Year1Economic Forecast

Last year Econland's GDP was US$100 billion, making the economy roughly the size of Puerto Rico or Hungary. Econland is affected by global economic conditions, but it is too small to impact the global economy in return. Exports and imports both account for 25% of GDP.

Last year, the world economy did well and Econland experienced solid economic growth (2.4%). Unemployment is low (5%), and inflation (at 2%) and the budget deficit (2.8% of GDP) are under control. Total government debt is 60% of GDP.

The outlook for next year is moderately positive, with the International Monetary Fund (IMF) predicting world economic growth of2.4%. The Consumer Confidence Index is at its long-term average of 100.

Forecast World Economic Growth %2.4

Econland Consumer Confidence Index

The Consumer Confidence Index is determined by the world economic growth forecast as well as by Econland's performance on GDP growth and unemployment last year.

100

Decisions

Interest Rate

The Interest rate impacts Consumption, Investment and the Exchange Rate (which in turn affects Imports and Exports)

3.0%

Last year's interest rate:3%

Income Tax Rate

The Income Tax rate impacts Consumption and Government Revenues.

24%

Last year's income tax rate:24%

Corporate Tax Rate

The Corporate Tax Rate impacts Government Revenues and the level of Investment (which in turn affects the Capital Stock and Productivity Growth).

30%

Last year's corporate tax rate:30%

Government Expenditure (billions)

Government Expenditure impacts the level of GDP and the Budget Deficit.

Expenditure should be between 0-1000 billion

Last year's government expenditure (billions):$30