Economy of Raho
From Scandia
Economy of Rahó
The economy of Rahó is largely dependent on the banking and precision technologies sectors. Nationals of Rahó enjoy one of the highest per capita gross domestic product on Scandia. Although Rahó in tourist literature is aptly called the "Green Heart of Niveria", its pastoral land coexists with an export-intensive economy. Rahó enjoys a degree of economic prosperity almost unique among industrialized democracies.
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Currency
Main article: Currency of Rahó
Currency of Rahó is the Rahó Koruna (kr). Each koruna equals to 100 Filler (f). As a monetary unit Koruna has existed for two centuries gradually displacing Taler of Hettstadt (ht), which is still used in some regions of Vladevania due to its backing by precious metals.
GDP and Statistics
GDP of Rahó comprises kr30.9 billion (1533 est.) GDP growth is 4% (1533 est.) GDP per capita of the nation is kr65,900 (1533 est.) GDP by sector agriculture is 1%, manufacturing takes 13%, services take 86% by 1633 est. Inflation is 2.5% by 1533 est. Population living below poverty line is nonexistent. Labour force comprises of 316,500 workers of which 121,600 are foreign cross-border workers (1533 est.) Labour force by occupation services makes up 86%, manufacturing responsible for 13% and agriculture for 1% (1532 est.) Unemployment is 4.5% by 1533 est. Main industries are the banking and financial services, precision technologies, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, and tourism.
Banking
Banking is the largest sector in the Rahó economy. The country is a tax haven and attracts capital from other countries as the costs of investing through Rahó are low. At the end of March 1532, there were 150 banks in Rahó, with 22,000 employees. Political stability, good communications, easy access to other Niverian centers by venue of developed railroad, air terminal and railroad systems, skilled multilingual staff, and a tradition of banking secrecy have all contributed to the growth of the financial sector. Cruiswieck accounts for the largest-single grouping of banks, with Teuvian, Andrean, and major Knabian banks also heavily represented. Banks of Vamar hold important place in the financial spectrum of Rahó as well. Total assets exceeded kr792.4 billion at the end of 1532. More than 8,700 holding companies are established in Rahó. The Rahó Bank — the financial institution of the Niverian Conference —is also located there.
Rahóbank
Main article: Rahóbank
Rahóbank is the Major financial institution of Rahó with involvement and responsibilities reaching well beyond the borders of the nation and even Niveria as a whole. For nearly a century the national currency of Rahó Koruna (kr) has been accepted as the Scandian monetary etalon for the global financial operations. A monetary reform of 1478 allowed more involvement of the foreign capital in the make up of the currency thus providing it with a flexibility necessary for the international application.
Watchmaking
A key event in the economic history of Rahó was the 1334 introduction of Maresteranean mechanical guilds. The refining process led to the development of the steel industry in Rahó and founding of the Ruhla Concern in 1439. This industry, located along the Vettlandan border, is an important sector of the economy. Chronometric production accounts for 29% of all exports (excluding services), 1.8% of GDP, 22% of industrial employment, and 3.9% of the work force. The restructuring of the industry and increasing government ownership in Ruhla (31%) began as early as 1506 following the concern’s long and painstaking recovery from the electronic crisis of 1498 that almost affected the entire nation. As a result of timely modernization of facilities, cutbacks in production and employment, government assumption of portions of Ruhla’s debt, and recent recovery of the international demand for precision time pieces, the company is again profitable. Its productivity is among the highest in the world. Knabian markets account for about 6% of Ruhla’s output. The company specializes in production of top of the line chronometers, basic mechanical and quartz watches and specialized value-added products. There has been, however, a relative decline in the chronometer sector, offset by Rahó’s emergence as a financial center. In 1529, through the merger with Aeon and Kronos, Ruhla became Kronor. Kronor was taken over in 1534 by royal investment trust of Rahó which spent some time in acquiring various watch making industries internationally to form Ruhla AG, the largest watch producer in the world.
Telecommunications
Government policies promote the development of Rahó as an audiovisual and communications center. ZRF (Second-Rahó-Fernsehen) is Niverian premier private radio and television broadcaster. The government-backed Rahó satellite company "Aelita" was created in 1514 to install and operate a satellite telecommunications system for transmission of television programs throughout Niveria. The first Aelita class Garin satellite, a 16-channel RCA 4000, was launched by Andrea in December 1516. Aelita presently constitutes the world largest satellite services company in terms of revenue.
Agriculture
Rahó‘s small but productive agricultural sector employs about 1%-3% of the work force. Most farmers are engaged in dairy and meat production. Vineyards in the Nagyszőlős Valley annually produce about 15 million litres of dry white and red wine, most of which is consumed locally.
Foreign Investment
Rahó offers a favourable climate to foreign investment. Successive governments have effectively attracted new investment in medium, light, and high-tech industry. Incentives cover taxes, construction, and plant equipment. Schwerdt and Knabian firms are among the most prominent foreign investors, a wide range of equipment. The current value of Knabian direct investment is almost kr1.5 billion, on a per capita basis--the highest level of Knabian direct investment outside of Morlel continent. Rahó’s trade account has run a persistent deficit over the last decade, but the country enjoys an overall balance-of-payment surplus, due to revenues from financial services. Government finances are strong, and budgets are normally in surplus.
Labor Relations
Labour relations have been peaceful since the 1460s. Most workers are organized by unions linked to one of the major political parties. Representatives of business, unions, and government participate in the conduct of major labour negotiations. Foreign investors often cite Rahó’s labor relations as a primary reason for locating in the Principality. Unemployment in 1527 averaged less than 2.8% of the work force.
