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Economic collapse budget deficit - ahmadbinsultan - 05.07.2020 23:52

In my US template Saudi Arabia, I built a huge national credit of almost 25 trillion dollars, the state budget was run under a budget surplus for a few years with a normal positive economic growth of 2%-4% every year! In 2017 i decided to make use of the national credit of 25trillion and ran a fiscal deficit of almost 9 trillion by reducing my Aqu tax and increasing my PE spending in general! However, i had a 23% economic growth in my first quarter and the next quarter i had an 18% negetive economic growth. However since i made the move in 2017 and the currency is collapsing, the GDP collapsing, and the economy is running into a crazy crisis. I tried to decrease the deficit but yet nothing changed. Can anyone tell me what is happening? Check my state plz and tell me whats wrong. Not to mention my capital is low, my MS is higher then GDP, and i have a trade surplus. Plz tell me whats going on i am losing my mind

RE: Economic collapse budget deficit - MrProper - 08.07.2020 11:58

Occassional "spikes" in economic growth - both upwards and downwards - are perfectly normal. This applies in particular if projects are started or finished. Furthermore, the resolution of tasks can have a significant effect on the economy, depending on the selected options.

Investing into your states budget usually has a positive impact on most state parameters. (With the result depending on the selected PE's) However, investing into the states budget will never result 1:1 in economic growth.

If I were you, I would not worry too much. To me, your state looks fine. The average citizen earns about 3 times the cost of living, allowing for a decent life. The unemployment rate is below 5% and even pensioners are well payed.

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