Quote Originally Posted by MoKus View Post
Ok. I just check that watch tower does not affect the economy. It however improves loyalty. It seems that loyalty doesn't affect economy!
Indirectly, it does. The more loyal the province, the higher you can raise the taxes. You generally want to keep province loyalty above 120%, there are many different ways to affect province loyalty and lowering taxes is one big way to do it. But that comes at an economic cost.

Watchtowers give +20% loyalty, forts give a bonus as well but I'm not sure how big it is.