The Western IslesBoard

Contents
- Overview
- Currency
- Growth and the GDP
- Economy Sector
- Taxation
- Inflation

Overview

Members states of the United Commonwealths are among the world's wealthiest and most successful economies. They have a common economic and social model that combines a market-based mixed economy with a comprehensive welfare state and multi-level collective bargaining. The Alteran model is characterized by relatively small wage gaps, high employment, high taxation, accessible education and social security, and strong societal cohesion and sense of community.

The main industrial sectors of the United Commonwealths' economy are services, manufacturing, energy, and agriculture. Services account for the largest share of GDP and employment in all five countries, especially in areas such as finance, trade, transport, health care, education, and public administration. Manufacturing is also a significant contributor to GDP and exports, with industries such as machinery, electronics, chemicals, pharmaceuticals, vehicles, and food processing. Energy is another important sector, especially in western territories, which have abundant natural resources such as oil, gas, hydroelectricity, and geothermal power. Agriculture is a relatively small sector in terms of GDP and employment, but it plays a vital role in ensuring food security and rural development.

The unemployment rate in the United Commonwealths remains steadily low - but can be affected by seasons of extreme weather or economic turmoil. However, it generally remains below the Argus average due to active labour market policies that aim to facilitate job creation and job matching, as well as to provide income support and training for the unemployed. The United Commonwealths also have high labour force participation rates, especially among women and older workers.

The taxation levels in the United Commonwealths countries are among the lowest in the world. They reflect the low overall public spending; but invests heavily in the mechanisms then enable a strong free-market; namely infrastructure, defence and security, and the Universal Basic Income. These systems of economic transfers that aim to reduce poverty and inequality, promote social mobility and inclusion, and enhance human capital and well-being. The UC tax systems are based on the principles of progressivity, efficiency, simplicity, and transparency. They rely mainly on income taxes (both personal and corporate), value-added taxes (VAT), social security contributions, and environmental taxes.

Currency

In Altera, the local currency is known as the Puint and is identified by its unique symbol; the Puint (₽). The Puint is widely considered a stable currency, with $1 IAD approximately valued at ₽1.2 UCP.

‣ $1 IAD = ₽1.2 UCP

Growth and the GDP

Altera has enjoyed consistent growth in most areas of its economy for the past several decades. In 2019, the country's economy grew by 1.7% and is expected to exceed 2.2% growth by the end of 2020.

‣ ▲ 1.7% (2019)
‣ ▲ 2.2% (2020)
‣ ▼ 0.2% (2021)
‣ ▼ 0.1% (2022)
‣ ▲ 1.1% (2023)

Gross Domestic Product, more commonly referred to as GDP, is a standard method of measuring a nation's wealth. Altera's GDP, as of 2020, was measure at ₽1,145 billion (approximately $1,375 billion), making it one of the consistently strongest economies in the region.

‣ ₽1,145 B ($1,375 B)

Economy by Sector

Altera is well regarded as a balanced economy, with a wide variety of industries, sectors and organisations operating within the country.

‣ 76.8% Services - Retail, Banking, E-Commerce
‣ 18.7% Industry - Manufacturing, Assembly, Mineral Extraction and Refinement
‣ 3.0% Science/Education - Higher Learning Institutes, Research and Development
‣ 2.5% Agriculture - Diary, Crop Growth, Food Processing ...

Taxation

Employed citizens and civilians are all granted a tax-free allowance. This means that they do not pay any income tax on the first ₽20,000 ($24,000 IAD) they earn.

Studies constantly show that the tax-free allownace - coupled with the Universal Basic Income is the best method of stimulating financial growth.

Altera has some of the lowest tax rates within Northern Argus and, arguably, in the whole region. Citizens and civilians only pay:

‣ 5.0% on incomes upto ₽30,000 ($36,000 IAD)
‣ 8.0% on incomes upto ₽60,000 ($48,000 IAD)
‣ 12.5% on incomes upto ₽100,000 ($120,000 IAD)
‣ 17.5% on incomes above ₽100,000 ($120,000 IAD)

To keep Altera's high commercial success, it is important that business keep costs down. Altera's low business rates enable for a continued growth of jobs and prosperity.

‣ 5.0% on profits upto ₽250,000 ($300,000 IAD)
‣ 10.0% on profits upto ₽1,000,000 ($1,200,000 IAD)
‣ 12.5% on profits above ₽1,000,000 ($1,200,000 IAD)

Inflation

It is difficult to please everyone regarding inflation rates. Some banks and businesses like high inflation; whereas the average consumer wants low inflation.

Altera's Central Bank helps to monitor and regulate the rate of inflation, keeping it at a consistent 0.4% over the last six months of 2019.

‣ ▲ 0.4% (2019)
‣ ▲ 12.2% (2020)
‣ ▼ 9.5% (2021)
‣ ▼ 2.9% (2022)
‣ ▼ 1.0% (2023)