|Economy of Valruzia|
|Nowogards's Banking District - Śródmieście (Nowogard - Downtown)|
|Currency||Valruzian Peso (VPO)|
₱ 1 Peso = 100 groszy
|Fiscal Year||Calendar Year|
|Trade Organizations||Seleyan Union|
|GDP|| 493 231 839 250 LOD|
3 236 429 391 405 VPO (4746)
|GDP per|| 11 296 LOD|
74 101 VPO (4746)
|GDP growth|| 6.7% (4745)|
est. 6.2% (4746)
|GDP per sector||Services: 64.2%|
|Inflation|| 1.9% (4746)|
|Labor force||25.4 million|
|Main Industries||Finances & Banking|
Oil and Gas
|Public Debt||201,4% of the GDP|
TBU VPO (-)
TBU VPO (-)
|Foreign Reserves|| 1.3 trillion LOD|
8,06 trillon VPO
|Credit Rating||C&M Global - AA|
The economy of Valruzia is one of the fastest-growing economies in Seleya and the whole of Terra. Since 4244 and adaptation of the new Constitution, Valruzia has pursued a stable and inclusive economic growth and economic evolution which successfully turned the country from an underdeveloped country with the economy based on agriculture into a fast-growing and competitive country with the economy based on services and advanced industry. The constitution indirectly enforces a social market economy. That combined with the discovery of numerous rich oil reservoirs in Valruzia and its territorial waters caused tremendous effects of Valruzian economy. Since then Valruzia remains the largest extractor of crude oil, with more than 15 million barrels of oil extracted daily. During the period from 4244 to 4259, the Valruzian economy was growing with an average growth rate of 7% annually. The growth of the Valruzian economy in that period is considered as one of the most impressive economic performance in Seleya.
Valruzian economy is classified as a high-income economy. The largest component of its economy is the service sector which makes up 65% of the total GDP. It is followed by industry which sums up to 31.9% and agriculture which makes up 3.9%. It quickly became one of the biggest exporters of goods and service providers in Terra. The top Valruzian export products are petroleum, crude oil, natural gas, passenger and cargo vessels, wood (raw and processed), vehicles, and furniture.
In 4259, the General Statistics Office reported that the economic growth slowed to ca. 3.5% annually but that result still puts Valruzia way ahead of the rest countries in Seleya. It is expected that in future years the growth rate will rise due to increased exploration of newly discovered oil reservoirs in Ruzian Voivodeship.
Valruzian government operates the sole stock exchange in the country Nowogard Stock Exchange (NGPW) which is located in Abramow District of Nowogard. NGPW is a joint-stock company wholly funded by the State Treasury which is the owner of 100% of shares.
- 1 Economic Reforms
- 2 Economy Sectors
- 3 Infrastructure
- 4 Corporate Law
Valruzia has a developed social market economy, the largest in Seleya and third largest globally by nominal GDP and GDP PPP. Most of the Terra knows Valruuzia because of its manufacturing sector which produces some of the best quality products. Currently, the country is the largest exporter of goods and services. Valruzian economy remains relatively stable and most of economists believe that its economy is less likely to be affected by a financial crisis. Valruzia is home to many of the largest publically listed companies by revenue globally.
The services sector generates roughly 64% of gross domestic product (GDP) of Valruzia, and the sector employed 67.5% of the workforce. Subcomponents of the services sector are financial and banking (39%), real estate (21%), and other business activities such as trade, transportation, and tourism, and air passenger traffic and media (40%).
Valruzia's consumer spending is stable because of the low level of private debt and relatively low unemployment. The country is Seleya's largest consumer goods producer and market in terms of purchasing power. Located in the center-north of Seleya, equipped with needed infrastructure, Valruzia has the vantage position to access all of the Seleyan continent and other consumer markets. Valruzians prefer value and established brands, most of which the diverse consumer industries provide
Valruzia enjoys the freedom of media and beliefs and that fact is reflected in the presence of numerous media providers and newspapers. The government of Valruzia is the owner and operator of one national station in both radio and television sectors. Valruzia Television (Telewizja Walruzja, WTV) which operates two channels: WTV1 and WTV2 is the national TV station which serves educational and informational purposes. Radio Valruzia (Radio Walruzja, RW) is the national radio station. The station operates one single nationwide channel and numerous regional channels. Significant private media corporations are MTI Group, ITR, and Fokus which altogether have 53% of media market share.
State Treasury is the founder and de iure the first owner of the flag carrier of Valruzia LOT Group which initially started as just LOT Valruzian Airlines but were further expanded and became one of the largest airlines in Seleya operating a fleet of over 300 planes. De facto, the airline operated under its own management and is a fully for-profit company, making it more competitive than other governmental funded airlines. Władysław Furman, the first CEO of LOT Group is considered as the man behind LOT success in the airline industry. LOT is among the airlines with the most extensive range of services and those with the biggest amount of destinations. The LOT Group was acquired by Szwarzentel Investments which bought the company for 13 billion from the State Treasury.
