The Deltarian
The Deltarian is the national Newspaper of Deltaria and gives you the news that matters right on your doorstep
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November 6th 4768
Economic growth continues, tourism sector expands as Deltarian economic policy starts to show its effect
As last quarters report shows economic growth and growing sectors the economic policy of Deltaria is clearly starting to show its effects
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Cahtice: Government investment, private initiatives and a economic organization opening up Deltarian markets to the wider Majatran region. The recent economic report published by the Deltarian Institute for Economic Development shows that the economic policies of Deltaria are starting to take its effect in the numbers. The institute, which releases quarterly reports on the state of the Deltarian economy, published their report of the last quarter yesterday morning. In the report the Deltarian economy showed a growthrate of 3.4% of its GDP, the highest it has been since 100 years, furthermore the unemployment rate had dropped from 7% one year ago to only 5.2% now. While experts feared a high increase in inflation this rate was also lower then anticipated, with a inflationrate of 2.4%. According to the report the high growthrate can be attributed to recent efforts by the Deltarian government to focus on a diversification of the Deltarian economy. While the military industry still accounts for a large chunk of the Deltarian economy the tourism sector, which has seen great growth in last quarter, is becoming increasingly important for local economies in the nation. Furthermore recent efforts by First Minister Horak to scrap several regulatory measures has caused a small 'boom' in private investment and new private bussinesses popping up.
The Deltarian economy has always been notorious for its lack of diversity. The government efforts of the past 10 years in encouraging private sector growth while at the same time directly investing in both public and private projects has caused the Deltarian economy to diversify faster then anticipated. Its renewed emphasize on private initiatives and its drive to invest in local projects is one of the reasons that this quarters report is better then initially expected
Said the DIED report. The report also mentioned a special role for the MEA which has recently properly been launched and is currently on the way of signing a massive trade deal with Indrala.
The MEA, despite a rough and controversial start, has shown that it is capable of connecting Majatran economies. With the recent election of a Chairman and its ongoing trade deal negotiations it is expected that the MEA will play a large role in economic development not only for Deltaria, but for the entire majatran region. Its ability of opening Majatran economies for eachother by removing trade barriers is commendable and the increased cooperation the association has brought upon the majatran continent is having a significant impact.
Despite the positive nature of the report there are also some problems pointed out, particularly in regards to Deltarian military expansions and increased government investments. According to DIED the "continued and expensive military development and construction programs of the Deltarian Armed Forces" could pose a serious threat to a healthy fiscal balance in the long run. A concern that has been raised before. Furthermore Deltarian policies that include heavy government investments in certain sectors is also "damaging of the balanced nature Deltarian fiscal policy has based itself upon". The Ministry of Finance responded positively on the report saying that it is, "happy with the economic progress of the recent years", and reiterating that, "the military programs as well as other investment and budgetary matters are constantly balanced out, both by our ministry as well as the Senate. A system of clear checks and balances has been put in place over the years to make sure that no budgetary drain can occur."
The deltarian economy has shown more growth last quarter then anticipated