OCSP1: Interim Report on the State of the Oceanan Economy Note: All figures are very rough estimates,

and are subject to review and change. 1) General Macroeconomic Situation Currently, the macroeconomic situation in Oceana is worrying. Continued lack of business and consumer confidence in the Oceanan economy have combined with the relative confusion in the post-revolutionary situation to produce a relative economic malaise. While Oceanan banks held up relatively well in the recent global financial crisis, due to King Tiervans autarkic economic policies including considerable controls on the movement of capital abroad, having the unintended effect of sheltering the Oceanan economy from exposure to many toxic assets from overseas, they currently remain averse to increasing lending in the shaky economic climate. Businesses in general remain averse to expanding or hiring new employees, preferring to weather the storm rather than take risks. 2) Key macroeconomic statistics GDP: Estimates of current Oceanan GDP are in the region of A285 billion, taking into account considerable margin of error due the the paucity of useful statistical information produced under the Tiervan regime. Assuming a population of 12,736,521 people, GDP per capita is in the region of A22,428. GDP has shrank an estimated 4.1% over the past four years, with the most considerable declines in the quarters including the revolution itself, and the rioting in November. Although in the current quarter the economy stabilised, with growth of 0.4%, current projections for the next two quarters suggest the economy may shrink a further 0.7%. Median earnings: Median total compensation of employees (as well as wages, this includes some in-kind benefits, allowances, bonuses, and cash value of other associated benefits of employment), is estimated to be A15,394. This is not the same as the actual median wage received, and does not include the costs to the employee associated with attending work (transport, clothing, tools, etc), which is currently calculated, using current estimates, to be closer to A14,210. Inflation: Inflation remains relatively low and stable in the current financial climate at 1.5% CPI and 1.8% RPI, due to the deflationary pressures of the global economic situation. National Debt: Although the current government has suggested it has no debt, this is not strictly true. The issue is, since King Tiervan ran a particularly personal style of government, assuming a quasi-feudal state of domination over the entire countrys resources, determining which can be considered King Tiervans personal debt and that associated with the state itself is extremely difficult, and negotiations with those owning government debt as to the value or situation of said debt are ongoing and unlikely to be resolved soon. Estimates range wildly, from a tiny 3.2% of current GDP to a modest 28.6%. Ratings agencies such as Odd & Richs and Cheerys have given the Oceanan government a tentative AA rating in the light of modest levels of government debt. Unemployment: Unemployment remains a difficult subject to thoroughly establish in a rigorous statistical fashion, but the picture is generally negative. Use of labour force surveys have returned results from 18.3% of the labour force to 25.2%; certainly, it is likely that over a million Oceanans are currently unemployed. Youth employment is considerably higher than these

estimates, but difficult to currently verify. Oceana has a current employment rate of 59.1% of the total working-age population.