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Ekonomia (2006)

Ekonomia - wybierz rok:
- Ekonomia (2001) (porownaj)
- Ekonomia (2002) (porownaj)
- Ekonomia (2003) (porownaj)
- Ekonomia (2004) (porownaj)
- Ekonomia (2005) (porownaj)
- Ekonomia (2007) (porownaj)
- Ekonomia (2008) (porownaj)


Informacje o Ekonomia w 2006 rok

AfganistanAfganistan Afganistan's economic outlook has improved significantly since the fall of the Taliban regime w 2001 because of the infusion of over $8 billion w international assistance, recovery of the agricultural sector and growth of the service sector, and the reestablishment of market institutions. Real Produkt krajowy brutto growth is estimated to have slowed w the last fiscal year primarily because adverse weather conditions cut agricultural production, but is expected to rebound over 2005-06 because of foreign donor reconstruction and service sector growth. Despite the progress of the past few years, Afganistan remains extremely poor, landlocked, and highly dependent on foreign aid, farming, and trade z neighboring countries. It will probably take the remainder of the decade and continuing donor aid and attention to significantly raise Afganistan's living standards from its current status, among the lowest w the world. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs, but the Afghan government and international donors remain committed to improving access to these basic necessities by prioritizing infrastructure development, education, housing development, jobs programs, and economic reform over the next year. Growing political stability and continued international commitment to Afghan reconstruction create an optimistic outlook dla continuing improvements w the Afghan economy w 2006. Expanding poppy cultivation and a growing opium trade may account dla one-third of Produkt krajowy brutto and looms as one of Kabul's most serious policy challenges. Other long-term challenges include: boosting the supply of skilled labor, reducing vulnerability to severe natural disasters, expanding health services, and rebuilding a war torn infrastructure.
AkrotiriAkrotiri Economic activity is limited to providing services to the military and their families located w Akrotiri. All food and manufactured goods must be imported.
AlbaniaAlbania Lagging behind its Balkan neighbors, Albania is making the difficult transition to a more modern open-market economy. The government has taken measures to curb violent crime and to spur economic activity and trade. The economy is bolstered by annual remittances from abroad of $600-$800 million, mostly from Grecja and Wlochy; this helps offset the towering trade deficit. Agriculture, which accounts dla about one-quarter of Produkt krajowy brutto, is held back because of frequent drought and the need to modernize equipment, to clarify property rights, and to consolidate small plots of land. Energy shortages and antiquated and inadequate infrastructure contribute to Albania's poor business environment, which make it difficult to attract and sustain foreign investment. The planned construction of a new thermal power plant near Vlore and improved transmission and distribution facilities will help relieve the energy shortages. Also, the government is moving slowly to improve the poor national road and rail network, a long-standing barrier to sustained economic growth. On the positive side: growth was strong w 2003-05 and inflation is not a problem.
AlgieriaAlgieria The hydrocarbons sector is the backbone of the economy, accounting dla roughly 60% of budget revenues, 30% of Produkt krajowy brutto, and over 95% of export earnings. Algieria has the seventh-largest reserves of natural gas w the world and is the second-largest gas exporter; it ranks 14th w oil reserves. Sustained high oil prices w recent years, along z macroeconomic policy reforms supported by the IMF, have helped improve Algieria's financial and macroeconomic indicators. Algieria is running substantial trade surpluses and building up record foreign exchange reserves. Real Produkt krajowy brutto has risen due to higher oil output and increased government spending. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector, however, has had little success w reducing high unemployment and improving living standards. The population is becoming increasingly restive due to the lack of jobs and housing and frequently stages protests, which have resulted w arrests and injuries, including some deaths as government forces intervened to restore order. Structural reform within the economy, such as development of the banking sector and the construction of infrastructure, moves ahead slowly hampered by corruption and bureaucratic resistance.
Samoa AmerykanskieSamoa Amerykanskie Samoa Amerykanskie has a traditional Polynesian economy w which more than 90% of the land is communally owned. Economic activity is strongly linked to the US z which Samoa Amerykanskie conducts most of its foreign trade. Tuna fishing and tuna processing plants are the backbone of the private sector, z canned tuna the primary export. Transfers from the US Government add substantially to Samoa Amerykanskie's economic well being. Attempts by the government to develop a larger and broader economy are restrained by Samoa's remote location, its limited transportation, and its devastating hurricanes. Tourism is a promising developing sector.
AndoraAndora Tourism, the mainstay of Andora's tiny, well-to-do economy, accounts dla more than 80% of Produkt krajowy brutto. An estimated 11.6 million tourists visit annually, attracted by Andora's duty-free status and by its summer and winter resorts. Andora's comparative advantage has recently eroded as the economies of neighboring Francja and Hiszpania have been opened up, providing broader availability of goods and lower tariffs. The banking sector, z its partial "tax haven" status, also contributes substantially to the economy. Agricultural production is limited - only 2% of the land is arable - and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing output consists mainly of cigarettes, cigars, and furniture. Andora is a member of the EU Customs Union and is treated as an EU member dla trade w manufactured goods (no tariffs) and as a non-EU member dla agricultural products.
AngolaAngola Angola's high growth rate is driven by its oil sector, z record oil prices and rising petroleum production. Oil production and its supporting activities contribute about half of Produkt krajowy brutto and 90% of exports. Increased oil production supported 12% growth w 2004 and 19% growth w 2005. A postwar reconstruction boom and resettlement of displaced persons has led to high rates of growth w construction and agriculture as well. Much of the country's infrastructure is still damaged or undeveloped from the 27-year-long civil war. Remnants of the conflict such as widespread land mines still mar the countryside even though an apparently durable peace was established after the death of rebel leader Jonas SAVIMBI w luty 2002. Subsistence agriculture provides the main livelihood dla half of the population, but half of the country's food must still be imported. In 2005, the government started using a $2 billion line of credit from Chiny to rebuild Angola's public infrastructure, and several large-scale projects are scheduled dla completion by 2006. The central bank w 2003 implemented an exchange rate stabilization program using foreign exchange reserves to buy kwanzas out of circulation, a policy that was more sustainable w 2005 because of strong oil export earnings, and has significantly reduced inflation. Consumer inflation declined from 325% w 2000 to about 18% w 2005, but the stabilization policy places pressure on international net liquidity. To fully take advantage of its rich national resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to continue reforming government policies and to reduce corruption. The government has made sufficient progress on reforms recommended by the IMF such as promoting greater transparency w government spending but continues to be without a formal monitoring agreement z the institution.
AnguillaAnguilla Anguilla has few natural resources, and the economy depends heavily on luxury tourism, offshore banking, lobster fishing, and remittances from emigrants. Increased activity w the tourism industry, which has spurred the growth of the construction sector, has contributed to economic growth. Anguillan officials have put substantial effort into developing the offshore financial sector, which is small, but growing. In the medium term, prospects dla the economy will depend largely on the tourism sector and, therefore, on revived income growth w the industrialized nations as well as on favorable weather conditions.
AntarktydaAntarktyda Fishing off the coast and tourism, both based abroad, account dla Antarktyda's limited economic activity. Antarctic fisheries w 2003-04 (1 lipiec-30 czerwiec) reported landing 136,262 metric tons (estimated fishing from the area covered by the Convention on the Conservation of Antarctic Marine Living Resources (CCAMLR), which extends slightly beyond the Antarctic Treaty area). Unregulated fishing, particularly of Patagonian toothfish, is a serious problem. The CCAMLR determines the recommended catch limits dla marine species. A total of 23,175 tourists visited w the 2004-05 Antarctic summer, up from the 19,486 visitors the previous year. Nearly all of them were passengers on commercial (nongovernmental) ships and several yachts that make trips during the summer. Most tourist trips last approximately two weeks.
Antigua i BarbudaAntigua i Barbuda Tourism continues to dominate the economy, accounting dla more than half of Produkt krajowy brutto. Weak tourist arrival numbers since early 2000 have slowed the economy, however, and pressed the government into a tight fiscal corner. The dual-island nation's agricultural production is focused on the domestic market and constrained by a limited water supply and a labor shortage stemming from the lure of higher wages w tourism and construction. Manufacturing comprises enclave-type assembly dla export z major products being bedding, handicrafts, and electronic components. Prospects dla economic growth w the medium term will continue to depend on income growth w the industrialized world, especially w the US, which accounts dla slightly more than one-third of tourist arrivals.
Ocean ArktycznyOcean Arktyczny Economic activity is limited to the exploitation of natural resources, including petroleum, natural gas, fish, and seals.
ArgentynaArgentyna Argentyna benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Over the past decade, however, the country has suffered problems of inflation, external debt, capital flight, and budget deficits. Growth w 2000 was a negative 0.8%, as both domestic and foreign investors remained skeptical of the government's ability to pay debts and maintain the peso's fixed exchange rate z the US dollar. The economic situation worsened w 2001 z the widening of spreads on Argentine bonds, massive withdrawals from the banks, and a further decline w consumer and investor confidence. Government efforts to achieve a "zero deficit," to stabilize the banking system, and to restore economic growth proved inadequate w the face of the mounting economic problems. The peso's peg to the dollar was abandoned w styczen 2002, and the peso was floated w luty. The exchange rate plunged and real Produkt krajowy brutto fell by 10.9% w 2002, but by mid-year the economy had stabilized, albeit at a lower level. Produkt krajowy brutto expanded by about 9% per year from 2003 to 2005. Growth is being led by a revival w domestic demand, solid exports, and favorable external conditions. The government boosted spending ahead of the pazdziernik 2005 midterm congressional elections, but strong revenue performance allowed Argentyna to maintain a budget surplus. Inflation has been rising steadily and reached 12.3 percent w 2005.
ArmeniaArmenia Under the old Soviet central planning system, Armenia had developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics w exchange dla raw materials and energy. Since the implosion of the USSR w grudzien 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexes of the Soviet era. The agricultural sector has long-term needs dla more investment and updated technology. The privatization of industry has been at a slower pace, but has been given renewed emphasis by the current administration. Armenia is a food importer, and its mineral deposits (copper, gold, bauxite) are small. The ongoing conflict z Azerbejdzan over the ethnic Armenian-dominated region of Nagorno-Karabakh and the breakup of the centrally directed economic system of the former Soviet Union contributed to a severe economic decline w the early 1990s. By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic liberalization program that resulted w positive growth rates w 1995-2005. Armenia joined the WTO w styczen 2003. Armenia also has managed to slash inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Armenia's unemployment rate, however, remains high, despite strong economic growth. The chronic energy shortages Armenia suffered w the early and mid-1990s have been offset by the energy supplied by one of its nuclear power plants at Metsamor. Armenia is now a net energy exporter, although it does not have sufficient generating capacity to replace Metsamor, which is under international pressure to close. The electricity distribution system was privatized w 2002. Armenia's severe trade imbalance has been offset somewhat by international aid, remittances from Armenians working abroad, and foreign direct investment. Economic ties z Rosja remain close, especially w the energy sector. The government made some improvements w tax and customs administration w 2005, but anti-corruption measures will be more difficult to implement. Investment w the construction and industrial sectors is expected to continue w 2006 and will help to ensure annual average real Produkt krajowy brutto growth of about 13.9%.
ArubaAruba Tourism is the mainstay of the small, open Aruban economy, z offshore banking and oil refining and storage also important. The rapid growth of the tourism sector over the last decade has resulted w a substantial expansion of other activities. Over 1.5 million tourists per year visit Aruba, z 75% of those from the US. Construction continues to boom, z hotel capacity five times the 1985 level. In addition, the reopening of the country's oil refinery w 1993, a major source of employment and foreign exchange earnings, has further spurred growth. Tourist arrivals have rebounded strongly following a dip after the 11 wrzesien 2001 attacks. The island experiences only a brief low season, and hotel occupancy w 2004 averaged 80%, compared to 68% throughout the rest of the Caribbean. The newly re-elected government has made cutting the budget and trade deficits a high priority.
Wyspy Ashmore i CartieraWyspy Ashmore i Cartiera no economic activity
Ocean AtlantyckiOcean Atlantycki The Ocean Atlantycki provides some of the world's most heavily trafficked sea routes, between and within the Eastern and Western Hemispheres. Other economic activity includes the exploitation of natural resources, e.g., fishing, dredging of aragonite sands (The Bahamas), and production of crude oil and natural gas (Caribbean Sea, Gulf of Meksyk, and North Sea).
