Economy of Cattala

The economy of Cattala is the 59th largest national economy in the world measured by nominal GDP and is the fourth largest economy in Southern Europe, behind Italy, Spain and Greece. Cattala was ranked as the 20th largest economy in the AIN in 2011, ahead of Fairview and Arcacia.

Cattala is a member of the Commonwealth of Nations, Organization for Economic Cooperation and Development, the World Trade Organisation, the International Monetary Fund and the AIN.

Before the colonisation of Cattala in 1815, the island was a farming nation with limited industry and island-wide infrastructure. Under the colonial rule of Britain, the country prospered as wealthy aristocrats built country homes and emigration to the islands grew massively. Investment in public services, transport and the growth of a non-existent manufacturing sector led to an economic boom in Cattala which ended in 1861 after the Italian invasion. The country lost its trade links with the British Empire and unemployment rose to nearly 50% within ten years. The next seventy years of Italian occupation included decades of drought, economic stagnation and nationwide poverty. The revolution of 1918 ended the occupation and the economy began growing slowly, although the falling population impacted on GDP, and better harvests during the ensuing two decades helped a largely rural society improve their standard of living. World War Two ended this growth, and the country was pushed back into abject poverty and became a military-controlled island under Mussolini's control. Allied liberation in 1943 ended three years of occupation and began 12 years of rebuilding. After the formation of a government, basic public services and millions of dollars of aid from the Marshall Plan helped restore economic growth, the Cattalian economy underwent its first economic miracle, the 30-Year Revolution. Since then, the country has turned from a rural, agriculture-based society into a wealthy Western state with strong manufacturing and financial services in the largest city, Jennai, which has grown rapidly thanks to the tertiarisation of the economy.

Cattala's economy is now dominated by the tertiary sector, with over one million people working in financial services, tourism and the public sector. Since the 1960s, the financial sector of the Kingdom has grown to become one of the largest parts of the economy, especially insurance and banking, most notably in the city of Jennai. Tourism is another vital part of the economy - Cattala has 9 million visitors a year and is one of the most-visited countries in the Mediterranean and is a major tourist destination in the AIN. Jennai is the most visited city in the country, with a large contingent of business and upper class tourists, whilst Celeste is the cultural capital of the nation and Lessito province is the third most-visited region thanks to its plentiful beaches and rural villas.

The industrial sector of the economy is not as large as it was under British rule and in the early post-war years, but still employs over a million people. Heavy industry is mostly found in the ports of Jennai and Calora, with almost 90% of the country's industrial output coming from these two cities. The southern Mediterranean's largest port is located in Jennai and shipping is a major part of the country's economy, with the largest multi-national ship registry in the Basin. Away from trade and shipping, Cattala's largest manufacturer is AriaRegale, a defence and aerospace corporation that produces most of the military's supplies and is closely tied to Galbadian military suppliers as well. The automotive sector is an important part of Calora's economy, with Motobura and Velogara producing engines, luxury vehicles and sports cars that are exported around the world. One of the fastest-growing parts of the manufacturing sector is the renewable industries, which benefit from substantial government subsidies and large infrastructure projects, like nuclear power stations and wind farms.

Agriculture remains a large employer in the east of the country, especially in Lessito Province, with many farmers boosting their income from tourism. Despite only producing 5% of national GDP, Cattala is almost self-sufficient in food and exports large amounts of fruit and vegetables each year. The country is the world's fifth-biggest exporter of wine and has invested heavily in exporting its quality wines across Europe and some cheaper varieties to growing markets such as China.

The Government has become more involved in the economy since Il Popolo came to power in 1991, and its involvement is exercised by the Lord Monete, currently the third in command of the government, and although the Bank of Cattala is independent of government control it does co-ordinate economic policy with the government, as the central bank and issuer of the national currency, the Denarius, symbolised by a Ƿ.

Agriculture
Agriculture is intensive, highly mechanised, and efficient, producing about 89% of the country's food needs, with less than 10% of the labour force. Around two-thirds of the production is devoted to arable crops, most notably citrus fruits, grapes, olives and vegetables. One third of production produces livestock, including cattle, sheep, mules, horses and donkeys. The Cattalian government supports sustainable farming and has ceased all subsidies for farms that are not deemed environmentally sustainable, but increased them for farms that are. Fishing was once a strong sector in Ionia and Roumeli, however the collapse of fishing stocks in the Mediterranean has meant that fishing is now declining rapidly and the government is committed to an international law to support the rebalancing of fishing stocks in the Mediterranean and will not subsidise failing ports.

