by Max Barry

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The Grand Monarchy of
Democratic Socialists

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United Draconia's Economy

The Federation of a United Draconia has a stable economy with a vibrant private sector, a large state sector, and an extensive social safety net.
The country is richly endowed with natural resources such as diamonds, fish, forests, and minerals. United Draconia is a leading producer and the world’s second-largest exporter of seafood. The government manages the country’s red diamond resources through extensive regulation. The diamond sector provides about 9% of jobs, 12% of GDP, 13% of the state’s revenue, and 37% of exports, according to official national estimates. United Draconia is the only place on earth where red diamonds are found demanding a hefty price on the world market. A 0.20ct purplish red can cost about $300,000 per carat and 0.40ct about $500,000. Domestic electricity production relies almost entirely on hydropower.

After solid GDP growth in the 2004-07 period, the economy slowed in 2008, and contracted in 2009, before returning to modest, positive growth from 2010 to 2017. The United Draconian economy has been adjusting to lower energy prices, as demonstrated by growth in labor force participation and employment in 2017. GDP growth was about 1.5% in 2017, driven largely by domestic demand, which has been boosted by the rebound in the labor market and supportive fiscal policies. Economic growth is expected to remain constant or improve slightly in the next few years.