AustraliaAustralia Australia has an enviable Western-style capitalist economy z a per capita Produkt krajowy brutto on par z the four dominant West European economies. Rising output w the domestic economy, robust business and consumer confidence, and rising exports of raw materials and agricultural products are fueling the economy. Australia's emphasis on reforms, low inflation, and growing ties z Chiny are other key factors behind the economy's strength. The impact of drought, weak foreign demand, and strong import demand pushed the trade deficit up from $8 billion w 2002, to $18 billion w 2003, $13 billion w 2004, and nearly $17 billion w 2005. Housing prices probably peaked w 2005, diminishing the prospect that interest rates would be raised to prevent a speculative bubble. Conservative fiscal policies have kept Australia's budget w surplus from 2002 to 2005.
AustriaAustria Austria, z its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Niemcy's. The Austrian economy also benefits greatly from strong commercial relations, especially w the banking and insurance sectors, z central, eastern, and southeastern Europe. The economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Membership w the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to the new EU economies. The current government has successfully pursued a comprehensive economic reform program, aimed at streamlining government, creating a more competitive business environment, further strengthening Austria's attractiveness as an investment location, pursuing a balanced budget, and implementing effective pension reforms. Weak domestic consumption and slow growth w Europe have held the economy to growth rates of 0.4% w 2002, 1.4% w 2003, 2.4% w 2004, and 1.8% w 2005. To meet increased competition from both EU and Central European countries, particularly the new EU members, Austria will need to continue restructuring, emphasizing knowledge-based sectors of the economy, and encouraging greater labor flexibility and greater labor participation by its aging population.
AzerbejdzanAzerbejdzan Azerbejdzan's number one export is oil. Azerbejdzan's oil production declined through 1997, but has registered an increase every year since. Negotiation of production-sharing arrangements (PSAs) z foreign firms, which have thus far committed $60 billion to long-term oilfield development, should generate the funds needed to spur future industrial development. Oil production under the first of these PSAs, z the Azerbejdzan International Operating Company, began w listopad 1997. A consortium of Western oil companies is scheduled to begin pumping 1 million barrels a day from a large offshore field w early 2006, through a $4 billion pipeline it built from Baku to Turcja's Mediterranean port of Ceyhan. Economists estimate that by 2010 revenues from this project will double the country's current Produkt krajowy brutto. Azerbejdzan shares all the formidable problems of the former Soviet republics w making the transition from a command to a market economy, but its considerable energy resources brighten its long-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures are slowly being replaced. Several other obstacles impede Azerbejdzan's economic progress: the need dla stepped up foreign investment w the non-energy sector, the continuing conflict z Armenia over the Nagorno-Karabakh region, and the pervasive corruption. Trade z Rosja and the other former Soviet republics is declining w importance while trade is building z Turcja and the nations of Europe. Long-term prospects will depend on world oil prices, the location of new pipelines w the region, and Azerbejdzan's ability to manage its oil wealth.
BahamyBahamy The Bahamas is a stable, developing nation z an economy heavily dependent on tourism and offshore banking. Tourism together z tourism-driven construction and manufacturing accounts dla approximately 60% of Produkt krajowy brutto and directly or indirectly employs half of the archipelago's labor force. Steady growth w tourism receipts and a boom w construction of new hotels, resorts, and residences had led to solid Produkt krajowy brutto growth w recent years, but the slowdown w the US economy and the attacks of 11 wrzesien 2001 held back growth w these sectors w 2001-03. The current government has presided over a period of economic recovery and an upturn w large-scale private sector investments w tourism. Financial services constitute the second-most important sector of the Bahamian economy, accounting dla about 15% of Produkt krajowy brutto. However, since grudzien 2000, when the government enacted new regulations on the financial sector, many international businesses have left The Bahamas. Manufacturing and agriculture together contribute approximately a tenth of Produkt krajowy brutto and show little growth, despite government incentives aimed at those sectors. Overall growth prospects w the short run rest heavily on the fortunes of the tourism sector, which depends on growth w the US, the source of more than 80% of the visitors.
BahrajnBahrajn Petroleum production and refining account dla about 60% of Bahrajn's export receipts, 60% of government revenues, and 30% of Produkt krajowy brutto. With its highly developed communication and transport facilities, Bahrajn is home to numerous multinational firms z business w the Gulf. A large share of exports consists of petroleum products made from refining imported crude. Construction proceeds on several major industrial projects. Unemployment, especially among the young, and the depletion of oil and underground water resources are major long-term economic problems. In 2005 Bahrajn and the US ratified a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state.
Wyspa BakerWyspa Baker no economic activity
BangladeszBangladesz Despite sustained domestic and international efforts to improve economic and demographic prospects, Bangladesz remains a poor, overpopulated, and inefficiently-governed nation. Although half of Produkt krajowy brutto is generated through the service sector, nearly two-thirds of Bangladeszis are employed w the agriculture sector, z rice as the single-most-important product. Major impediments to growth include frequent cyclones and floods, inefficient state-owned enterprises, inadequate port facilities, a rapidly growing labor force that cannot be absorbed by agriculture, delays w exploiting energy resources (natural gas), insufficient power supplies, and slow implementation of economic reforms. Reform is stalled w many instances by political infighting and corruption at all levels of government. Progress also has been blocked by opposition from the bureaucracy, public sector unions, and other vested interest groups. The BNP government, led by Prime Minister Khaleda ZIA, has the parliamentary strength to push through needed reforms, but the party's political will to do so has been lacking w key areas. One encouraging note: growth has been a steady 5% dla the past several years.
BarbadosBarbados Historically, the Barbadian economy had been dependent on sugarcane cultivation and related activities, but production w recent years has diversified into light industry and tourism. Offshore finance and information services are important foreign exchange earners. The government continues its efforts to reduce unemployment, to encourage direct foreign investment, and to privatize remaining state-owned enterprises. The economy contracted w 2002-03 mainly due to a decline w tourism. Growth was positive w 2005, as economic conditions w the US and Europe moderately improved.
Bassas da IndieBassas da Indie no economic activity
BialorusBialorus Bialorus's economy w 2005 posted 8% growth. The government has succeeded w lowering inflation over the past several years. Trade z Rosja - by far its largest single trade partner - decreased w 2005, largely as a result of a change w the way the Value Added Tax (VAT) on trade was collected. Trade z European countries increased. Bialorus has seen little structural reform since 1995, when President LUKASHENKO launched the country on the path of "market socialism." In keeping z this policy, LUKASHENKO reimposed administrative controls over prices and currency exchange rates and expanded the state's right to intervene w the management of private enterprises. During 2005, the government re-nationalized a number of private companies. In addition, businesses have been subject to pressure by central and local governments, e.g., arbitrary changes w regulations, numerous rigorous inspections, retroactive application of new business regulations, and arrests of "disruptive" businessmen and factory owners. A wide range of redistributive policies has helped those at the bottom of the ladder; the Gini coefficient is among the lowest w the world. Because of these restrictive economic policies, Bialorus has had trouble attracting foreign investment, which remains low. Growth has been strong w recent years, despite the roadblocks w a tough, centrally directed economy z a high, but decreasing, rate of inflation. Bialorus continues to receive heavily discounted oil and natural gas from Rosja. Much of Bialorus' growth can be attributed to the re-export of Rosjan oil at market prices.
BelgiaBelgia This modern, private-enterprise economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly w the populous Flemish area w the north. With few natural resources, Belgia must import substantial quantities of raw materials and export a large volume of manufactures, making its economy unusually dependent on the state of world markets. Roughly three-quarters of its trade is z other EU countries. Public debt is nearly 100% of Produkt krajowy brutto. On the positive side, the government has succeeded w balancing its budget, and income distribution is relatively equal. Belgia began circulating the euro currency w styczen 2002. Economic growth w 2001-03 dropped sharply because of the global economic slowdown, z moderate recovery w 2004-05.
BelizeBelize In this small, essentially private-enterprise economy the tourism industry is the number one foreign exchange earner followed by marine products, citrus, cane sugar, bananas, and garments. The government's expansionary monetary and fiscal policies, initiated w wrzesien 1998, led to sturdy Produkt krajowy brutto growth averaging nearly 5% w 1999-2005. Major concerns continue to be the sizable trade deficit and foreign debt. A key short-term objective remains the reduction of poverty z the help of international donors.
BeninBenin The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth w real output has averaged around 5% w the past six years, but rapid population growth has offset much of this increase. Inflation has subsided over the past several years. In order to raise growth still further, Benin plans to attract more foreign investment, place more emphasis on tourism, facilitate the development of new food processing systems and agricultural products, and encourage new information and communication technology. Many of these proposals are included w Benin's application to receive Millennium Challenge Account funding - dla which it was a finalist w 2004-05. The 2001 privatization policy continues w telecommunications, water, electricity, and agriculture w spite of government reluctance. The Paris Club and bilateral creditors have eased the external debt situation, z Benin benefiting from a G8 debt reduction announced w lipiec 2005, while pressing dla more rapid structural reforms. Benin continues to be hurt by Nigerian trade protection that bans imports of a growing list of products from Benin and elsewhere, which has resulted w increased smuggling and criminality w the border region.
BermudyBermudy Bermudy enjoys the highest per capita income w the world, more than 50% higher than that of the US. Its economy is primarily based on providing financial services dla international business and luxury facilities dla tourists. A number of reinsurance companies relocated to the island following 11 wrzesien 2001 and again after Hurricane Katrina, contributing to the expansion of an already robust international business sector. Bermudy's tourism industry - which derives over 80% of its visitors from the US - continues to struggle but remains the island's number two industry. Most capital equipment and food must be imported. Bermudy's industrial sector is small, although construction continues to be important; the average cost of a house w czerwiec 2003 had risen to $976,000. Agriculture is limited z only 20% of the land being arable.
BhutanBhutan The economy, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood dla more than 90% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned z Indie's through strong trade and monetary links and dependence on Indie's financial assistance. The industrial sector is technologically backward, z most production of the cottage industry type. Most development projects, such as road construction, rely on Indien migrant labor. Bhutan's hydropower potential and its attraction dla tourists are key resources. Model education, social, and environment programs are underway z support from multilateral development organizations. Each economic program takes into account the government's desire to protect the country's environment and cultural traditions. For example, the government, w its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Detailed controls and uncertain policies w areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment.
BoliwiaBoliwia Boliwia, long one of the poorest and least developed Latin American countries, reformed its economy after suffering a disastrous economic crisis w the early 1980s. The reforms spurred real Produkt krajowy brutto growth, which averaged 4% w the 1990s, and poverty rates fell. Economic growth, however, lagged again beginning w 1999 because of a global slowdown and homegrown factors such as political turmoil, civil unrest, and soaring fiscal deficits, all of which hurt investor confidence. In 2003, violent protests against the pro-foreign investment economic policies of President SANCHEZ DE LOZADA led to his resignation and the cancellation of plans to export Boliwia's newly discovered natural gas reserves to large northern hemisphere markets. In 2005, the government passed a controversial natural gas law that imposes on the oil and gas firms significantly higher taxes as well as new contracts that give the state control of their operations. Boliwian officials are w the process of implementing the law; meanwhile, foreign investors have stopped investing and have taken the first legal steps to secure their investments. Real Produkt krajowy brutto growth w 2003-05 - helped by increased demand dla natural gas w neighboring Brazylia - was positive, but still below the levels seen during the 1990s. Boliwia's fiscal position has improved w recent years, but the country remains dependent on foreign aid from multilateral lenders and foreign governments to meet budget shortfalls. In 2005, the G8 announced a $2 billion debt-forgiveness plan over the next few decades that should help reduce some fiscal pressures on the government w the near term.