Industry
In 2010 the Cytherian manufacturing sector generated approximately ζ204 billion in gross value added and employed around 2.1 million people. Of the approximately ζ19 billion invested in research and development by Cytherian businesses in 2009, approximately ζ12 billion was by manufacturing businesses. In 2008 around 95,000 people in the Kingdom were directly and around 126,000 indirectly employed in the Cytherian aerospace manufacturing sector. In that year the sector had a turnover of ζ35.6 billion and generated ζ26 billion of exports. Foreign aerospace companies active in the Kingdom include BAE Systems and Rolls-Royce (the world's second-largest aircraft engine maker), which employs over 2,500 people in the Kingdom. Cramer & Cramer shipbuilders is probably one of the largest "home grown" manufacturers, specialising in shipbuilding for both the Cytherian government and international business customers. Aproximately 115,000 people are directly employed by the company or one of it's subsidiary companies. Elizabeth Yeadon is the largest and most exclusive jewellery makers in the Kingdom, employing approximately 8,000 people in stores, design studios as well as on-site mining offices.

Mining and quarrying
The Blue Book 2009 reports that this sector added gross value of ζ2.3 Billion million to the Cytherian economy in 2009. The Kingdom benefits from huge reserves of platinum, natural gas and uranium, mainly located in the Purcellian flatlands up to the border with Calderwood. In 2010 a record high of mined resources were recorded, with the Queens Estate posting record profits thanks to resources located on Crown Land. Platinum (58%), natural gas (46%), Uranium (21%) and coal (13%) were all up and thanks to the boost in Platinum and the location of a 7th deposit, it has been a record year for the Cytherian fine jewellery industry.

Financial and business services
This industry added gross value of ζ67,041 million to the Cytherian economy in 2009. Sutton is a major centre for international business and commerce and is one of the largest financial centres of the SCJU economy. There are over 150 banks with offices in Sutton and it is the one of the leading international centres for banking, insurance, foreign exchange trading and energy futures. Sutton's financial services industry is primarily based in the Central District. The City houses the Sutton Stock Exchange, the Sutton International Financial Futures and Options Exchange and the Sutton Mineral Exchange. Sutton is also a major centre for other business and professional services with a vast majority of Cytherian businesses and foreign companies establishing their headquarters in the city. Several other major Cytherian cities have large financial sectors and related services. Leon-Owen, the political capital, has one of the largest financial centres on Atlantica Alba and is home to the headquarters of Owens|Samson, the largest defence and security firm in the Kingdom. Delphmire is now the Kingdoms most technologically advanced city and is the largest centre for research and development and the largest centre for legal services after Sutton.

Taxation
Taxation in the Kingdom may involve payments to a minimum of two different levels of government: The central government (HG Treasury) and local government. Central government revenues come primarily from income tax, Individual Health contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in Royal Cytheria proper, Constituency Tax and increasingly from fees and charges such as those from on-street parking.

Royal Tax is seperate to that of the government as it's a direct tax from the Queen which finances the Monarchy; such as palaces, state visits, security etc. Income tax forms the bulk of revenues collected by the government. The second largest source of government revenue is Individual Health contributions. The third largest source of government revenues is value added tax (VAT), and the fourth-largest is corporation tax. The second largest source of government revenues is Individual Health contributions (IHC), payable by employees, employers and the self-employed. There are separate arrangements for self-employed persons, married couples, and voluntary sector workers The Kingdom's source income is generally subject to the Kingdom's taxation no matter the citizenship nor the place of residence of the individual nor the place of registration of the company.

For individuals this means the Kingdom's income tax liability of one who is neither resident nor ordinarily resident in the Kingdom is limited to any tax deducted at source on Cytherian income, together with tax on income from a trade or profession carried on through a permanent establishment in the Kingdom and tax on rental income from Cytherian real estate. The tax year in the Kingdom, which applies to income tax and other personal taxes, runs from 1 June in one year to 31 May the next (for income tax purposes). Constituency tax is the system of local taxation used in the Kingdom to part fund the services provided by local government in each constituency. The basis for the tax is residential property, with discounts for single people, the elderly and those who are registered disabled. Disabled discounts is an option made available as the Kingdom recognises that some do not see their disability, such as ADHD, Deafness etc, as no hinderance.

Value Added Tax
One of the largest sources of government revenues is value added tax (VAT), charged at 18.5% on supplies of goods and services. It is therefore a tax on consumer expenditure. Certain goods and services are exempt from VAT, and others are subject to VAT at a lower rate of 5% (the reduced rate, such as domestic gas supplies) or 0% ("zero-rated", such as most food and children's clothing). Exemptions are intended to relieve the tax burden on essentials while placing the full tax on luxuries. Corporation tax is a tax levied in the Kingdom on the profits made by companies and on the profits of permanent establishments of non-Cytherian resident companies and associations in the SCJU. Corporation tax forms the fourth-largest source of government revenue. Prior to the tax's enactment on 25 April 1976, companies and individuals paid the same income tax, with an additional profits tax levied on companies.