Economy of Pannonia
Pannonia transformed from a traditional centrally planned economy into a socialist-oriented market economy. Since the mid-1990s it is experiencing rapid growth. Pannonia's economy is a multi-sectoral commodity economy regulated by the market, consisting of a mixture of private, collective and state ownership of the means of production. However, the state sector and collectively-owned enterprises form the backbone of the economy. Small private businesses are allowed and encouraged, but larger collective and state-owned businesses are much more widespread. Pannonia applied the Israeli model of agricultural kibbutz into small businesses and technology companies.
Unlike countries like China, whose socialist market economies are considered as a temporary necessity in order to become a true communist state, Pannonian leaders are not very orthodox towards communism. Where countries like Vietnam (Socialist Republic of Vietnam) or Chimor (Ataxunist Republic of Chimor) embed their ideology in the official state's name, Pannonia's has no official ideology - it's simply the "Principality of Pannonia".
However, the economy is centralized to a certain extent, the economy is "fair" and "social" and a minimal income for every citizen is guaranteed. Undesirable kapitalist symptoms like "excessive enrichment" are countered by the government, although doctors have a significantly higher income than factory workers.
Mining (iron, silver), steel industry and arms industry (Pannonian heavy arms and sophisticated hi-tech weapon-systems are exported all over the world without many ethical restrictions) are an important base for the economy. Medical technology is becoming increasingly important. Tourism formed a steady form of income since the 1950's and is growing. Eco-tourism and skiing are becoming more popular, just as health resorts and medical treatment holidays, since Pannonian healthcare is of excellent quality and cheap for West-Europeans and Russians.
Pannonia's service sector is expanding since the country transformed into a socialist-oriented market economy. The gross domestic product (GDP) per capita is $ 26,900.