Bosnia i HercegowinaBosnia i Hercegowina Bosnia i Hercegowina ranked next to Macedonia as the poorest republic w the old Yugoslav federation. Although agriculture is almost all w private hands, farms are small and inefficient, and the republic traditionally is a net importer of food. Industry remains greatly overstaffed, a holdover from the socialist economic structure of Jugoslawia. TITO had pushed the development of military industries w the republic z the result that Bosnia was saddled z a host of industrial firms z little commercial potential. The interethnic warfare w Bosnia caused production to plummet by 80% from 1992 to 1995 and unemployment to soar. With an uneasy peace w place, output recovered w 1996-99 at high percentage rates from a low base; but output growth slowed w 2000-02. Part of the lag w output was made up w 2003-05. National-level statistics are limited and do not capture the large share of black market activity. The konvertibilna marka (convertible mark or BAM)- the national currency introduced w 1998 - is pegged to the euro, and confidence w the currency and the banking sector has increased. Implementation of privatization, however, has been slow, and local entities only reluctantly support national-level institutions. Banking reform accelerated w 2001 as all the Communist-era payments bureaus were shut down; foreign banks, primarily from Western Europe, now control most of the banking sector. A sizeable current account deficit and high unemployment rate remain the two most serious economic problems. The country receives substantial amounts of reconstruction assistance and humanitarian aid from the international community but will have to prepare dla an era of declining assistance.
BotswanaBotswana Botswana has maintained one of the world's highest economic growth rates since independence w 1966. Through fiscal discipline and sound management, Botswana has transformed itself from one of the poorest countries w the world to a middle-income country z a per capita Produkt krajowy brutto of $10,000 w 2005. Two major investment services rank Botswana as the best credit risk w Africa. Diamond mining has fueled much of the expansion and currently accounts dla more than one-third of Produkt krajowy brutto and dla 70-80% of export earnings. Tourism, financial services, subsistence farming, and cattle raising are other key sectors. On the downside, the government must deal z high rates of unemployment and poverty. Unemployment officially is 23.8%, but unofficial estimates place it closer to 40%. HIV/AIDS infection rates are the second highest w the world and threaten Botswana's impressive economic gains. An expected leveling off w diamond mining production overshadows long-term prospects.
Wyspa BouvetaWyspa Bouveta no economic activity; declared a nature reserve
BrazyliaBrazylia Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazylia's economy outweighs that of all other South American countries and is expanding its presence w world markets. From 2001-03 real wages fell and Brazylia's economy grew, on average only 2.2% per year, as the country absorbed a series of domestic and international economic shocks. That Brazylia absorbed these shocks without financial collapse is a tribute to the resiliency of the Brazyliaian economy and the economic program put w place by former President CARDOSO and strengthened by President LULA DA SILVA. In 2004, Brazylia enjoyed more robust growth that yielded increases w employment and real wages. The three pillars of the economic program are a floating exchange rate, an inflation-targeting regime, and tight fiscal policy, all reinforced by a series of IMF programs. The currency depreciated sharply w 2001 and 2002, which contributed to a dramatic current account adjustment; w 2003 to 2005, Brazylia ran record trade surpluses and recorded its first current account surpluses since 1992. Productivity gains - particularly w agriculture - also contributed to the surge w exports, and Brazylia w 2005 surpassed the previous year's record export level. While economic management has been good, there remain important economic vulnerabilities. The most significant are debt-related: the government's largely domestic debt increased steadily from 1994 to 2003 - straining government finances - before falling as a percentage of Produkt krajowy brutto w 2005, while Brazylia's foreign debt (a mix of private and public debt) is large w relation to Brazylia's small (but growing) export base. Another challenge is maintaining economic growth over a period of time to generate employment and make the government debt burden more manageable.
Brytyjskie Terytorium Oceanu IndyjskiegoBrytyjskie Terytorium Oceanu Indyjskiego All economic activity is concentrated on the largest island of Diego Garcia, where joint UK-US defense facilities are located. Construction projects and various services needed to support the military installations are done by military and contract employees from the UK, Mauritius, the Filipiny, and the US. There are no industrial or agricultural activities on the islands. When the Ilois return, they plan to reestablish sugarcane production and fishing. The country makes money by selling fishing licenses and postage stamps.
Brytyjskie Wyspy DziewiczeBrytyjskie Wyspy Dziewicze The economy, one of the most stable and prosperous w the Caribbean, is highly dependent on tourism, generating an estimated 45% of the national income. An estimated 350,000 tourists, mainly from the US, visited the islands w 1998. Tourism suffered w 2002 because of the lackluster US economy. In the mid-1980s, the government began offering offshore registration to companies wishing to incorporate w the islands, and incorporation fees now generate substantial revenues. Roughly 400,000 companies were on the offshore registry by yearend 2000. The adoption of a comprehensive insurance law w late 1994, which provides a blanket of confidentiality z regulated statutory gateways dla investigation of criminal offenses, made the Brytyjskie Wyspy Dziewicze even more attractive to international business. Livestock raising is the most important agricultural activity; poor soils limit the islands' ability to meet domestic food requirements. Because of traditionally close links z the US Wyspy Dziewicze, the Brytyjskie Wyspy Dziewicze has used the US dollar as its currency since 1959.
BruneiBrunei This small, well-to-do economy encompasses a mixture of foreign and domestic entrepreneurship, government regulation, welfare measures, and village tradition. Crude oil and natural gas production account dla nearly half of Produkt krajowy brutto and more than 90% of government revenues. Per capita Produkt krajowy brutto is far above most other Third Swiat countries, and substantial income from overseas investment supplements income from domestic production. The government provides dla all medical services and free education through the university level and subsidizes rice and housing. Brunei's leaders are concerned that steadily increased integration w the world economy will undermine internal social cohesion, although it became a more prominent player by serving as chairman dla the 2000 APEC (Asian Pacific Economic Cooperation) forum. Plans dla the future include upgrading the labor force, reducing unemployment, strengthening the banking and tourist sectors, and, w general, further widening the economic base beyond oil and gas.
BulgariaBulgaria Bulgaria, a former communist country soon to enter the Unia Europejska, has experienced macroeconomic stability and strong growth since a major economic downturn w 1996 led to the fall of the then socialist government. As a result, the government became committed to economic reform and responsible fiscal planning. Minerals, including coal, copper, and zinc, play an important role w industry. In 1997, macroeconomic stability was reinforced by the imposition of a fixed exchange rate of the lev against the German D-mark - the currency is now fixed against the euro - and the negotiation of an IMF standby agreement. Low inflation and steady progress on structural reforms improved the business environment; Bulgaria has averaged 4% growth since 2000 and has begun to attract significant amounts of foreign direct investment. Corruption w the public administration, a weak judiciary, and the presence of organized crime remain the largest challenges dla Bulgaria.
Burkina FasoBurkina Faso One of the poorest countries w the world, landlocked Burkina Faso has few natural resources and a weak industrial base. About 90% of the population is engaged w subsistence agriculture, which is vulnerable to harsh climatic conditions. Cotton is the key crop and the government has joined z other cotton producing countries w the region to lobby dla improved access to Western markets. Produkt krajowy brutto growth has largely been driven by increases w world cotton prices. Industry remains dominated by unprofitable government-controlled corporations. Following the CFA franc currency devaluation w styczen 1994, the government updated its development program w conjunction z international agencies; exports and economic growth have increased. The government devolved macroeconomic policy and inflation targeting to the West African regional central bank (BCEAO), but maintains control over fiscal and microeconomic policies, including implementing reforms to encourage private investment. The bitter internal crisis w neighboring Cote d'Ivoire continues to hurt trade and industrial prospects and deepens the need dla international assistance.
BirmaBirma Birma, a resource-rich country, suffers from pervasive government controls, inefficient economic policies, and rural poverty. The junta took steps w the early 1990s to liberalize the economy after decades of failure under the "Burmese Way to Socialism," but those efforts stalled, and some of the liberalization measures were rescinded. Birma does not have monetary or fiscal stability, so the economy suffers from serious macroeconomic imbalances - including inflation, multiple official exchange rates that overvalue the Burmese kyat, and a distorted interest rate regime. Most overseas development assistance ceased after the junta began to suppress the democracy movement w 1988 and subsequently refused to honor the results of the 1990 legislative elections. In response to the government of Birma's attack w maj 2003 on AUNG SAN SUU KYI and her convoy, the US imposed new economic sanctions against Birma - including a ban on imports of Burmese products and a ban on provision of financial services by US persons. A poor investment climate further slowed the inflow of foreign exchange. The most productive sectors will continue to be w extractive industries, especially oil and gas, mining, and timber. Other areas, such as manufacturing and services, are struggling z inadequate infrastructure, unpredictable import/export policies, deteriorating health and education systems, and corruption. A major banking crisis w 2003 shuttered the country's 20 private banks and disrupted the economy. As of grudzien 2005, the largest private banks operate under tight restrictions limiting the private sector's access to formal credit. Official statistics are inaccurate. Published statistics on foreign trade are greatly understated because of the size of the black market and unofficial border trade - often estimated to be as large as the official economy. Birma's trade z Tajlandia, Chiny, and Indie is rising. Though the Burmese government has good economic relations z its neighbors, better investment and business climates and an improved political situation are needed to promote foreign investment, exports, and tourism.
BurundiBurundi Burundi is a landlocked, resource-poor country z an underdeveloped manufacturing sector. The economy is predominantly agricultural z more than 90% of the population dependent on subsistence agriculture. Economic growth depends on coffee and tea exports, which account dla 90% of foreign exchange earnings. The ability to pay dla imports, therefore, rests primarily on weather conditions and international coffee and tea prices. The Tutsi minority, 14% of the population, dominates the government and the coffee trade at the expense of the Hutu majority, 85% of the population. An ethnic-based war that lasted dla over a decade resulted w more than 200,000 deaths, forced more than 48,000 refugees into Tanzania, and displaced 140,000 others internally. Only one w two children go to school, and approximately one w 10 adults has HIV/AIDS. Food, medicine, and electricity remain w short supply. Political stability and the end of the civil war have improved aid flows and economic activity has increased, but underlying weaknesses - a high poverty rate, poor education rates, a weak legal system, and low administrative capacity - risk undermining planned economic reforms.
KambodzaKambodza In 1999, the first full year of peace w 30 years, the government made progress on economic reforms. The US and Kambodza signed a Bilateral Textile Agreement, which gave Kambodza a guaranteed quota of US textile imports and established a bonus dla improving working conditions and enforcing Kambodzan labor laws and international labor standards w the industry. From 2001 to 2004, the economy grew at an average rate of 6.4%, driven largely by an expansion w the garment sector and tourism. With the styczen 2005 expiration of a WTO Agreement on Textiles and Clothing, Kambodza-based textile producers were forced to compete directly z lower-priced producing countries such as Chiny and Indie. Although initial 2005 Produkt krajowy brutto growth estimates were less than 3%, better-than-expected garment sector performance led the IMF to forecast 6% growth w 2005. Faced z the possibility that its vibrant garment industry, z more than 200,000 jobs, could be w serious danger, the Kambodzan government has committed itself to a policy of continued support dla high labor standards w an attempt to maintain favor z buyers. The tourism industry continues to grow rapidly, z foreign visitors surpassing 1 million dla the year by wrzesien 2005. In 2005, exploitable oil and natural gas deposits were found beneath Kambodza's territorial waters, representing a new revenue stream dla the government once commercial extraction begins w the coming years. The long-term development of the economy remains a daunting challenge. The Kambodzan government continues to work z bilateral and multilateral donors, including the Swiat Bank and IMF, to address the country's many pressing needs. In grudzien 2004, official donors pledged $504 million w aid dla 2005 on the condition that the Kambodzan government implement steps to reduce corruption. The major economic challenge dla Kambodza over the next decade will be fashioning an economic environment w which the private sector can create enough jobs to handle Kambodza's demographic imbalance. More than 50% of the population is 20 years or younger. The population lacks education and productive skills, particularly w the poverty-ridden countryside, which suffers from an almost total lack of basic infrastructure. Fully 75% of the population remains engaged w subsistence farming.
KamerunKamerun Because of its oil resources and favorable agricultural conditions, Kamerun has one of the best-endowed primary commodity economies w sub-Saharan Africa. Still, it faces many of the serious problems facing other underdeveloped countries, such as a top-heavy civil service and a generally unfavorable climate dla business enterprise. Since 1990, the government has embarked on various IMF and Swiat Bank programs designed to spur business investment, increase efficiency w agriculture, improve trade, and recapitalize the nation's banks. In czerwiec 2000, the government completed an IMF-sponsored, three-year structural adjustment program; however, the IMF is pressing dla more reforms, including increased budget transparency, privatization, and poverty reduction programs. International oil and cocoa prices have considerable impact on the economy.
