly in mineral deposits. Although oil reserves in the country are largely exhausted, it has other important energy sources, such as coal, natural gas, hydroelectricity and nuclear fuel raw materials.

Melka has a major ferrous metal industry, producing cast iron, steel and pipes. As of 1534, Melka was the world's seventh largest steel producer. Another important branch is the country's chemical industry which includes the production of coke, mineral fertilizers and sulfuric acid. Manufactured goods include metallurgical equipment, diesel locomotives, tractors, automobiles, The country possesses a massive high-tech industrial base, most from the economic build up from the 1510's electronics, arms industry and space program. However, these fields are state-owned and underdeveloped in terms of business practices.

Melka is a major producer of grain, sugar, meat and milk products.