Business

New figures show recession has continued for a second year

Adam I, Editor

SERKATIA – Today, the Ministry of Finance published its annual report for the 2017-18 financial year, which has shown that the recession and the budget deficit have both continued for a second year, albeit reduced. The GDP is now at £40.83, down from £50.58 last year, a recession of around 20%. Last year’s recession was over 50%, which means that the drop has at least been slowed significantly. The budget deficit was £21.74, compared with £44.68 last year.

Balancing the Accounts
The Ministry of Finance released the annual Treasury & Economic Reports earlier today.

The report blamed the de-activation of the Contributions Scheme for the prolonged poor financial situation. The Scheme, which once generated the majority of government revenues, was suspended in September 2017, and despite reforms put in place by the Public Finance Act 2018 in June this year, there are currently no active contributors. This has meant the government is fully reliant on company tax, which remains extremely low compared to even the most basic expenses. This year, there was only the bare minimum expenditure – renewing the empireofadammia.org.uk domain name – but despite this the deficit is still there. Alarmingly, civil servants have warned that unless the government begins raising more revenue soon, it could be forced to either shut down the national website or face bankruptcy within the next two years. The Treasury reserves, which two years ago stood at almost a hundred pounds, have now been depleted to just £18.

The inactivity of both the Contributions Scheme and publicly-owned companies such as Imperial Mail have meant that the private sector contributed 100% of the GDP this year. Capital Brewery has maintained fairly consistent, yet slightly reduced profits of £10.80. By far the biggest contributor to the economy was Adammic Investment Ltd., which reported annual profits of £30.03. Unfortunately for the government, this has not translated into tax revenues, due to the fact that Adammic Investment is reportedly having trouble paying its tax bill due to cash flow issues. Apparently, Adammic Investment currently owes the Treasury quite a fair amount in unpaid tax, which could go a long way to eliminating the deficit if it were paid.

With the report coming just weeks before the crucial National Election, the parties will no doubt be trying to spin the report one way or another. The government will likely be keen to emphasise the fact the deficit has been cut, both in absolute terms and as a share of GDP, that the private sector is on the rise and that the recession has been slowed. The government’s opponents, on the other hand, may be seeking an explanation as to why the government has failed to raise almost any revenue and has relied on its dwindling reserves to fund the national website. When the Budget was passed last December, it was expected that income-raising measures, such as the re-introduction of Contributions, would be implemented by the end of the winter, but this never occurred.

And, of course, what happens next for the Adammic economy? The report today criticised the Contributions Scheme as outdated, suggesting that it will never be taken up by citizens in the new provinces and that the old contributors in Greater Tytannia face practical difficulties in contributing now that the Treasury is located a hundred miles away. The recent introduction of the Sovereign Grant and the Imperial Bank give the government new tools with which to stimulate the economy and get it moving again, and spectators will no doubt be interested to see the party manifestos – expected to be released over the next couple of weeks – to see how exactly they plan to tackle the issue of healing Adammia’s struggling finances.

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Top Hat Software publishes Battleship Antarctica

Adam I, Editor

MATERNIA, Greater Tytannia – On the 27th of July, Adammic tech company Top Hat Software published Battleship Antarctica, the first video game it has distributed since 2014’s The Lion Game. Battleship Antarctica was developed by Alien8, a team of second-year undergraduates at the University of Birmingham, which included Emperor Adam I. The game was developed for a 20-credit team project module, for which the team were awarded a 2:1.

title_screen
Battleship Antarctica’s title screen. Game artwork by James Atkin.

Battleship Antarctica is a top-down tactical shooter game in which the player controls a battleship in a randomly-generated ice field, and must destroy enemy battleships whilst surviving for as long as possible. The game has both single-player and multi-player modes. The Emperor’s role on the team was to develop the game’s rendering system and parts of the user interface.

The game is now available to download on Top Hat Software’s website. It is understood that Top Hat Software is currently developing its own in-house project, with an early-access release by the end of the summer.

New figures show collapse in Adammic economy with GDP slashed in half

Adam I, Editor

SOUTH ALLURIA – A short while ago, the Ministry of Finance published its annual reports following the end of the Adammic financial year on Saturday. The figures showed a budget deficit larger than anticipated, and, worryingly, a huge recession which has crippled the Adammic economy.