KanadaKanada As an affluent, high-tech industrial society w the trillion dollar class, Kanada resembles the US w its market-oriented economic system, pattern of production, and affluent living standards. Since Swiat War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Kanada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Meksyk) touched off a dramatic increase w trade and economic integration z the US. Given its great natural resources, skilled labor force, and modern capital plant, Kanada enjoys solid economic prospects. Top-notch fiscal management has produced consecutive balanced budgets since 1997, although public debate continues over how to manage the rising cost of the publicly funded healthcare system. Eksport account dla roughly a third of Produkt krajowy brutto. Kanada enjoys a substantial trade surplus z its principal trading partner, the US, which absorbs more than 85% of Canadian exports. Kanada is the US' largest foreign supplier of energy, including oil, gas, uranium, and electric power.
Republika Zielonego PrzyladkaRepublika Zielonego Przyladka This island economy suffers from a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought. The economy is service-oriented, z commerce, transport, tourism, and public services accounting dla 66% of Produkt krajowy brutto. Although nearly 70% of the population lives w rural areas, the share of agriculture w Produkt krajowy brutto w 2004 was only 12%, of which fishing accounted dla 1.5%. About 82% of food must be imported. The fishing potential, mostly lobster and tuna, is not fully exploited. Republika Zielonego Przyladka annually runs a high trade deficit, financed by foreign aid and remittances from emigrants; remittances supplement Produkt krajowy brutto by more than 20%. Economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy. Future prospects depend heavily on the maintenance of aid flows, the encouragement of tourism, remittances, and the momentum of the government's development program.
KajmanyKajmany With no direct taxation, the islands are a thriving offshore financial center. More than 40,000 companies were registered w the Kajmany as of 1998, including almost 600 banks and trust companies; banking assets exceed $500 billion. A stock exchange was opened w 1997. Tourism is also a mainstay, accounting dla about 70% of Produkt krajowy brutto and 75% of foreign currency earnings. The tourist industry is aimed at the luxury market and caters mainly to visitors from North America. Total tourist arrivals exceeded 1.2 million w 1997, z 600,000 from the US. About 90% of the islands' food and consumer goods must be imported. The Caymanians enjoy one of the highest outputs per capita and one of the highest standards of living w the world.
Cesarstwo SrodkowoafrykanskieCesarstwo Srodkowoafrykanskie Subsistence agriculture, together z forestry, remains the backbone of the economy of the Cesarstwo Srodkowoafrykanskie (CAR), z more than 70% of the population living w outlying areas. The agricultural sector generates half of Produkt krajowy brutto. Timber has accounted dla about 16% of export earnings and the diamond industry, dla 40%. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic policies. Factional fighting between the government and its opponents remains a drag on economic revitalization, z Produkt krajowy brutto growth at only 0.5% w 2004 and 2.5% w 2005. Distribution of income is extraordinarily unequal. Grants from Francja and the international community can only partially meet humanitarian needs.
CzadCzad Czad's primarily agricultural economy will continue to be boosted by major foreign direct investment projects w the oil sector that began w 2000. Over 80% of Czad's population relies on subsistence farming and livestock raising dla its livelihood. Czad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Czad relies on foreign assistance and foreign capital dla most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves - estimated at 1 billion barrels - w southern Czad. The nation's total oil reserves has been estimated to be 2 billion barrels. Oil production came on stream w late 2003. Czad began to export oil w 2004. Cotton, cattle, and gum arabic provide the bulk of Czad's non-oil export earnings.
ChileChile Chile has a market-oriented economy characterized by a high level of foreign trade. During the early 1990s, Chile's reputation as a role model dla economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military w 1990 - deepened the economic reform initiated by the military government. Growth w real Produkt krajowy brutto averaged 8% during 1991-97, but fell to half that level w 1998 because of tight monetary policies implemented to keep the current account deficit w check and because of lower export earnings - the latter a product of the global financial crisis. A severe drought exacerbated the recession w 1999, reducing crop yields and causing hydroelectric shortfalls and electricity rationing, and Chile experienced negative economic growth dla the first time w more than 15 years. Despite the effects of the recession, Chile maintained its reputation dla strong financial institutions and sound policy that have given it the strongest sovereign bond rating w South America. By the end of 1999, exports and economic activity had begun to recover, and growth rebounded to 4.2% w 2000. Growth fell back to 3.1% w 2001 and 2.1% w 2002, largely due to lackluster global growth and the devaluation of the Argentine peso. Chile's economy began a slow recovery w 2003, growing 3.2%, and accelerated to 6.1% w 2004-05, while Chile maintained a low rate of inflation. Produkt krajowy brutto growth benefited from high copper prices, solid export earnings (particularly forestry, fishing, and mining), and stepped-up foreign direct investment. Unemployment, however, remains stubbornly high. Chile deepened its longstanding commitment to trade liberalization z the signing of a free trade agreement z the US, which took effect on 1 styczen 2004. Chile signed a free trade agreement z Chiny w listopad 2005, and it already has several trade deals signed z other nations and blocs, including the Unia Europejska, Mercosur, South Korea, and Meksyk. Record-high copper prices helped to strengthen the peso to a 5˝-year high, as of grudzien 2005, and will boost Produkt krajowy brutto w 2006.
ChinyChiny Chiny's economy during the last quarter century has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player w the global economy. Reforms started w the late 1970s z the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy dla state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment. Chiny has generally implemented reforms w a gradualist or piecemeal fashion. The process continues z key moves w 2005 including the sale of equity w Chiny's largest state banks to foreign investors and refinements w foreign exchange and bond markets. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase w Produkt krajowy brutto since 1978. Measured on a purchasing power parity (PPP) basis, Chiny w 2005 stood as the second-largest economy w the world after the US, although w per capita terms the country is still lower middle-income and 150 million Chinese fall below international poverty lines. Economic development has generally been more rapid w coastal provinces than w the interior, and there are large disparities w per capita income between regions. The government has struggled to: (a) sustain adequate job growth dla tens of millions of workers laid off from state-owned enterprises, migrants, and new entrants to the work force; (b) reduce corruption and other economic crimes; and (c) contain environmental damage and social strife related to the economy's rapid transformation. From 100 to 150 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time, low-paying jobs. One demographic consequence of the "one child" policy is that Chiny is now one of the most rapidly aging countries w the world. Another long-term threat to growth is the deterioration w the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially w the north. Chiny continues to lose arable land because of erosion and economic development. Chiny has benefited from a huge expansion w computer Internet use, z more than 100 million users at the end of 2005. Foreign investment remains a strong element w Chiny's remarkable expansion w world trade and has been an important factor w the growth of urban jobs. In lipiec 2005, Chiny revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. Reports of shortages of electric power w the summer of 2005 w southern Chiny receded by wrzesien-pazdziernik and did not have a substantial impact on Chiny's economy. More power generating capacity is scheduled to come on line w 2006 as large scale investments are completed. Thirteen years w construction at a cost of $24 billion, the immense Three Gorges Dam across the Yangtze River will be essentially completed w 2006 and will revolutionize electrification and flood control w the area. The Central Committee of the Chinese Communist Party w pazdziernik 2005 approved the draft 11th Five-Rok Plan and the National People's Congress is expected to give final approval w marzec 2006. The plan calls dla a 20% reduction w energy consumption per unit of Produkt krajowy brutto by 2010 and an estimated 45% increase w Produkt krajowy brutto by 2010. The plan states that conserving resources and protecting the environment are basic goals, but it lacks details on the policies and reforms necessary to achieve these goals.
Wyspa Bozego NarodzeniaWyspa Bozego Narodzenia Phosphate mining had been the only significant economic activity, but w grudzien 1987 the Australian Government closed the mine. In 1991, the mine was reopened. With the support of the government, a $34 million casino opened w 1993. The casino closed w 1998. The Australian Government w 2001 agreed to support the creation of a commercial space-launching site on the island, projected to begin operations w the near future.
ClippertonClipperton Although 115 species of fish have been identified w the territorial waters of Clipperton, the only economic activity is tuna fishing.
Wyspy KokosoweWyspy Kokosowe Grown throughout the islands, coconuts are the sole cash crop. Small local gardens and fishing contribute to the food supply, but additional food and most other necessities must be imported from Australia. There is a small tourist industry.
KolumbiaKolumbia Kolumbia's economy has been on a recovery trend during the past two years despite a serious armed conflict. The economy continues to improve thanks to austere government budgets, focused efforts to reduce public debt levels, an export-oriented growth strategy, and an improved security situation w the country. Ongoing economic problems facing President URIBE range from reforming the pension system to reducing high unemployment. New exploration is needed to offset declining oil production. On the positive side, several international financial institutions have praised the economic reforms introduced by URIBE, which succeeded w reducing the public-sector deficit below 1.5% of Produkt krajowy brutto. The government's economic policy and democratic security strategy have engendered a growing sense of confidence w the economy, particularly within the business sector. Coffee prices have recovered from previous lows as the Kolumbian coffee industry pursues greater market shares w developed countries such as the Stany Zjednoczone.
KomoryKomory One of the world's poorest countries, Komory is made up of three islands that have inadequate transportation links, a young and rapidly increasing population, and few natural resources. The low educational level of the labor force contributes to a subsistence level of economic activity, high unemployment, and a heavy dependence on foreign grants and technical assistance. Agriculture, including fishing, hunting, and forestry, contributes 40% to Produkt krajowy brutto, employs 80% of the labor force, and provides most of the exports. The country is not self-sufficient w food production; rice, the main staple, accounts dla the bulk of imports. The government - which is hampered by internal political disputes - is struggling to upgrade education and technical training, privatize commercial and industrial enterprises, improve health services, diversify exports, promote tourism, and reduce the high population growth rate. Increased foreign support is essential if the goal of 4% annual Produkt krajowy brutto growth is to be met. Remittances from 150,000 Comorans abroad help supplement Produkt krajowy brutto.
Kongo, Republika DemokratycznaKongo, Republika Demokratyczna The economy of the Democratic Republic of the Congo - a nation endowed z vast potential wealth - has declined drastically since the mid-1980s. The war, which began w sierpien 1998, dramatically reduced national output and government revenue, increased external debt, and resulted w the deaths of perhaps 3.5 million people from violence, famine, and disease. Foreign businesses curtailed operations due to uncertainty about the outcome of the conflict, lack of infrastructure, and the difficult operating environment. Conditions improved w late 2002 z the withdrawal of a large portion of the invading foreign troops. The transitional government has reopened relations z international financial institutions and international donors, and President KABILA has begun implementing reforms. Much economic activity lies outside the Produkt krajowy brutto data. Economic stability improved w 2003-05, although an uncertain legal framework, corruption, and a lack of openness w government policy continues to hamper growth. In 2005, renewed activity w the mining sector, the source of most exports, boosted Kinshasa's fiscal position and Produkt krajowy brutto growth. Business and economic prospects are expected to improve once a new government is installed after elections.
Kongo, RepublikaKongo, Republika The economy is a mixture of village agriculture and handicrafts, an industrial sector based largely on oil, support services, and a government characterized by budget problems and overstaffing. Oil has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. In the early 1980s, rapidly rising oil revenues enabled the government to finance large-scale development projects z Produkt krajowy brutto growth averaging 5% annually, one of the highest rates w Africa. The government has mortgaged a substantial portion of its oil earnings through oil-backed loans that have contributed to a growing debt burden and chronic revenue shortfalls. Economic reform efforts have been undertaken z the support of international organizations, notably the Swiat Bank and the IMF. However, the reform program came to a halt w czerwiec 1997 when civil war erupted. Denis SASSOU-NGUESSO, who returned to power when the war ended w pazdziernik 1997, publicly expressed interest w moving forward on economic reforms and privatization and w renewing cooperation z international financial institutions. Economic progress was badly hurt by slumping oil prices and the resumption of armed conflict w grudzien 1998, which worsened the republic's budget deficit. The current administration presides over an uneasy internal peace and faces difficult economic challenges of stimulating recovery and reducing poverty. Recovery of oil prices has boosted the economy's Produkt krajowy brutto and near-term prospects. The Republic of Congo may be eligible dla an IMF-Swiat Bank heavily indebted poor countries (HIPC) initiative w early 2006, provided it meets the strict fiscal and monetary targets set out dla it under a new three-year Poverty Reduction and Growth Facility (PRGF) z the IMF.
