Economy of Kivu
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| Currency | Kivuian Credit |
|---|---|
| $2.5 Kivuian Credits: ¢1 | |
| May 1st - April 30th | |
| Statistics | |
| Population | 62.5 million |
| GDP | ¢2,572,500,000,000 |
| GDP rank | 10th |
GDP growth | 8.6% (2020) |
GDP per capita | ¢41,160 |
GDP per capita rank | 10th |
Population below poverty line | 10.2% (2020) |
| 0.863 | |
| Unemployment | 5.7% |
Main industries | Tourism, Manufacturing, Agriculture, Technology, and Entertainment |
| External | |
Export goods | Lumber, Ships, Foodstuffs, Electronics, Aircraft |
All values, unless otherwise stated, are in Quebecshirite Credits (₵). | |
The Kivuian economy is classified by most economists as a mixed economy, a prosperous capitalist welfare state, that features a (mostly) free market activity. Kivu has a per capita output that is the sixth-highest GDP per capita among Erosian countries, and the tenth-highest in the world. The largest sector of the economy is the service sector which accounts for about 46.4% of GDP, followed by the manufacturing sector (31.2%), and the agriculture sector (22.4%).
Around 75% of Kivu’s GDP is generated in cities, with the largest b producer of GDP being Buchthafen. Most industries, businesses and financial institutions are concentrated in coastal and central Kivu, particularly in the X and X metropolitan areas. X is the economic capital of Kivu.
Percentage of Kivuan GDP by Industry
Percentage of Kivuan GDP by Sector
Tourism, forestry, foodstuff, manufacturing, electronics, and fishing are the leading sectors of the Kivuian economy. Kivu’s most important economic sector is tourism.
The welfare state was created in the mid 1970s. In the early 2000s, taxes were raised to expand the welfare state. This combined with a series of successive social reforms transformed the country into one of the most equal and developed on Terraconserva. Kivu consistently ranks near the top of world rankings for health, literacy and Human Development. Kivu has the sixth-highest Human Development Index (HDI) as well. It is judged by most to be a well-functioning and stable country. Kivu is believed to be one of the least corrupt countries in Terraconserva. Property rights are well protected and contractual agreements are strictly honoured.
Large organisations, both in manufacturing and services, dominate the Kivuian economy, with the largest companies being Bluefront Inc., Kivu Aerospace Company, Stellanus Technologies, etc.
Kivu has a very free labor market, employers can hire and fire whoever they want,, and establishing a business can be done in very little time at a very low cost. No restrictions apply regarding overtime work, which allows companies to operate 24 hours a day, 365 days a year.
Although, Kivu operates a free-trade economy that gives businesses significant economic freedom, there are still strict regulations that prevent the exploitation of people and natural resources.
Contents
Natural Resources
Kivu has plentiful natural resources including, forests, fish, hydropower, and minerals. Natural resources are an important for rural residents.
In 2008, strict regulations were placed on the harvesting of its natural resources. These regulations were placed to ensure that all natural resources are harvested sustainably without significantly harming the environment.
Worker’s Rights
Kivu has very strong workers’ rights, including state funded universal healthcare. Parents receive a federally mandated minimum of 10 weeks of parental leave per year. Depending on the company, most Kivuians receive around 21 days of sick leave per year. Kivu has an unemployment rate of 5.7%, with 66% of the working age population employed. The female employment rate is high, as gender segregation and discrimination were banned in the 1990s. The minimum wage in Kivu is $18.25 KCRD per hour, and the difference between a company’s lowest and highest paid employees is relatively small compared to other similar economies. Only about 10% of the population lives below the National poverty line of earning less than $2,000 Quebecshirite Credits per month.
Kivu has a large, well funded pension program for all citizens. Citizens are automatically permitted to access their pensions after they turn 60, or are disabled.
Unemployment compensation is relatively high. The level of unemployment benefits is dependent on former employment and on membership of the Kivuian government’s unemployment fund.
Collective Labor Agreements
Kivuian law requires that all businesses with greater than 99 employees must have a collective labor agreement that is approved by at least 52% of its employees. They are renewed every 3-5 years, depending on the company.
Controversies
People living in Eastern Kivu are, on average, wealthier than people living in other parts of Kivu. This causes a divide among the population.
Taxation
Kivu has a two-step tax scale with a provincial income tax of about 30% and an additional high-income state tax of 20–25% when a salary exceeds roughly 320,000 Quebecshirite Credits per year. In addition, a national values added tax (VAT) is added to all nonessential items bought by citizens. Certain items are subject to additional taxes beyond the VAT. The typical worker receives 45% of his or her labor costs after taxes. Corporate tax rates are 34%.
Currency
The currency is the Kivuian Credit which is regulated by the Kivuian National Bank, which is headquartered in Buchthafen.
Spending
Kivu spends 26.3% of its GDP on public social spending. 5.8% of GDP is spent on education, and 10.0% is spent on healthcare.
Tourism
Kivu’s international tourist industry is among the largest in the world, and accounts for roughly 12.7% of GDP. Stunning landscapes, biodiversity, and picturesque cities, make Kivu one of Terraconserva’s most visited countries. In 2018 approximately 61 million people visited Kivu.
Manufacturing
Shipbuilding, aerospace, and automotive products make up the majority of Kivu’s manufacturing industry. Manufacturing accounts for 11.9% of GDP, and is the second largest industry in Kivu. Bluefront Inc. and Kivu Aerospace Company are the 2 largest manufacturing companies in Kivu.
One of the major factors limiting the Manufacturing industry, is Kivu’s reliance on importing materials, particularly metals, from other countries.
Agriculture
Despite Kivu’s large size, only about 5.3% of Kivu’s landmass, is used for agriculture. This is in part because of Kivu’s strict environmental regulations. Most of Kivu’s farmland is located in the southern interior regions near and to the south and west of TBD. However, Kivuian farmers, with help from the government, are extremely efficient, because of this efficiency agriculture is the 3rd largest industry in Kivu.
Exports and Imports
The Kivuian economy relies extensively on trade, particularly the importing of goods. Kivu’s main trade partners are: X,Y, and Z. Tariffs or import quotas are placed on imported goods to protect Kivuian businesses and to help pay for Kivu’s welfare state.
| Rank | Export | Primary Importer |
|---|---|---|
| 1 | Technology | |
| 2 | Agricultural Goods | |
| 3 | Lumber and Lumber Products | |
| 4 | Military Ships and Planes | |
| 5 | Fish and Fish Products |
| Rank | Import | Exported primarily from |
|---|---|---|
| 1 | Raw Metals | ? |
| 2 | Oil | ? |
| 3 | Agricultural Goods | ? |
| 4 | ? | ? |
| 5 | ? | ? |