Machinery, Automotive, and Aviation Industry
The machinery and equipment sector drives the high-tech nation and leads to innovation like robotics. Valruzia has proven engineering tradition and continues to offer modern manufacturing solutions. The machinery sector has more than 150.000 employees and generates around LOD 180 billion annually. Valruzia leads the global automotive industry in both production and sales. The country is recognized worldwide and appreciated thanks to Valruzian products, most of them being manufactured by Bonning Group under the brands BNG, BFS, or FSM known for excellent engineering, innovation, safety, and designs. The country has developed quality research and invested in a qualified workforce and infrastructure responsible for a peerless automotive industry for the last 200 years.
The aviation sector in Valruzia is also on a constant rise with the Reglair Aircraft Factory being the Terra-wide symbol of Valruzia. Reglair is the largest aircraft manufacturer in Terra with its aircraft flying in almost all airlines. The airline industry generates, on average, LOD 350 billion per year. Reglair is expected to manufacture more than 19.000 planes within the next 25 years.
Industry and construction make up ca. 31% of GDP with oil extraction and petroleum processing as the biggest component of Valruzian industry. The industry sector employs 25% of the workforce. Valruzia excels in the extraction and refining of crude oil, extraction of natural gas, production of cargo and passenger vessels, and chemicals. With the extraction of 13,45 million oil barrels daily, it is one of the largest extractors of oil on Terra, and with 15% market share in shipbuilding, it is the second vessel producer. Despite around 75% of the industrial sector is in the hands of the state, small, and medium-sized companies have a strong position on the Valruzian market.
Chemical and Medical Industry
The Valruzian chemical industry leads in Seleya in terms of sales within Seleya and exports to other continents. Valruzia has well-developed chemical research and development infrastructure. The country's education system also produces quality graduates ready to work and offers investors a fertile and market-ready environment for chemical products. Valruzian chemical industry generates, on average, 70 billion in revenues. Valruzia exporter 70% of its chemical products to Seleya, 18% to Artania, 5% to Majatra, and 7% to Dovani and Keris. The chemical industry employs 120 thousand people all across Valruzia. Medical equipment and pharmaceutical goods are among the top Valruzian exports and give the country billions of Lodamun dollars. The commodities include medical supplies, life-saving machinery, and other hospital equipment.
Valruzia is among the countries which extract the largest amounts of both bituminous coal and lignite which remain the main source of energy in Valruzia despite the government's efforts to produce most of the energy by nuclear fission. Coal has always been an important part of the Valruzian economy, on which it is based since the era of industrialization. Valruzia is the largest extractor of lignite in the region and 5th largest extractor of bituminous coal in Terra. The government-owned holding [[Valruzian Energy Group|ENERWAL]] (Walruzyjska Grupa Energetyczna) which associates both public and private energy producers and providers are currently in control of most major mining sites. The largest is located near the border with Baltusia in the south-eastern part of Ruzian Voivodeship. Valruzia extracts ca. 314 million metric tonnes of lignite annually, and 823 million tonnes of bituminous coal.
Agriculture and Forestry
Agriculture and Forestry create 3.9% of the total GDP and employ 7.5% of the workforce. The agriculture sector is overwhelmingly productive in Valruzia and fulfills 95% of the nation's nutritional needs, solely by domestic production. Agriculture varies in different voivodeship. In Valusian Voivodeship the agriculture is based on intensive farming with relatively little fragmentation of farms and the presence of big cooperatives which associate numerous landowners and the crop produced is preconditioned by the market demand. In Chynberg and Ruzian Voivodeship the agriculture is based on extensive farming and relatively high fragmentation of farms and landowners determine crops they grow on their own.
The territory of Valruzia is covered by forests by 45%. The forestry industry provides three-quarters of the domestic demand for raw and processed wood.
Valruzia in recent years became the Terra's largest energy consumer, consuming 945 terawatt-hours of electricity in 4259. Most of the energy consumed in Valruzia is produced domestically. The government of Valruzia actively promotes environmental preservation and implemented a series of pollution restrictions and requires most of the energy to be produced by nuclear power plants. However, in 4260 just 34.5% of the energy produced in Valruzia was produced in nuclear power plants. The majority of the energy was produced from fossil fuels: coal (33%) and natural gas (21%). The government's undertaking and environment preservation measures resulted in an increase in the use of renewable sources of energy. 11,5% of the energy produced in Valruzia is produced by solar, wind, and geothermal power plants. The companies responsible for energy production in Valruzia are Enerwal - operator of conventional power plants and those using renewable sources of energy, Walatom - operator of nuclear power plants.