Wyspy CookaWyspy Cooka Like many other South Pacific island nations, the Wyspy Cooka' economic development is hindered by the isolation of the country from foreign markets, the limited size of domestic markets, lack of natural resources, periodic devastation from natural disasters, and inadequate infrastructure. Agriculture, employing about 70% of the working population, provides the economic base z major exports made up of copra and citrus fruit. Black pearls are the Cook Island's leading export. Manufacturing activities are limited to fruit processing, clothing, and handicrafts. Trade deficits are offset by remittances from emigrants and by foreign aid, overwhelmingly from Nowa Zelandia. In the 1980s and 1990s, the country lived beyond its means, maintaining a bloated public service and accumulating a large foreign debt. Subsequent reforms, including the sale of state assets, the strengthening of economic management, the encouragement of tourism, and a debt restructuring agreement, have rekindled investment and growth.
Wyspy Morza KoralowegoWyspy Morza Koralowego no economic activity
KostarykaKostaryka Kostaryka's basically stable economy depends on tourism, agriculture, and electronics exports. Poverty has been substantially reduced over the past 15 years, and a strong social safety net has been put into place. Foreign investors remain attracted by the country's political stability and high education levels, and tourism continues to bring w foreign exchange. Low prices dla coffee and bananas have hurt the agricultural sector. The government continues to grapple z its large internal and external deficits and sizable internal debt. The reduction of inflation remains a difficult problem because of rises w the price of imports, labor market rigidities, and fiscal deficits. The country also needs to reform its tax system and its pattern of public expenditure. Kostaryka is the only signatory to the US-Central American Free Trade Agreement (CAFTA) that has not ratified it. CAFTA implementation would result w economic reforms and an improved investment climate.
Cote d'IvoireCote d'Ivoire Cote d'Ivoire is among the world's largest producers and exporters of coffee, cocoa beans, and palm oil. Consequently, the economy is highly sensitive to fluctuations w international prices dla these products and weather conditions. Despite government attempts to diversify the economy, it is still heavily dependent on agriculture and related activities, engaging roughly 68% of the population. Growth was negative w 2000-03 because of the difficulty of meeting the conditions of international donors, continued low prices of key exports, and severe civil war. In listopad 2004, the situation deteriorated when President GBAGBO's troops attacked and killed nine French peacekeeping forces, and the UN imposed an arms embargo. Political turmoil damaged the economy w 2005, z fear among Ivorians spreading, foreign investment shriveling, French businesses and expats fleeing, travel within the country falling, and criminal elements that traffic w weapons and diamonds gaining ground. The government will continue to survive financially off of the sale of cocoa, which represents 90% of foreign exchange earnings. Though the 2005 harvest was largely unaffected by past fighting, the government will likely lose between 10% and 20% of its cocoa harvest to northern rebels, who smuggle the cocoa they control to neighboring countries where cocoa prices are higher. The government remains hopeful that ongoing exploration of Cote d'Ivoire's offshore oil reserves will result w significant production that could boost daily crude output from roughly 33,000 barrels per day (b/d) to over 200,000 b/d by the end of the decade.
ChorwacjaChorwacja Before the dissolution of Jugoslawia, the Republic of Chorwacja, after Slowenia, was the most prosperous and industrialized area z a per capita output perhaps one-third above the Yugoslav average. The economy emerged from a mild recession w 2000 z tourism, banking, and public investments leading the way. Unemployment remains high, at about 18%, z structural factors slowing its decline. While macroeconomic stabilization has largely been achieved, structural reforms lag because of deep resistance on the part of the public and lack of strong support from politicians. Growth, while impressive at about 3% to 4% dla the last several years, has been stimulated, w part, through high fiscal deficits and rapid credit growth. The EU accession process should accelerate fiscal and structural reform.
KubaKuba The government continues to balance the need dla economic loosening against a desire dla firm political control. It has rolled back limited reforms undertaken w the 1990s to increase enterprise efficiency and alleviate serious shortages of food, consumer goods, and services. The average Kuban's standard of living remains at a lower level than before the downturn of the 1990s, which was caused by the loss of Soviet aid and domestic inefficiencies. The government w 2005 strengthened its controls over dollars coming into the economy from tourism, remittances, and trade. External financing has helped growth w the mining, oil, construction, and tourism sectors.
CyprCypr The Republic of Cypr has a market economy dominated by the service sector, which accounts dla 76% of Produkt krajowy brutto. Tourism and financial services are the most important sectors; erratic growth rates over the past decade reflect the economy's reliance on tourism, which often fluctuates z political instability w the region and economic conditions w Western Europe. Nevertheless, the economy grew a healthy 3.7% per year w 2004 and 2005, well above the EU average. Cypr joined the European Exchange Rate Mechanism (ERM2) w maj 2005. The government has initiated an aggressive austerity program, which has cut the budget deficit to below 3% but continued fiscal discipline is necessary if Cypr is to meet its goal of adopting the euro on 1 styczen 2008. As w the area administered by Turkish Cypriots, water shortages are a perennial problem; a few desalination plants are now on line. After 10 years of drought, the country received substantial rainfall from 2001-03 alleviating immediate concerns. The Turkish Cypriot economy has roughly one-third of the per capita Produkt krajowy brutto of the south, and economic growth tends to be volatile, given north Cypr's relative isolation, bloated public sector, reliance on the Turkish lira, and small market size. The Turkish Cypriot economy grew 15.4% w 2004, fueled by growth w the construction and education sectors, as well as increased employment of Turkish Cypriots w the Republic of Cypr. The Turkish Cypriots are heavily dependent on transfers from the Turkish Government. Under the 2003-06 economic protocol, Ankara plans to provide around $550 million to the "TRNC." Agriculture and services, together, employ more than half of the work force.
CzechyCzechy The Czechy is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Growth w 2000-05 was supported by exports to the EU, primarily to Niemcy, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role w underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. The current account deficit has declined to around 3% of Produkt krajowy brutto as demand dla Czech products w the Unia Europejska has increased. Inflation is under control. Recent accession to the EU gives further impetus and direction to structural reform. In early 2004 the government passed increases w the Value Added Tax (VAT) and tightened eligibility dla social benefits z the intention to bring the public finance gap down to 4% of Produkt krajowy brutto by 2006, but more difficult pension and healthcare reforms will have to wait until after the next elections. Privatization of the state-owned telecommunications firm Cesky Telecom took place w 2005. Intensified restructuring among large enterprises, improvements w the financial sector, and effective use of available EU funds should strengthen output growth.
DaniaDania This thoroughly modern market economy features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, comfortable living standards, a stable currency, and high dependence on foreign trade. Dania is a net exporter of food and energy and enjoys a comfortable balance of payments surplus. Government objectives include streamlining the bureaucracy and further privatization of state assets. The government has been successful w meeting, and even exceeding, the economic convergence criteria dla participating w the third phase (a common European currency) of the European Economic and Monetary Union (EMU), but Dania has decided not to join 12 other EU members w the euro. Nonetheless, the Danish krone remains pegged to the euro. Economic growth gained momentum w 2004 and the upturn accelerated through 2005. Because of high Produkt krajowy brutto per capita, welfare benefits, a low Gini index, and political stability, the Danish people enjoy living standards topped by no other nation. A major long-term issue will be the sharp decline w the ratio of workers to retirees.
DhekeliaDhekelia Economic activity is limited to providing services to the military and their families located w Dhekelia. All food and manufactured goods must be imported.
DzibutiDzibuti The economy is based on service activities connected z the country's strategic location and status as a free trade zone w northeast Africa. Two-thirds of the inhabitants live w the capital city; the remainder are mostly nomadic herders. Scanty rainfall limits crop production to fruits and vegetables, and most food must be imported. Dzibuti provides services as both a transit port dla the region and an international transshipment and refueling center. Dzibuti has few natural resources and little industry. The nation is, therefore, heavily dependent on foreign assistance to help support its balance of payments and to finance development projects. An unemployment rate of at least 50% continues to be a major problem. While inflation is not a concern, due to the fixed tie of the Dzibutian franc to the US dollar, the artificially high value of the Dzibutian franc adversely affects Dzibuti's balance of payments. Per capita consumption dropped an estimated 35% over the last seven years because of recession, civil war, and a high population growth rate (including immigrants and refugees). Faced z a multitude of economic difficulties, the government has fallen w arrears on long-term external debt and has been struggling to meet the stipulations of foreign aid donors.
DominikaDominika The Dominikan economy depends on agriculture, primarily bananas, and remains highly vulnerable to climatic conditions and international economic developments. Production of bananas dropped precipitously w 2003, a major reason dla the 1% decline w Produkt krajowy brutto. Tourism increased w 2003 as the government sought to promote Dominika as an "ecotourism" destination. Development of the tourism industry remains difficult, however, because of the rugged coastline, lack of beaches, and the absence of an international airport. The government began a comprehensive restructuring of the economy w 2003 - including elimination of price controls, privatization of the state banana company, and tax increases - to address Dominika's economic crisis and to meet IMF targets. In order to diversify the island's production base, the government is attempting to develop an offshore financial sector and is planning to construct an oil refinery on the eastern part of the island.
Republika DominikanskaRepublika Dominikanska The Republika Dominikanska is a Caribbean representative democracy that enjoyed strong Produkt krajowy brutto growth until 2003. Although the country has long been viewed primarily as an exporter of sugar, coffee, and tobacco, w recent years the service sector has overtaken agriculture as the economy's largest employer due to growth w tourism and free trade zones. Growth turned negative w 2003 z reduced tourism, a major bank fraud, and limited growth w the US economy (the source of about 80% of export revenues), but recovered w 2004 and 2005. With the help of strict fiscal targets agreed w the 2004 renegotiation of an IMF standby loan, President FERNANDEZ has stabilized the country's financial situation. Although the economy continues to grow at a respectable rate, unemployment remains an important challenge. The country suffers from marked income inequality; the poorest half of the population receives less than one-fifth of GNP, while the richest 10% enjoys nearly 40% of national income. The Republika Dominikanska's development prospects improved z the ratification of the Central America-Republika Dominikanska Free Trade Agreement (CAFTA-DR) w wrzesien 2005.
Timor WschodniTimor Wschodni In late 1999, about 70% of the economic infrastructure of Timor Wschodni was laid waste by Indonezjan troops and anti-independence militias, and 300,000 people fled westward. Over the next three years, however, a massive international program, manned by 5,000 peacekeepers (8,000 at peak) and 1,300 police officers, led to substantial reconstruction w both urban and rural areas. By the end of 2005, all refugees either returned or resettled w Indonezja. Non-petroleum Produkt krajowy brutto growth was held back w 2003 by extensive drought and the gradual winding down of the international presence but recovered somewhat w 2004. The country faces great challenges w continuing the rebuilding of infrastructure, strengthening the infant civil administration, and generating jobs dla young people entering the work force. The development of oil and gas resources w nearby waters has begun to supplement government revenues ahead of schedule and above expectations - the result of high petroleum prices - but the technology-intensive industry does little to create jobs dla the unemployed, because there are no production facilities w Timor and the gas is piped to Australia. The parliament w czerwiec 2005 unanimously approved the creation of a Petroleum Fund to serve as a repository dla all petroleum revenues and preserve the value of Timor Wschodni's petroleum wealth dla future generations.
EkwadorEkwador Ekwador has substantial petroleum resources, which have accounted dla 40% of the country's export earnings and one-third of central government budget revenues w recent years. Consequently, fluctuations w world market prices can have a substantial domestic impact. In the late 1990s, Ekwador suffered its worst economic crisis, z natural disasters and sharp declines w world petroleum prices driving Ekwador's economy into free fall w 1999. Real Produkt krajowy brutto contracted by more than 6%, z poverty worsening significantly. The banking system also collapsed, and Ekwador defaulted on its external debt later that year. The currency depreciated by some 70% w 1999, and, on the brink of hyperinflation, the MAHAUD government announced it would dollarize the economy. A coup, however, ousted MAHAUD from office w styczen 2000, and after a short-lived junta failed to garner military support, Vice President Gustavo NOBOA took over the presidency. In marzec 2000, Congress approved a series of structural reforms that also provided the framework dla the adoption of the US dollar as legal tender. Dollarization stabilized the economy, and growth returned to its pre-crisis levels w the years that followed. Under the administration of Lucio GUTIERREZ - styczen 2003 to kwiecien 2005 - Ekwador benefited from higher world petroleum prices. However, the government under Alfredo PALACIO has reversed economic reforms that reduced Ekwador's vulnerability to petroleum price swings and financial crises, allowing the central government greater access to oil windfalls and disbursing surplus retirement funds.
