Yesterday, the treasury released some statistics that has proved the Essexian economy has remained stronger than its international neighbours. In the second quarter, there has been a 0% in decline in GDP from quarter one. That means this is the tenth quarter in Essexian economic history in which there has been no overall growth or recession. Compared to the UK, which has seen a 20.3% reduction in GDP in Q2, it is clear the monetary measures imposed by Chancellor Nicolas have had excellent effect in saving the economy from the despair seen across the world.
Essexia has also exceeded when it comes to employment – with the numbers holding strong and consistent since the start of the pandemic. Of the 34 people that worked in Essexia in April (all in government and administration, as well as the military), there are now 33, a reduction of just 1. That represents a decline in employment of just 3%, an admirable figure when compared to the 15% spike seen in the UK.
Inflation is another aspect which has remained stable during the pandemic. The Essexian Price Index, which is the mechanism used by the Royal Bank of Essexia to calculate the rise in cost of 5 different consumer goods each quarter (including tap water, paper copies of the constitution and Mars bars,) has shown how there has been a 0% rise in the level of inflation. The Bank has ascertained that their strong polices to contain potential inflationary pressures as a result of the pandemic have been successful. These measures controversially included increasing the interest rate to 100% to encourage saving, which was uniquely possible seeing as the Essexian Yen is not traded in international foreign exchange markets, meaning any extreme monetary policies have no impact on the exchange rate. The government was more reserved in regard to expansionary fiscal spending, and the government budget has remained at £0, a 0% increase from the last budget. This came as a surprise to some observers in Essexia, seeing as the socialist Progressive Workers Party seemed to have been championing what some have described as ‘regressive, monetarist economics.’
The figures and the apparent success of the Essexian economy during the coronavirus has not come without its criticism. The 0% increase/decrease in GDP is as a result of the fact Essexia does not have a GDP, nor does it have an economy – meaning it has not been affected in the same way macronational economies have. Similarly, claims of the 0% rise/fall in the inflation level can be disputed for the same reasons – as well as the fact that goods measured in the EPI are free for Essexian citizens, meaning there are no overall costs. The supposed success of the RBE’s monetary measures have been claimed by some to be ‘laughable,’ primarily due to the fact the rise in interest rate effected no money, seeing as Essexian banks are yet to hold savings or any kind of currency.
Despite the criticisms, the Essexian government, specifically the treasury, has maintained that it is doing the best job it can, given that Chancellor Nicolas said ‘we face difficult circumstances due to the fact that not only do we have no money or salaried employment, we also have no imports or exports, or any economy at all – which makes it difficult for the treasury to stimulate any form of economic growth – which for the foreseeable future will have to remain a figment of our imaginations.’
The news comes as Abelden reported earlier today a 100% rise in GDP from $0 USD to $20 USD, which puts them on track to become a micronational economic superpower. Whether this growth will be as stable as Essexia’s 0% is unclear, but many analysts in Essexia forecast the Abeldane economy will drop by 100% in the next quarter, which puts it in a substantially worse position than the 0% decline Essexia is forecast to have, which will come of some relief for those managing Essexian finances.