Economy of La Rossa
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 The nominal GDP of the Republic of La Rossa, published by Giornale Economico, measured over a period from 25 TT to 42 PC. A guide for reading Rossan numerals can be found here. | |
| Currency | Rossan Argotto |
|---|---|
| Organizations | Lighthouse Alliance |
| Statistics | |
| Population | 700,000 |
| GDP | 30.93 billion argotto |
| GDP growth | 3.3% (42 PC) |
| GDP per capita (average) | 43531 argotto |
| GDP per capita (median) | 32572 argotto |
| Inflation | 0.8% (42 PC) |
 The GDP per capita (average and median), normalized to the value of the argotto in 42 PC, measured over a period from 25 TT to 42 PC. | |
The economy of La Rossa is a developing mixed social market economy. An internationally-emerging private market, often subsidized by the Rossan state, has been coupled with high rates of welfare ever since the revolution following the Silver Crisis, a deflationary period caused by the exhaustion of silver reserves under the island, which used to back up the nation's currency at the time. The nation's economy has been described as stagnant in recent years, owing to its high inflation rate, which often overshadows growth. The nation's median GDP per capita fell over the past decade, tought to be one of the main drivers behind the nation's declining population. Although the Rossan government only made contact with the world in 41 PC, followed by government-helped efforts to establish itself in the archipelago's market, private vessels had departed from the island for years prior, although at high travelling costs.
The period after the Silver Crisis oversaw a centralization of state power, and nationalization of major industries, most belonging to an oligopoly of the long-standing Six Families. Breaking up their ownership over the island, a sharp progressive tax was imposed upon the island's wealthy, and the money was redistributed through robust welfare programs. Although the overall economy continued to see a decline, due to the fiscal risk of investing during the reign of Dux Falcone, the period oversaw a great decrease in poverty rates, and a move towards the matching between the median and average GDP per capita, indicating a higher degree of income equality. Although inequality rose over the past decade due to privatization and freer international trade, it remains at lower levels than before the Silver Crisis.
The island's currency is the Rossan Argotto, issued by the Banca Rossa, the nation's central bank. Prior to 20 PC, the paper currency was backed by silver, with a fixed exchange rate between the two. After the silver standard was abolished by Ducissa Alessandra DeGaio, a surge of inflationary spending, matched with the privatization of recently nationalized industries, was used to revitalize the decade-stagnant economy, leading to double-digit growth rates over the following years, and a sharp increase in living standards. As the market cooled near the end of the 20s PC, higher levels of inflation overtook growth, leading to a slow decline in earnings for most citizens across the nation of La Rossa. Following two unsuccessful governments, discontent led to the election of Dux Leo Minestrici, a member of the island's past artistocracy, who vowed to breathe life back into the island nation through the slow opening of La Rossa to the international market.