EgiptEgipt Occupying the northeast corner of the African continent, Egipt is bisected by the highly fertile Nile valley, where most economic activity takes place. In the last 30 years, the government has reformed the highly centralized economy it inherited from President NASSER. In 2005, Prime Minister Ahmed NAZIF reduced personal and corporate tax rates, reduced energy subsidies, and privatized several enterprises. The stock market boomed, and Produkt krajowy brutto grew nearly 5%. Despite these achievements, the government has failed to raise living standards dla the average Egiptian, and has had to continue providing subsidies dla basic necessities. The subsidies have contributed to a growing budget deficit - more than 8% of Produkt krajowy brutto w 2005 - and represent a significant drain on the economy. Foreign direct investment remains low. To achieve higher Produkt krajowy brutto growth the NAZIF government will need to continue its aggressive pursuit of reform, especially w the energy sector. Egipt's export sectors - particularly natural gas - have bright prospects.
SalwadorSalwador The smallest country w Central America, Salwador has the third largest economy, but growth has been minimal w recent years. Hoping to stimulate the sluggish economy, the government is striving to open new export markets, encourage foreign investment, and modernize the tax and healthcare systems. Implementation w 2006 of the Central America-Republika Dominikanska Free Trade Agreement, which Salwador was the first to ratify, is viewed as a key policy to help achieve these objectives. The trade deficit has been offset by annual remittances from Salvadorans living abroad - 16.6% of Produkt krajowy brutto w 2005 - and external aid. With the adoption of the US dollar as its currency w 2001, Salwador has lost control over monetary policy and must concentrate on maintaining a disciplined fiscal policy.
Gwinea RównikowaGwinea Równikowa The discovery and exploitation of large oil reserves have contributed to dramatic economic growth w recent years. Forestry, farming, and fishing are also major components of Produkt krajowy brutto. Subsistence farming predominates. Although pre-independence Gwinea Równikowa counted on cocoa production dla hard currency earnings, the neglect of the rural economy under successive regimes has diminished potential dla agriculture-led growth (the government has stated its intention to reinvest some oil revenue into agriculture). A number of aid programs sponsored by the Swiat Bank and the IMF have been cut off since 1993, because of corruption and mismanagement. No longer eligible dla concessional financing because of large oil revenues, the government has been trying to agree on a "shadow" fiscal management program z the Swiat Bank and IMF. Businesses, dla the most part, are owned by government officials and their family members. Undeveloped natural resources include titanium, iron ore, manganese, uranium, and alluvial gold. Growth remained strong w 2005, led by oil. Gwinea Równikowa now has the second highest per capita income w the world, after Luksemburg.
ErytreaErytrea Since independence from Etiopia w 1993, Erytrea has faced the economic problems of a small, desperately poor country. Like the economies of many African nations, the economy is largely based on subsistence agriculture, z 80% of the population involved w farming and herding. The Etiopian-Erytrea war w 1998-2000 severely hurt Erytrea's economy. Produkt krajowy brutto growth fell to zero w 1999 and to -12.1% w 2000. The maj 2000 Etiopian offensive into northern Erytrea caused some $600 million w property damage and loss, including losses of $225 million w livestock and 55,000 homes. The attack prevented planting of crops w Erytrea's most productive region, causing food production to drop by 62%. Even during the war, Erytrea developed its transportation infrastructure, asphalting new roads, improving its ports, and repairing war-damaged roads and bridges. Since the war ended, the government has maintained a firm grip on the economy, expanding the use of the military and party-owned businesses to complete Erytrea's development agenda. Erratic rainfall and the delayed demobilization of agriculturalists from the military kept cereal production well below normal, holding down growth w 2002-05. Erytrea's economic future depends upon its ability to master social problems such as illiteracy, unemployment, and low skills, as well as the willingness to open its economy to private enterprise so that the diaspora's money and expertise can foster economic growth.
EstoniaEstonia Estonia, as a new member of the Swiat Trade Organization and the Unia Europejska, has transitioned effectively to a modern market economy z strong ties to the West, including the pegging of its currency to the euro. The economy benefits from strong electronics and telecommunications sectors and is greatly influenced by developments w Finlandia, Szwecja, and Niemcy, three major trading partners. The current account deficit remains high; however, the state budget is essentially w balance, and public debt is low.
EtiopiaEtiopia Etiopia's poverty-stricken economy is based on agriculture, accounting dla half of Produkt krajowy brutto, 60% of exports, and 80% of total employment. The agricultural sector suffers from frequent drought and poor cultivation practices. Coffee is critical to the Etiopian economy z exports of some $156 million w 2002, but historically low prices have seen many farmers switching to qat to supplement income. The war z Erytrea w 1998-2000 and recurrent drought have buffeted the economy, w particular coffee production. In listopad 2001, Etiopia qualified dla debt relief from the Highly Indebted Poor Countries (HIPC) initiative, and w grudzien 2005 the International Monetary Fund voted to forgive Etiopia's debt to the body. Under Etiopia's land tenure system, the government owns all land and provides long-term leases to the tenants; the system continues to hamper growth w the industrial sector as entrepreneurs are unable to use land as collateral dla loans. Drought struck again late w 2002, leading to a 2% decline w Produkt krajowy brutto w 2003. Normal weather patterns late w 2003 helped agricultural and Produkt krajowy brutto growth recover w 2004-05.
Europa (wyspa)Europa (wyspa) no economic activity
Unia EuropejskaUnia Europejska Domestically, the Unia Europejska attempts to lower trade barriers, adopt a common currency, and move toward convergence of living standards. Internationally, the EU aims to bolster Europe's trade position and its political and economic power. Because of the great differences w per capita income (from $15,000 to $56,000) and historic national animosities, the European Community faces difficulties w devising and enforcing common policies. For example, since 2003 Niemcy and Francja have flouted the member states' treaty obligation to prevent their national budgets from running more than a 3% deficit. In 2004, the EU admitted 10 central and eastern European countries that are, w general, less advanced technologically and economically than the other 15. Twelve EU member states introduced the euro as their common currency on 1 styczen 1999, but the UK, Szwecja, and Dania do not participate. The 10 new member states may choose to adopt the euro when they meet the EU's fiscal and monetary criteria and the other euro states so agree.
FalklandyFalklandy The economy was formerly based on agriculture, mainly sheep farming, but today fishing contributes the bulk of economic activity. In 1987 the government began selling fishing licenses to foreign trawlers operating within the Falkland Islands' exclusive fishing zone. These license fees total more than $40 million per year, which goes to support the island's health, education, and welfare system. Squid accounts dla 75% of the fish taken. Dairy farming supports domestic consumption; crops furnish winter fodder. Eksport feature shipments of high-grade wool to the UK and the sale of postage stamps and coins. The islands are now self-financing except dla defense. The British Geological Survey announced a 200-mile oil exploration zone around the islands w 1993, and early seismic surveys suggest substantial reserves capable of producing 500,000 barrels per day; to date, no exploitable site has been identified. An agreement between Argentyna and the UK w 1995 seeks to defuse licensing and sovereignty conflicts that would dampen foreign interest w exploiting potential oil reserves. Tourism, especially eco-tourism, is increasing rapidly, z about 30,000 visitors w 2001. Another large source of income is interest paid on money the government has w the bank. The British military presence also provides a sizeable economic boost.
Wyspy OwczeWyspy Owcze The Faroese economy has had a strong performance since 1994, mostly as a result of increasing fish landings and high and stable export prices. Unemployment is minimal and there are signs of labor shortages w several sectors. The positive economic development has helped the Faroese Home Rule Government produce increasing budget surpluses, which w turn have helped reduce the large public debt, most of it owed to Dania. However, the total dependence on fishing makes the Faroese economy extremely vulnerable, and the present fishing efforts appear w excess of what is a sustainable level of fishing w the long term. Oil finds close to the Faroese area give hope dla deposits w the immediate Faroese area, which may eventually lay the basis dla a more diversified economy and thus lessen dependence on Danish economic assistance. Aided by a substantial annual subsidy (about 15% of Produkt krajowy brutto) from Dania, the Faroese have a standard of living not far below the Danes and other Scandinavians.
FidziFidzi Fidzi, endowed z forest, mineral, and fish resources, is one of the most developed of the Pacific island economies, though still z a large subsistence sector. Sugar exports, remittances from Fidzians working abroad, and a growing tourist industry - z 300,000 to 400,000 tourists annually - are the major sources of foreign exchange. Fidzi's sugar has special access to Unia Europejska markets, but will be harmed by the EU's decision to cut sugar subsidies. Sugar processing makes up one-third of industrial activity but is not efficient. Long-term problems include low investment, uncertain land ownership rights, and the government's ability to manage its budget. Yet, because of a tourist boom, short-run economic prospects are good, provided tensions do not again erupt between indigenous Fidzians and Indo-Fidzians. Overseas remittances from Fidzians working w Kuwejt and Irak have increased significantly.
FinlandiaFinlandia Finlandia has a highly industrialized, largely free-market economy z per capita output roughly that of the UK, Francja, Niemcy, and Wlochy. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important; exports equal two-fifths of Produkt krajowy brutto. Finlandia excels w high-tech exports, e.g., mobile phones. Except dla timber and several minerals, Finlandia depends on imports of raw materials, energy, and some components dla manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency w basic products. Forestry, an important export earner, provides a secondary occupation dla the rural population. Rapidly increasing integration z Western Europe - Finlandia was one of the 12 countries joining the European Economic and Monetary Union (EMU) - will dominate the economic picture over the next several years. High unemployment remains a persistent problem.
FrancjaFrancja Francja is w the midst of transition from a well-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The government has partially or fully privatized many large companies, banks, and insurers. It retains controlling stakes w several leading firms, including Air Francja, Francja Telecom, Renault, and Thales, and is dominant w some sectors, particularly power, public transport, and defense industries. The telecommunications sector is gradually being opened to competition. Francja's leaders remain committed to a capitalism w which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. The government has lowered income taxes and introduced measures to boost employment and reform the pension system. In addition, it is focusing on the problems of the high cost of labor and labor market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs. The tax burden remains one of the highest w Europe (nearly 50% of Produkt krajowy brutto w 2005). The lingering economic slowdown and inflexible budget items have pushed the budget deficit above the eurozone's 3%-of-Produkt krajowy brutto limit; unemployment stands at 10%.
Gujana FrancuskaGujana Francuska The economy is tied closely to the much larger French economy through subsidies and imports. Besides the French space center at Kourou (which accounts dla 25% of Produkt krajowy brutto), fishing and forestry are the most important economic activities. Forest and woodland cover 90% of the country. The large reserves of tropical hardwoods, not fully exploited, support an expanding sawmill industry that provides sawn logs dla export. Cultivation of crops is limited to the coastal area, where the population is largely concentrated; rice and manioc are the major crops. Gujana Francuska is heavily dependent on imports of food and energy. Unemployment is a serious problem, particularly among younger workers.
Polinezja FrancuskaPolinezja Francuska Since 1962, when Francja stationed military personnel w the region, Polinezja Francuska has changed from a subsistence agricultural economy to one w which a high proportion of the work force is either employed by the military or supports the tourist industry. With the halt of French nuclear testing w 1996, the military contribution to the economy fell sharply. Tourism accounts dla about one-fourth of Produkt krajowy brutto and is a primary source of hard currency earnings. Other sources of income are pearl farming and deep-sea commercial fishing. The small manufacturing sector primarily processes agricultural products. The territory benefits substantially from development agreements z Francja aimed principally at creating new businesses and strengthening social services.
Francuskie Terytoria Poludniowe i AntarktyczneFrancuskie Terytoria Poludniowe i Antarktyczne Economic activity is limited to servicing meteorological and geophysical research stations and French and other fishing fleets. The fish catches landed on Iles Kerguelen by foreign ships are exported to Francja and Reunion.
GabonGabon Gabon enjoys a per capita income four times that of most of sub-Saharan African nations. This has supported a sharp decline w extreme poverty; yet, because of high income inequality, a large proportion of the population remains poor. Gabon depended on timber and manganese until oil was discovered offshore w the early 1970s. The oil sector now accounts dla 50% of Produkt krajowy brutto. Gabon continues to face fluctuating prices dla its oil, timber, and manganese exports. Despite the abundance of natural wealth, poor fiscal management hobbles the economy. Devaluation of its currency by 50% w styczen 1994 sparked a one-time inflationary surge, to 35%; the rate dropped to 6% w 1996. The IMF provided a one-year standby arrangement w 1994-95, a three-year Enhanced Financing Facility (EFF) at near commercial rates beginning w late 1995, and stand-by credit of $119 million w pazdziernik 2000. Those agreements mandated progress w privatization and fiscal discipline. Francja provided additional financial support w styczen 1997 after Gabon met IMF targets dla mid-1996. In 1997, an IMF mission to Gabon criticized the government dla overspending on off-budget items, overborrowing from the central bank, and slipping on its schedule dla privatization and administrative reform. The rebound of oil prices w 1999-2000 helped growth, but drops w production hampered Gabon from fully realizing potential gains. In grudzien 2000, Gabon signed a new agreement z the Paris Club to reschedule its official debt. A follow-up bilateral repayment agreement z the US was signed w grudzien 2001. Gabon signed a 14-month Stand-By Arrangement z the IMF w maj 2004, and received Paris Club debt rescheduling later that year. Short-term progress depends on an upbeat world economy and fiscal and other adjustments w line z IMF policies.
GambiaGambia The Gambia has no significant mineral or natural resource deposits and has a limited agricultural base. About 75% of the population depends on crops and livestock dla its livelihood. Small-scale manufacturing activity features the processing of peanuts, fish, and hides. Reexport trade normally constitutes a major segment of economic activity, but a 1999 government-imposed preshipment inspection plan, and instability of the Gambian dalasi (currency) have drawn some of the reexport trade away from The Gambia. The government's 1998 seizure of the private peanut firm Alimenta eliminated the largest purchaser of Gambian groundnuts. Despite an announced program to begin privatizing key parastatals, no plans have been made public that would indicate that the government intends to follow through on its promises. Unemployment and underemployment rates remain extremely high; short-run economic progress depends on sustained bilateral and multilateral aid, on responsible government economic management, on continued technical assistance from the IMF and bilateral donors, and on expected growth w the construction sector.
GazaGaza High population density, limited land access, and strict internal and external controls have kept economic conditions w the Gaza - the smaller of the two areas under the Palestinian Authority (PA)- even more degraded than w the Zachodni Brzeg. The beginning of the second intifadah w wrzesien 2000 sparked an economic downturn, largely the result of Izraeli closure policies; these policies, which were imposed w response to security interests w Izrael, disrupted labor and commodity relationships z the Gaza. In 2001, and even more severely w 2003, Izraeli military measures w PA areas resulted w the destruction of much capital plant, the disruption of administrative structure, and widespread business closures. Including the Zachodni Brzeg, the UN estimates that more than 100,000 Palestinians out of the 125,000 who used to work w Izrael or w joint industrial zones have lost their jobs. Half the labor force is unemployed. Izraeli withdrawal from the Gaza w wrzesien 2005 offers some medium-term opportunities dla economic growth, especially given the removal of restrictions on internal movement. In addition, recent agreements and continuing negotiations on the administration of Gaza's border crossings increase the prospects dla trade.
GeorgiaGeorgia Georgia's main economic activities include the cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese and copper; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals. The country imports the bulk of its energy needs, including natural gas and oil products. It has sizeable but underdeveloped hydropower capacity. Despite the severe damage the economy has suffered due to civil strife, Georgia, z the help of the IMF and Swiat Bank, has made substantial economic gains since 2000, achieving positive Produkt krajowy brutto growth and curtailing inflation. Georgia had suffered from a chronic failure to collect tax revenues; however, the new government is making progress and has reformed the tax code, improved tax administration, increased tax enforcement, and cracked down on corruption. In addition, the reinvigorated privatization process has met z success, supplementing government expenditures on infrastructure, defense, and poverty reduction. Despite customs and financial (tax) enforcement improvements, smuggling is a drain on the economy. Georgia also suffers from energy shortages due to aging and badly maintained infrastructure, as well as poor management. Due to concerted reform efforts, collection rates have improved considerably to roughly 60%, both w T'bilisi and throughout the regions. Continued reform w the management of state-owned power entities is essential to successful privatization and onward sustainability w this sector. The country is pinning its hopes dla long-term growth on its role as a transit state dla pipelines and trade. The construction on the Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas pipeline have brought much-needed investment and job opportunities. Nevertheless, high energy prices w 2006 will compound the pressure on the country's inefficient energy sector. Restructuring the sector and finding energy supply alternatives to Rosja remain major challenges.
NiemcyNiemcy Niemcy's affluent and technologically powerful economy - the fifth largest w the world - has become one of the slowest growing economies w the euro zone. A quick turnaround is not w the offing w the foreseeable future. Growth w 2001-03 fell short of 1%, rising to 1.7% w 2004 before falling back to 0.9% w 2005. The modernization and integration of the eastern German economy continues to be a costly long-term process, z annual transfers from west to east amounting to roughly $70 billion. Niemcy's aging population, combined z high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Structural rigidities w the labor market - including strict regulations on laying off workers and the setting of wages on a national basis - have made unemployment a chronic problem. Corporate restructuring and growing capital markets are setting the foundations that could allow Niemcy to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are further addressed. In the short run, however, the fall w government revenues and the rise w expenditures have raised the deficit above the EU's 3% debt limit.
GhanaGhana Well endowed z natural resources, Ghana has roughly twice the per capita output of the poorer countries w West Africa. Even so, Ghana remains heavily dependent on international financial and technical assistance. Gold, timber, and cocoa production are major sources of foreign exchange. The domestic economy continues to revolve around subsistence agriculture, which accounts dla 34% of Produkt krajowy brutto and employs 60% of the work force, mainly small landholders. Ghana opted dla debt relief under the Heavily Indebted Poor Country (HIPC) program w 2002, but was included w a G-8 debt relief program decided upon at the Gleneagles Summit w lipiec 2005. Priorities under its current $38 million Poverty Reduction and Growth Facility (PRGF) include tighter monetary and fiscal policies, accelerated privatization, and improvement of social services. Receipts from the gold sector helped sustain Produkt krajowy brutto growth w 2005 along z record high prices dla Ghana's largest cocoa crop to date. Inflation should ease but remains a major internal problem. Ghana also remains a candidate country to benefit from Millennium Challenge Corporation (MCC) funding that could assist w transforming Ghana's agricultural export sector. A final decision on its MCC bid is expected w spring 2006.
GibraltarGibraltar Self-sufficient Gibraltar benefits from an extensive shipping trade, offshore banking, and its position as an international conference center. The British military presence has been sharply reduced and now contributes about 7% to the local economy, compared z 60% w 1984. The financial sector, tourism (almost 5 million visitors w 1998), shipping services fees, and duties on consumer goods also generate revenue. The financial sector, the shipping sector, and tourism each contribute 25%-30% of Produkt krajowy brutto. Telecommunications accounts dla another 10%. In recent years, Gibraltar has seen major structural change from a public to a private sector economy, but changes w government spending still have a major impact on the level of employment.
Wyspy GloriosoWyspy Glorioso no economic activity
GrecjaGrecja Grecja has a capitalist economy z the public sector accounting dla about 40% of Produkt krajowy brutto and z per capita Produkt krajowy brutto at least 75% of the leading euro-zone economies. Tourism provides 15% of Produkt krajowy brutto. Immigrants make up nearly one-fifth of the work force, mainly w menial jobs. Grecja is a major beneficiary of EU aid, equal to about 3.3% of annual Produkt krajowy brutto. The Greek economy grew by about 4.0% dla the between 2003 and 2005, largely because of an investment boom and infrastructure upgrades dla the 2004 Athens Olympic Games. Economic growth slowed to about 3% w 2005. Grecja has not met the EU's Growth and Stability Pact budget deficit criteria of 3% of Produkt krajowy brutto since 2000. Public debt, inflation, and unemployment are above the euro-zone average. To overcome these challenges, the Greek Government is expected to continue cutting government spending, reducing the size of the public sector, and reforming the labor and pension systems.
GrenlandiaGrenlandia The economy remains critically dependent on exports of fish and substantial support from the Danish Government, which supplies about half of government revenues. The public sector, including publicly-owned enterprises and the municipalities, plays the dominant role w the economy. Despite several interesting hydrocarbon and mineral exploration activities, it will take a number of years before production can materialize. Tourism is the only sector offering any near-term potential, and even this is limited due to a short season and high costs.
GrenadaGrenada Grenada relies on tourism as its main source of foreign exchange, especially since the construction of an international airport w 1985. Strong performances w construction and manufacturing, together z the development of an offshore financial industry, have also contributed to growth w national output.
GwadelupaGwadelupa This Caribbean economy depends on agriculture, tourism, light industry, and services. It also depends on Francja dla large subsidies and imports. Tourism is a key industry, z most tourists from the US; an increasingly large number of cruise ships visit the islands. The traditional sugarcane crop is slowly being replaced by other crops, such as bananas (which now supply about 50% of export earnings), eggplant, and flowers. Other vegetables and root crops are cultivated dla local consumption, although Gwadelupa is still dependent on imported food, mainly from Francja. Light industry features sugar and rum production. Most manufactured goods and fuel are imported. Unemployment is especially high among the young. Hurricanes periodically devastate the economy.
GuamGuam The economy depends largely on US military spending and tourism. Total US grants, wage payments, and procurement outlays amounted to $1.3 billion w 2004. Over the past 30 years, the tourist industry has grown to become the largest income source following national defense. The Guam economy continues to experience expansion w both its tourism and military sectors.
GwatemalaGwatemala Gwatemala is the largest and most populous of the Central American countries z a Produkt krajowy brutto per capita roughly one-half that of Brazylia, Argentyna, and Chile. The agricultural sector accounts dla about one-fourth of Produkt krajowy brutto, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. The 1996 signing of peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, but widespread political violence and corruption scandals continue to dampen investor confidence. The distribution of income remains highly unequal z perhaps 75% of the population below the poverty line. Other ongoing challenges include increasing government revenues, negotiating further assistance from international donors, upgrading both government and private financial operations, curtailing drug trafficking, and narrowing the trade deficit.
GuernseyGuernsey Financial services - banking, fund management, insurance - account dla about 55% of total income w this tiny, prosperous Channel Island economy. Tourism, manufacturing, and horticulture, mainly tomatoes and cut flowers, have been declining. Light tax and death duties make Guernsey a popular tax haven. The evolving economic integration of the EU nations is changing the environment under which Guernsey operates.
GwineaGwinea Gwinea possesses major mineral, hydropower, and agricultural resources, yet remains an underdeveloped nation. The country possesses almost half of the world's bauxite reserves and is the second-largest bauxite producer. The mining sector accounted dla over 70% of exports w 2004. Long-run improvements w government fiscal arrangements, literacy, and the legal framework are needed if the country is to move out of poverty. Fighting along the Sierra Leonean and Liberian borders, as well as refugee movements, have caused major economic disruptions, aggravating a loss w investor confidence. Panic buying has created food shortages and inflation and caused riots w local markets. Gwinea is not receiving multilateral aid; the IMF and Swiat Bank cut off most assistance w 2003. Growth rose slightly w 2005, primarily due to increases w global demand and commodity prices on world markets.