Balancing the Accounts
Financial reports for the year have been published.

The Treasury has been producing its annual statements at the start of October since 2014, but this is the first year that they have been consolidated with the economic data to produce one single document, being called the Treasury and Economic Reports. The Budget for the financial year, approved by the Ruling Council last October, had planned to run a deliberate deficit, in order to reduce the level of unspent reserves in the Treasury. With revenues predicted at around £70, expenditure of £100 had been approved in order to run a deficit of £30. However, due to the logistical issues involved with the Emperor living away from home in Birmingham, over £20 worth of Contributions went unpaid, and they were recently written off by the Cabinet following a mix-up where many in the government had believed that the Contributions Scheme had been suspended months previously. As a result, government revenue for the 2016-17 financial year was £50.32, against expenses of £95, giving a deficit of £44.68. This brought Treasury reserves from £85 this time last year to £40.32 now. Whilst this is lower than expected, this shouldn’t be a cause for alarm. The next government will likely cut public spending in its Budget and allow reserves to build back up a little. However, the report does note that future revenues are currently uncertain, with a poor economy yielding low taxes and the fate of the Contributions Scheme undecided. The backdrop of the ongoing transition of central government from Yorkshire to Birmingham is likely to cause some upheaval in the public finances going forward.

gdpgraph
Graph of the GDP throughout Adammia’s history, with the recent collapse clearly visible.

Far more eye-catching is the news regarding the economy, which is far from optimistic. A number of factors conspired to yield a massive recession: unpaid Contributions as already mentioned, Maker Studios terminating its contract with AB Animation Ltd., Top Hat Software being unable to find new commissions, and reduced wine and newspaper sales. The GDP plummeted from £118.95 last year to just £50.58 now, representing a recession of 57.48%.

The only glimmer of hope was from new company Adammic Investment Ltd., a subsidiary of Emperor Adam I’s Imperial Holdings group; their initial investments have reportedly earned impressive capital gains, although they have been largely offset by the overheads involved in setting up the investment fund’s portfolio (in particular, the brokerage transaction fees and stamp duty). The company is adopting a buy-and-hold strategy in order to reduce overheads from transaction fees, so if their investments continue to perform well on the stock market, they could soon start to become a major player within the Adammic economy. Recently, the Emperor provided an additional £120 of equity to the fund, which was invested in ETF tracker funds for the Euro Stoxx 50 and Standard & Poor 500 indices.

Once the new government in Birmingham has been assembled, it will already have its first challenge in front of it – how to get the economy moving again. The MoF report notes that the transition could provide both opportunities and problems, and advises ministers to think carefully. Much is uncertain at this point in time, but things can’t get much worse than they are currently, so no doubt many will be tempted to believe that an economic recovery is inevitable.

Despite the economic hardship, unemployment is actually down, and is now at 15.6%. This is mostly due to an influx of new citizens in North Alluria who are either enlisted in the Military or, in some cases, involved in Alluria’s civil administration. The National Employment Agency also updated its definitions so that being a member of the Ruling Council counts as employment in its own right.

The report can be read in full here.

Emperor Sets Up Investment Fund And Holding Group

Adam I, Editor

ADAMSVILLE, Primoria – Earlier today, His Imperial Majesty the Emperor registered two new companies with the Imperial Companies Agency. The first of these was Adammic Investment Ltd., a private investment fund. The Emperor has provided this company with £150 of equity, and now has £141.50 invested in the London Stock Exchange (around £8 was lost due to stockbroker’s fees and UK stamp duty). The fund has bought shares in Game Digital, Rolls-Royce, Morgan Advanced Materials and National Express.

London Stock Exchange
London Stock Exchange, where Adammic Investment Ltd. has been trading.

The second company which was registered was Imperial Holdings Ltd., a holding group for the three Adammic businesses which the Emperor has created: AB Animation Ltd., Top Hat Software and Adammic Investment Ltd. Imperial Holdings now owns these three companies as subsidiaries in a major restructuring of the Emperor’s private business operations.