Economy of The Oan Isles

The Oan Isles has a GDP of 4,8 trillion SHD. Three quarters of the economy are made up of the state and state-owned enterprise and a quarter is made up of the private sector. The biggest sector of the economy is the services sector which accounts for half of the economy, while the secondary sector accounts for a third and the rest is made up of the primary sector.

The Oan Isles has two currencies. It uses the Kirib for foreign transactions, while it uses the Oan Dollar for domestic transactions. The Oan dollar is pegged to the kirib. The Bank of The Oan Isles is the central bank of The Oan Isles. It issues Oan currency, shapes monetary policy, regulates the banking sector, acts as a lender of last resort and acts as a banker for the state.

The debt of the Oan Isles is over twice the value of GDP and wasted spending runs into billions of dollars. The Oan Isles benefits from its strategic location between the continents of Aurora and Gondwana, from a productive population, efficient management of the economy and access to an abundance of non-mineral natural resources. Although income is distributed unevenly, this is mitigated by high taxes and a large welfare system.

Primary sector

The primary sector relates to the extraction of natural resources or the production of foodstuffs. The Oan Isles has very small amount of minerals. Most minerals are imported. The only mineral that is in abundance is natural gas. The primary sector is subsequently dominated by two industries: forestry and fisheries

Forestry

The Oan Isles' geography and climate are characterised as monsoon jungle. The Oan Isles has an abundance of trees. Forestry makes up 400 billion dollars of GDP. The government has a plethora of regulations to prevent our forests from being exploited and depleted. Plantations produce half of the wood, while the rest come from natural forests. Hardwood trees provide almost all of the timber. The largest sources of timber are: