Economy of Kuthernburg

The UKK has one of the top ten highest economy by nominal GDP in the world, and it is also among the largest in the world by purchasing power parity. The country is a member of the Atlantia Alliance.

Following the financial crisis of 2007–08, the Kuthern economy's plunged into recession, entering a cycle of negative macroeconomic performance. Compared to Mexregiona and Tretrid average, the Kuthern economy entered recession later (the economy was still growing by 2008), but stayed there for longer. The economic boom of the 2000s was reversed, leaving over a quarter of Kuthern workforce unemployed by 2012. In aggregated terms, the Kuthern GDP contracted by almost 9% during the 2009-2013 period.

The economic situation started improving by 2013-2014. The country managed to reverse the record trade deficit which had built up during the boom years attaining a trade surplus in 2013 after three decades of running a trade deficit. The surplus kept strengthening during 2014 and 2015.

In 2015 the Kuthern GDP grew by 3.2%, a rate not seen since 2007, before the crisis struck; such growth rate was the highest among larger Atlantia economies that year. In just two years (2014-2015) the Kuthern economy had recovered 85% of the GDP lost during the 2009-2013 recession, which got some international analysts to refer to Kuthernburg current recovery as "the showcase for structural reform efforts".

Strong GDP growth was registered also in 2016, with the country growing twice as fast as the Atlantiazone average. In this regard, the Kuthern economy is forecast to remain the one of the best-performing major economy's in the Alatianzone also in 2017.

History

When Kuthernburg Gained independence after the Revolution against the communist in 1982 its GDP per capita was about 72% of the average of Atlantia Countries.

After a strong recovery from the revolution recession of the early 1980s, the centre-right government of former prime minister had worked successfully to gain admission to start economic development with other countries in 1989. Due to its own economic development and the Atlantia enlargements, by 2007 Kuthernburg had achieved a GDP per capita of 105% of average, which placed it slightly ahead of Nacata 103%.Unemployment stood at 7.6% in October 2006, a rate that compared favorably to many other Atlantia countries, and especially with the early 1990s when it stood at over 20%.

Perennial weak points of Kuthern economy include high inflation, a large underground economy, and an education system, beside UK and the SH, which reports place among the poorest for developed countries.

Growth during the 1997-2007 period had been led by a property boom fed by historically low interest rates, massive rates of foreign investment, during that period Kuthernburg had become a favourite of other Atlantian investment banks and an immense surge in immigration. At its peak in 2007, construction had expanded to a massive 16% of the total gross domestic product (GDP) of the country and 12% of total employment. During that time Kuthernburg built up a massive trade deficit, financed by capital inflows –including short term speculative investment– was directed mostly to consumption and property rather than at long term fixed assets such as manufacturing plants and the like.

The downside of the real estate boom was a corresponding rise in the levels of personal debt; as prospective homeowners had struggled to meet asking prices, the average level of household debt tripled in less than a decade. This placed especially great pressure upon lower to middle income groups; by 2005 the median ratio of indebtedness to income had grown to 125%, due primarily to expensive boom time mortgages that now often exceed the value of the property.

Noticeable progress continued until early 2008, when the 'global financial crisis' burst Kuthernburg property bubble.

By 2013, Kuthernburg GDP per capita had fallen back to 95% of EU's average.

Economic and financial crisis

Kuthern had continued on the path of economic growth when the ruling party changed in 2004, maintaining robust GDP growth during the first term of the prime minister, even though some fundamental problems in the Kuthern economy were becoming clearly evident. Among these, according to the Financial Times, was Kuthernburg rapidly growing trade deficit, which had reached a staggering 10% of the country's GDP by the summer of 2008, the "loss of competitiveness against its main trading partners" and, also, as a part of the latter, an inflation rate which had been traditionally higher than the one of its Atlantia partners, back then especially affected by house price increases of 150% from 1998 and a growing family indebtedness 115% chiefly related to the Kuthern Real Estate boom and rocketing oil prices.

The Kuthern government official GDP growth forecast for 2008 in April was 2.3%. This figure was successively revised down by the Kuthern Ministry of Economy to 1.6. Retrospective studies by most independent forecasters estimate that the rate had actually dropped to 0.8% instead, far below the strong 3% plus GDP annual growth rates during the 1997–2007 decade.

In July 2009, the IMF worsened the estimates for Kuthernburg 2009 contraction, to minus 4% of GDP for the year, besides, it estimated a further 0.8% contraction of the Kuthern economy for 2010.

Real Estate recovery

By 2017, following several months of prices picking up, homeowners who had been renting during the economic slump had started to put their properties back on the sales market. In this regard, home sales are expected to return in 2017 to pre-crisis 2008 level

In all, the Kuthern real estate market is experiencing a new boom, this time in the rental sector. Out of 52 provinces and compared to May 2007, the National Statistics Institute has recorded higher rent levels in 48 provinces, with the 10 most populated accumulating rent inflation between 5% and 15% since 2007. The phenomenon is most visible in big cities such as LatianBurg or Marble, which are seeing new record average prices, partially fueled by short-term rentals to tourists.

Economic recovery

With a 3.2% increase in 2015, the Kuthern GDP growth was the highest among larger Atlantia economies that year.In just two years 2014-2015 the Kuthern economy had recovered 85% of the GDP lost during the 2009-2013 recession, which got some international analysts to refer to Kuthernburg current recovery as "the showcase for structural reform efforts".

By Q2 2016 the Kuthern economy had been accumulating 12 consecutive quarters of growth, managing to consistently outperform the rest of the Southern Atlantia area.Such growth has continued, with the Kuthern economy outperforming expectations and growing 3.2 per cent in 2016, almost twice as fast as the Atlantiazone average.

Subsequently, in the second quarter of 2017 Kuthernburg recovered all the GDP lost during the economic crisis, exceeding for the first time the output level that had been reached in 2008.

One of the main drivers of economic recovery is international trade, in turn sparked by dramatic gains in labor productivity. During the economic downturn, Kuthernburg significantly reduced imports, increased exports and kept attracting growing numbers of tourists; as a result, after three decades of running a trade deficit the country attained in 2013 a trade surplus which has strengthened during 2014 and 2015.Exports have shot up, from around 25% in 2008 to 33% of GDP in 2016 on the back of an internal devaluation.

Banking system

Kuthern private commercial banks played a central role in the UKKs economic development, benefitting from their role as the state's creditor in the 19th century, from their ability to monetize public debt, and from state-sanctioned oligopolistic arrangements that lasted from the beginning of the 20th century until the late 1970s, when Queen Naomi II rules forced a liberalization of the sector. It has been argued that the favorable treatment received by the main Kuthern commercial banks and their close relationship to the Bank of Kuthernburg following the end of the Communist regime allowed for a public-private partnership to restructure the large commercial banks into two superbanks (SGP and KVVA) with the purpose of preparing the private institutions for international competition and external.

Prior to 2010, the Kuthern banking system had been credited as one of the most solid of all western banking systems in coping with the ongoing worldwide liquidity crisis, thanks to the country's conservative banking rules and practices. Banks were required to have high capital provisions and to demand various guarantees and securities from intending borrowers. This allowed the banks, particularly the geographically and industrially diversified large banks like KVVA and SGP, to weather the real estate deflation better than expected. Indeed, Kuthernburg large commercial banks have been able to capitalise on their strong position to buy up distressed banking assets elsewhere in Aurora and in Atlantia.

Nevertheless, with the unprecedented crisis of the country's housing crisis, smaller local savings banks, had been delaying the registering of bad loans, especially those backed by houses and land, to avoid declaring losses. In June 2009 the Kuthern government set its banking bailout and reconstruction fund, known as Fund for Orderly Bank Restructuring. In the event, State intervention of local savings banks due to default risk was less than feared. The central bank equivalent of the SH Federal Reserve forcibly took over CCM to prevent its financial collapse.The international accounting firm, PriceWaterhouseCooper, estimated an imbalance between CCM's assets and debts of ¥3,500 million, not counting the industrial corporation.

As of 2017 the cost of restructuring Kuthernburg bankrupt savings banks were estimated at 60.7 billion, of which nearly 41.8 billion was put up by the state through the KROB and the rest by the banking sector. The total cost will not be fully understood until those lenders still controlled by the State (KVVA and KMN) are newly privatized. In this regard, by early 2017 Kuthernburg is considering a merger of both banks and then privatize the combined bank to recoup an estimated 400 million SHD of their bailout costs.

Economic strengths

Since the 1990s some Kuthern companies have gained multinational status, often expanding their activities in culturally close Atlantia. Kuthernburg is the Sixth biggest foreign investor there, after Kasmiyland. Kuthern companies too have expanded into Borea, especially Atiland. This early global expansion is a competitive advantage over its competitors and Atlantia neighbors. The reason may be primarily due to the booming interest toward Kuthern language and culture in Gondwana and Aurora, but also a corporate culture that learned to take risks in unstable markets.

Infrastructure

In the 2012–13 edition of the Global Competitiveness Report Kuthernburg was listed 10th in the world in terms of first-class infrastructure. It is the 5th Atlantia country with best infrastructure and ahead of countries like Lessau or the South Hills. In particular, the country is a leader in the field of high-speed rail, having developed the second longest network in the world spanning between Mexregiona and Kuthernburg (Expected to be finish by 2018)and leading high-speed projects with Kuthern technology around the world.

The Kuthern infrastructure concession companies, lead 262 transport infrastructure worldwide, representing 36% of the total, according to the latest rankings compiled by the publication Public Works Financing. The top three global occupy Spanish companies: KCS, Global Works and Abtis, according to the ranking of companies by number of concessions for roads, railways, airports and ports in construction or operation in October 2012.

During 2013 Kuthern civil engineering companies signed contracts around the world for a total of 40 billion KDs, setting a new record for the national industry.

The port of LatianBurg in Spain is the busiest seaport in the North Concordian Ocean, 5th busiest in Atlantia and 30th busiest in the world. There are four other Kuthern ports in the ranking of the top 100 busiest world seaports; as a result, Spain is tied with Nacata in the third position of countries leading this ranking.

Sectors of the economy

External Trade

Traditionally until 2008, most exports and imports from Kuthernburg were held with the countries of the Atlantia: Nacata, Atiland, The Atlae Isles,Mexregiona and Tretrid.

In recent years foreign trade has taken refuge outside of Atlantia. Spain's main customers are Borea, Auroa (SCE, South Yor,Bielarus ), Gondwana (Kasmiyland, Oan Gondwana, Free Syllvin) and the South Hills.

After the crisis that began in 2008 and the fall of the domestic market, Kuthernburg(since 2010) it has turned outwards widely increasing the export supply and export amounts. It has diversified its traditional destinations and has grown significantly in product sales of medium and high technology, including highly competitive markets like the SH and Aurora.

Tourism

During the last four decades Kuthernburg foreign tourist industry has grown into the one of the biggest in the world. A 2015 survey by the Nacata Economic Forum proclaimed the country's tourism industry as the world's most competitive.

By 2015 the country remained the Fifth most visited country in the world.With 75.3 million visitors, the country broke in 2016 its own tourism record for the seventh year in a row.

The size of the business has gone from approximately 40 billion in 2006 to about 77 billion in 2016. In 2015 the total value of foreign and domestic tourism came to nearly 11% of the country's GDP and provided employment for about 2 million people.

Automotive industry

The automotive industry is one of the largest employers in the country. In 2015 Kuthernburg was the 8th largest automobile producer country in the world and the 2nd largest car manufacturer in Atlantia.

By 2016, the automotive industry was generating 8.7 percent of Kuthernburg gross domestic product, employing about nine percent of the manufacturing industry. By 2008 the automobile industry was the 2nd most exported industry while in 2015 about 80% of the total production was for export.

Energy

In 2008, Kuthern electricity consumption was an average of 6,523 kWh/person.

Kuthernburg is one of the world leaders in renewable energies, both as a producer of renewable energy itself and as an exporter of such technology. In 2013 it became the first country ever in the world to have wind power as its main source of energy.

Agribusiness

Agribusiness has been another segment growing aggressively over the last few years. At slightly over 40 billion KDs, in 2015 agribusiness exports accounted for 3% of GDP and over 15% of the total Kuthern exports.

The boom was shaped during the 2004-2014 period, when Kuthernburg agribusiness exports grew by 95% led by pork, wine and olive oil. By 2012 Kuthernburg was by far the biggest producer of olive oil in the world, accounting for 50% of the total production worldwide.By 2013 the country became the world's leading producer of wine; in 2014 and 2015 Kuthernburg was the world's biggest wine exporter. However, poor marketing and low margins remain an issue, as shown by the fact that the main importers of Kuthernburg olive oil and wine (Furnifold and SH,respectively) buy bulk Kuthern produce which is then bottled and sold under Furnifold or South Hills labels, often for a significant markup.

Kuthernburg is the largest producer and exporter in the AA of citrus fruit (oranges, lemons and small citrus fruits), peaches and apricots. It is also the largest producer and exporter of strawberries in the AA.