- See also: Transport in Valruzia
Due to its vast territory, the density of road and railroad network is relatively lower than in other countries. Despite that Valruzia is home to numerous communication routes that connect the north and south Seleyan countries. The extensive motorway network (Autostrada) is the third largest in Terra in its total length. In recent years the national government implemented a series of designated sections of the motorways which have no blanket speed limit.
Valruzia has also a relatively large network of high-speed trains both passenger and cargo, connecting all major Vlaruzian cities and neighboring countries. The train maximum speed varies from 190 km/h and 340 km/h depending on the geography of the region.
Valruzia have also an extensive network of both international, and domestic airports: the biggest is located in the country capital - Nowogard Ignanski Airport. Other important airports are Brzansk - Olimpia Airport, Hel International Airport, Gryfitow - Topolin Airport. All of the airports within the country are operated and maintained by a single state-owned company SCE "Airports" (Przedsiębiorstwo Państwowe Porty Lotnicze) which is funded by the State Treasury.
Valruzia remains a strongly centralized country with relatively high government interference in the country's economy and its corporate affairs. The government of Valruzia remains the de-facto owner of most of the industry in the country, controlling it through various agencies and a public entity called State Treasury (Skarb Państwa) which is the de-iure owner of all industry. However, the government allows for small and medium-sized companies to operate, and when the company is considered as big and important for the nation's economy the State Treasury steps in and nationalizes at least 25% of the company making it impossible to take any measures which would cause damage to the economy. In the services sector, the law in Valruzia is relatively less invasive and allows for the operation of private entities with limited government interference. However Valruzian Government operates various service providing companies which are important for the country's economy: LOT Valruzian Airlines, WKP Valruzian State Railway, WKN Volantis, SCE "Airports".
Business Entities in Valruzia
Valruzian corporate law allows and defines various types of business entities that can provide services and operate in the industry sector. The national law defines legal forms of business entities (formy organizacyjno-prawne podmiotów gospodarczych)
Business entities in Valruzia can be registered as:
- • Partnership - (Spółka osobowa) is usually a for-profit entity which functioning is based on personal relations with other associates, who run their own company under the partnership.
- • General Partnership - (Spółka jawna, Sp.j.) type of entity which is not recognized as a legal entity, but has a certain capacity to undertake legal actions. It has its own property which is a total value of contributions of its owners both financial and non-material, as well as every property purchased by it during the time of its existence.
- • Limited Liability Partnership - (Spółka partnerska, Sp.p.) entity with full legal recognition which consists of two of multiple associates who have decided to associate in order to provide service with their free profession or to provide various services (manufacturing, retail etc.) under a single brand.
- • Limited Company - (Spółka kapitałowa) is a business entity which is characterized by the possession of the seed capital, legal recognition, certain property which is sperate from the property of associates and shareholders.
- • Limited Liability Company - (Spółka z ograniczoną odpowiedzialnością, Sp. z o.o.) - is a business entity in which the liability of the shareholders which are not members of the management board of the company is limited by their financial input to the company.
- • Joint-Stock Company - (Spółka akcyjna, S.A.) - is a business entity in which shareholders are not held liable for the company's obligation but at the same time, they cannot change the company's profile. The only risk they take is the loss of their financial input.
Special types of business entities include:
- • State Enterprise - (Przedsiębiostwo Państwowe)
- • Voluntary Association - (Stowarzyszenie)
- • Cooperative - (Spółdzielnia)
- • Foundation - (Fundacja)
Special Economic Zones
In July 4275, the Sejm passed a law that established and regulated the functioning of Special Economic Zones (val.: Specjalna Strefa Ekonomiczna) within the Republic of Valruzia. It gives foreign and domestic investors special conditions under which they can invest in existing, or establish new enterprises. The most important convenience is the corporate tax relief which is in force during the first 5 years of the company's operation and can be prolonged.
Currently, there are 5 Special Economic Zones in Valruzia:
- Brzańsko-Leska Specjalna Strefa Ekonomiczna (Brzansk-Lesko Special Economic Zone, BLSSE) - established for a period of 99 years with the possibility of prolongation or termination.
- Stołeczna Specjalna Strefa Ekonomiczna (Capital District Special Economic Zone, SSSE) - established for a period of 99 years with the possibility of prolongation or termination.
- Roweńska Specjalna Strefa Ekonomiczna (Rowa Special Economic Zone, RSSE) - established for a period of 99 years with the possibility of prolongation or termination.
- Trójmieska Specjalna Strefa Ekonomiczna (Tricity Special Economic Zone, TSSE) - established for a period of 99 years with the possibility of prolongation or termination.
- Południoworuzyjska Specjalna Strefa Ekonomiczna (South Ruzian Special Economic Zone, PSSE) - established for a period of 99 years with the possibility of prolongation or termination.