The Highlandic Federation has the 6th largest singular economy in the world, (and largest in Auriga Bella) measured by nomial GDP and one of the largest in the world in regards to PPP. The Highlandic economy consists of the economy of the former Republic of White Highlands and the Union Of Kinsek. In 3595 the Highlandic Federation was the 6th largest importer, and the 4th largest exporter throughout the Soviet Federation, and had the highest level of outward foreign direct investment.
The manufacturing and mining sector plays a significantly important part of the Highlandic Economy, contributing to approximatley 67.7% of all production throughout the country. The Highlandic construction and energy industries are the eigth and fifth largest respectively throughout Kebir Blue (varying on form of measurement). The Highlandic Economy is largerly boosted by Oil and Fractured gas production, which is said to contribute nearly SC$ 600 billion in the economy each year. There are significant variations in regional prosperity, and the types of industries commonly found there, with Estobania having the highest levels of GDP per Capita. Estobania has the largest city GDP within Auriga Bella and White Highlands.
Government spending and economic management
Government involvement throughout the economy is primarily excercised by the Highlandic Treasury, headed by the Chancellor of the Exchequer. In recent years, the economy has been managed in accordance with Quidquid operat. As a result of this, differing provincial regions have adopted sometimes contraditory economic policies, with one region adapting Leisse - Faize economics, with southern regions favouring higher levels of regulation and taxation. Local provincial governments, have the power to change corporate taxation levels within a band range of -5% ~ 5%.
In the recent 20 year period, spending by the government has averaged at around 15% of annual GDP. As a result of the recent creation of the Mandarran Highlandic Market, this figure is set to be reduced by half to around 10% GDP, which are historically low levels for the Highlandic Federation.
Taxation throughout the Highlandic Federation consists of payments to both local and national governments: Local government is financed by grants from central government, taxation to local government includes rental tax, council tax and localised business rates. Central government aquires it's revenues largerly from income tax, corporate tax and added value taxes.
Agriculture throughout the Highlandic Federation is intensive, highly mechanised and moderately efficient by Highlandic standards, nearly all of the country's needs. It contributes around 6% to the Highlandic GDP, and has the largest share throughout Kebir Blue. Around a third of all production is achieved through the management of liverstock, with the remainder deriving from arable crops.
The Highlandic Federation maintains an intensive, though significant fishing fleet and industry. It's fleets, situated in a variety of towns and county's along the coastline, bring home fish ranging from herring to salmon through a government 'Sustainability project,'
The construction industry throughout the Highlandic Federation contributed around SC$ 200 Billion to the national GDP, and has the largest construction markets throughout Kebir Blue. The industry employed around 2 million in the year of 3595. There were around 10,000 different construction firms throughout the Highlandic Federation, with a majority of them hiring between 1 - 15 people. Some corporations however have employees numbering 150,000. Most construction work is committed abroad, with one of the largest projects currently being undertaken within the Republic of Romanam. Construction is one of the most common forms of aid for the Highlandic Federation to give after wars and disasters, or as economic assistance.
In 3595, the Highlandic Federation manufacturing sector produced around 15% of total Highlandic Federation production. Currently numbering at around 423.6 Billion €, the employment for the manufacturing sector in 3595 numbered at around 3.7 million. Most manufacturing and production is done through the industrial sector of the economy, and common products includes industrial equipment, electronic equipment and interior furnishings. With a significant number of produced materials being exported to local and common markets.
Mining, Energy and Quarrying
According to the 3600 Soviet Federation Datacommons, the gross value in SC$ for Mining, Energy and Quarrying accounted for nearly 600 Billion SC$ in 3595. Since 3570 levels of offshore oil and fracking production has nearly doublelled. The composition of energy in the Highlandic Federation was 50% Oil , 40% by Hydraulic Fracturing and the remainding 10% being made up of hydroelectric, wind power and biomass. On average the Highlandic Federation produces over 65 million barrels of every month, 40% of it is only actually consumed. With the remainder being exported.
Coal and Natural Gas was once imported into the Higlandic Federation, however as of 3570 the Highlandic Federation has had proven Gas and Coal reserves of 100 million tonnes. With a further billion tonnes of Coal/Gas exploitable through Hydraulic Fracturing or 'Fracking'. Fracking has played a important part of energy mixup and independence of the Highlandic Federation, at current levels the Highlandic Federation has enough energy to last untill 4200.
The Highlandic Federation is home to 2 of top 15 energy companies, as well as the second largest oil corporation. Minseto Offshore Oil.
The Highlandic Federation is notable for having it's own de facto currency, the Eurin ( € ). The Eurin is the official currency of the Highlandic Federation, despite this it's role within the overall economy is limited to internal transactions between quite often the most isolated regions of the Highlandic Federation. The Eurin is pegged to the International Dollar ( SC$ ) at a price which is regulated and set by various departments of the Highlandic Treasury and Highlandic Bank. Sometimes transactions directly between national currencies have occured, such as defence contracts and commodity purchases, these are a rare ocassion though and are done to avoid the world markets whenever they fracture.
The Highlandic Federation is a member of a common market. The Mandarran Highlandic Market was created in 3584 as a larger, alternative to the Highlandic Trading Bloc between the two countries of the Highlandic Federaton and the Mandarran Union. Since then the common market has grown substantially to almost rival that of the UniSov trading market within that of the Soviet Federation, with significant friction being caused diplomatically. Overall, almost 50% of all trade is conducted within the common market, with the remainder being conducted locally - and 10% operating internationally.