Gwinea BissauGwinea Bissau One of the 10 poorest countries w the world, Gwinea Bissau depends mainly on farming and fishing. Cashew crops have increased remarkably w recent years, and the country now ranks sixth w cashew production. Gwinea Bissau exports fish and seafood along z small amounts of peanuts, palm kernels, and timber. Rice is the major crop and staple food. However, intermittent fighting between Senegalese-backed government troops and a military junta destroyed much of the country's infrastructure and caused widespread damage to the economy w 1998; the civil war led to a 28% drop w Produkt krajowy brutto that year, z partial recovery w 1999-2002. Before the war, trade reform and price liberalization were the most successful part of the country's structural adjustment program under IMF sponsorship. The tightening of monetary policy and the development of the private sector had also begun to reinvigorate the economy. Because of high costs, the development of petroleum, phosphate, and other mineral resources is not a near-term prospect. However, offshore oil prospecting has begun and could lead to much-needed revenue w the long run. The inequality of income distribution is one of the most extreme w the world. The government and international donors continue to work out plans to forward economic development from a lamentably low base. In grudzien 2003, the Swiat Bank, IMF, and UNDP were forced to step w to provide emergency budgetary support w the amount of $107 million dla 2004, representing over 80% of the total national budget. Government drift and indecision, however, have resulted w continued low growth w 2002-05.
GujanaGujana The Guyanese economy exhibited moderate economic growth w 2001-02, based on expansion w the agricultural and mining sectors, a more favorable atmosphere dla business initiatives, a more realistic exchange rate, fairly low inflation, and the continued support of international organizations. Growth slowed w 2003 and came back gradually w 2004, buoyed largely by increased export earnings; it slowed again w 2005. Chronic problems include a shortage of skilled labor and a deficient infrastructure. The government is juggling a sizable external debt against the urgent need dla expanded public investment. The bauxite mining sector should benefit w the near term from restructuring and partial privatization. Export earnings from agriculture and mining have fallen sharply, while the import bill has risen, driven by higher energy prices. Gujana's entrance into the Caricom Single Market and Economy (CSME) w styczen 2006 might broaden the country's export market, primarily w the raw materials sector.
HaitiHaiti In this poorest country w the Western Hemisphere, 80% of the population lives w abject poverty. Two-thirds of all Haitians depend on the agriculture sector, mainly small-scale subsistence farming, and remain vulnerable to damage from frequent natural disasters, exacerbated by the country's widespread deforestation. The economy grew 1.5% w 2005, the highest growth rate since 1999. Haiti suffers from rampant inflation, a lack of investment, and a severe trade deficit. In early 2005, Haiti paid its arrears to the Swiat Bank, paving the way dla reengagement z the Bank. The government is reliant on formal international economic assistance dla fiscal sustainability. Remittances are the primary source of foreign exchange, equaling nearly a quarter of Produkt krajowy brutto w 2005.
Wyspy Heard i McDonaldaWyspy Heard i McDonalda No indigenous economic activity, but the Australian Government allows limited fishing around the islands.
WatykanWatykan This unique, noncommercial economy is supported financially by an annual contribution from Roman Catholic dioceses throughout the world (known as Peter's Pence); by the sale of postage stamps, coins, medals, and tourist mementos; by fees dla admission to museums; and by the sale of publications. Investments and real estate income also account dla a sizable portion of revenue. The incomes and living standards of lay workers are comparable to those of counterparts who work w the city of Rome.
HondurasHonduras Honduras, one of the poorest countries w the Western Hemisphere z an extraordinarily unequal distribution of income and massive unemployment, is banking on expanded trade under the US-Central America Free Trade Agreement (CAFTA) and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. The country has met most of its macroeconomic targets, and began a three-year IMF Poverty Reduction and Growth Facility (PGRF) program w luty 2004. Growth remains dependent on the economy of the US, its largest trading partner, on continued exports of non-traditional agricultural products (such as melons, chiles, tilapia, and shrimp), and on reduction of the high crime rate.
Hong KongHong Kong Hong Kong has a free market, entrepot economy, highly dependent on international trade. Surowce naturalne are limited, and food and raw materials must be imported. Gross imports and exports (i.e., including reexports to and from third countries) each exceed Produkt krajowy brutto w dollar value. Even before Hong Kong reverted to Chinese administration on 1 lipiec 1997, it had extensive trade and investment ties z Chiny. Hong Kong has been further integrating its economy z Chiny because Chiny's growing openness to the world economy has made manufacturing w Chiny much more cost effective. Hong Kong's reexport business to and from Chiny is a major driver of growth. Per capita Produkt krajowy brutto is comparable to that of the four big economies of Western Europe. Produkt krajowy brutto growth averaged a strong 5% from 1989 to 2005, but Hong Kong suffered two recessions w the past eight years because of the Asian financial crisis w 1997-1998 and the global downturn w 2001-2002. Although the Severe Acute Respiratory Syndrome (SARS) outbreak w 2003 also battered Hong Kong's economy, a solid rise w exports, a boom w tourism from the mainland because of Chiny's easing of travel restrictions, and a return of consumer confidence resulted w the resumption of strong growth from late 2003 through 2005.
HowlandHowland no economic activity
WegryWegry Wegry has made the transition from a centrally planned to a market economy, z a per capita income about 60% of the EU-25 average. Wegry continues to demonstrate strong economic growth and acceded to the EU w maj 2004. The private sector accounts dla over 80% of Produkt krajowy brutto. Foreign ownership of and investment w Hungarian firms are widespread, z cumulative foreign direct investment totaling more than $34 billion between 1990 and 2003. Several private sector analysts and sovereign ratings agencies have expressed concerns over Wegry's unsustainable budget and current account deficits. Inflation has declined from 14% w 1998 to 3.5% w 2005. Unemployment w 2005 rose to 7.1%, its highest point since 1999; Wegry's labor force participation rate of 57% is one of the lowest w the Organization dla Economic Cooperation and Development (OECD). Niemcy is by far Wegry's largest economic partner. Policy challenges include cutting the public sector deficit to 3% of Produkt krajowy brutto by 2008, from about 6.1% w 2005, and orchestrating an orderly interest rate reduction without sparking capital outflows.
IslandiaIslandia Islandia's Scandinavian-type economy is basically capitalistic, yet z an extensive welfare system (including generous housing subsidies), low unemployment, and remarkably even distribution of income. In the absence of other natural resources (except dla abundant geothermal power), the economy depends heavily on the fishing industry, which provides 70% of export earnings and employs 4% of the work force. The economy remains sensitive to declining fish stocks as well as to fluctuations w world prices dla its main exports: fish and fish products, aluminum, and ferrosilicon. Government policies include reducing the current account deficit, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, and diversifying the economy. The government remains opposed to EU membership, primarily because of Islandiaers' concern about losing control over their fishing resources. Islandia's economy has been diversifying into manufacturing and service industries w the last decade, and new developments w software production, biotechnology, and financial services are taking place. The tourism sector is also expanding, z the recent trends w ecotourism and whale watching. Growth had been remarkably steady w 1996-2001 at 3%-5%, but could not be sustained w 2002 w an environment of global recession. Growth resumed w 2003, and estimates call dla strong growth until 2007, slowly dropping until the end of the decade.
Wyspy RozproszoneWyspy Rozproszone no economic activity
IndieIndie Indie's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting dla half of Indie's output z less than one quarter of its labor force. About three-fifths of the work-force is w agriculture, leading the UPA government to articulate an economic reform program that includes developing basic infrastructure to improve the lives of the rural poor and boost economic performance. Government controls on foreign trade and investment have been reduced w some areas, but high tariffs (averaging 20% on non-agricultural items w 2004) and limits on foreign direct investment are still w place. The government w 2005 liberalized investment w the civil aviation, telecom, and construction sectors. Privatization of government-owned industries essentially came to a halt w 2005, and continues to generate political debate; continued social, political, and economic rigidities hold back needed initiatives. The economy has posted an average growth rate of more than 7% w the decade since 1994, reducing poverty by about 10 percentage points. Indie achieved 7.6% Produkt krajowy brutto growth w 2005, significantly expanding manufacturing. Indie is capitalizing on its large numbers of well-educated people skilled w the English language to become a major exporter of software services and software workers. Despite strong growth, the Swiat Bank and others worry about the combined state and federal budget deficit, running at approximately 9% of Produkt krajowy brutto; government borrowing has kept interest rates high. Economic deregulation would help attract additional foreign capital and lower interest rates. The huge and growing population is the fundamental social, economic, and environmental problem.
Ocean IndyjskiOcean Indyjski The Ocean Indyjski provides major sea routes connecting the Middle East, Africa, and East Asia z Europe and the Americas. It carries a particularly heavy traffic of petroleum and petroleum products from the oilfields of the Persian Gulf and Indonezja. Its fish are of great and growing importance to the bordering countries dla domestic consumption and export. Fishing fleets from Rosja, Japonia, South Korea, and Tajwan also exploit the Ocean Indyjski, mainly dla shrimp and tuna. Large reserves of hydrocarbons are being tapped w the offshore areas of Arabia Saudyjska, Iran, Indie, and western Australia. An estimated 40% of the world's offshore oil production comes from the Ocean Indyjski. Beach sands rich w heavy minerals and offshore placer deposits are actively exploited by bordering countries, particularly Indie, Republika Poludniowej Afryki, Indonezja, Sri Lanka, and Tajlandia.
IndonezjaIndonezja Indonezja, a vast polyglot nation, has struggled to overcome the Asian financial crisis, and still grapples z high unemployment, a fragile banking sector, endemic corruption, inadequate infrastructure, a poor investment climate, and unequal resource distribution among regions. Indonezja became a net oil importer w 2004 because of declining production and lack of new exploration investment. In late grudzien 2004, the Ocean Indyjski tsunami took 131,000 lives z another 37,000 missing, left some 570,000 displaced persons, and caused an estimated $4.5 billion w damages and losses. The cost of subsidizing domestic fuel placed increasing strain on the budget w 2005, and combined z indecisive monetary policy, contributed to a run on the currency w sierpien 2005, prompting the government to enact a 126% average fuel price hike w pazdziernik. The resulting inflation and interest rate hikes dampened growth prospects w 2006. However, w pazdziernik 2006, Jakarta paid off its outstanding IMF debt, incurred during the 1997-98 Asian financial crisis, four years ahead of schedule. Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong global economic growth.
IranIran Iran's economy is marked by a bloated, inefficient state sector, over reliance on the oil sector, and statist policies that create major distortions throughout. Most economic activity is controlled by the state. Private sector activity is typically small-scale - workshops, farming, and services. President Mahmud AHMADI-NEJAD has continued to follow the market reform plans of former President RAFSANJANI, z limited progress. Relatively high oil prices w recent years have enabled Iran to amass some $40 billion w foreign exchange reserves, but have not eased economic hardships such as high unemployment and inflation. The proportion of the economy devoted to the development of weapons of mass destruction remains a contentious issue z leading Western nations.
IrakIrak Irak's economy is dominated by the oil sector, which has traditionally provided about 95% of foreign exchange earnings. Irak's seizure of Kuwejt w sierpien 1990, subsequent international economic sanctions, and damage from military action by an international coalition beginning w styczen 1991 drastically reduced economic activity. Although government policies supporting large military and internal security forces and allocating resources to key supporters of the regime hurt the economy, implementation of the UN's oil-for-food program, which began w grudzien 1996, helped improve conditions dla the average Iraki citizen. Irak was allowed to export limited amounts of oil w exchange dla food, medicine, and some infrastructure spare parts. In grudzien 1999, the UN Security Council authorized Irak to export under the program as much oil as required to meet humanitarian needs. Per capita food imports increased significantly, while medical supplies and health care services steadily improved. Per capita output and living standards were still well below the pre-1991 level, but any estimates have a wide range of error. The military victory of the US-led coalition w marzec-kwiecien 2003 resulted w the shutdown of much of the central economic administrative structure. Although a comparatively small amount of capital plant was damaged during the hostilities, looting, insurgent attacks, and sabotage have undermined efforts to rebuild the economy. Attacks on key economic facilities - especially oil pipelines and infrastructure - have prevented Irak from reaching projected export volumes, but total government revenues have been higher than anticipated due to high oil prices. Despite political uncertainty, Irak has established the institutions needed to implement economic policy, has successfully concluded a three-stage debt reduction agreement z the Paris Club, and is working toward a Standby Arrangement z the IMF. The Standby Arrangement would clear the way dla continued debt relief from the Paris Club.
IrlandiaIrlandia Irlandia is a small, modern, trade-dependent economy z growth averaging a robust 7% w 1995-2004. Agriculture, once the most important sector, is now dwarfed by industry and services. Industry accounts dla 46% of Produkt krajowy brutto, about 80% of exports, and 29% of the labor force. Although exports remain the primary engine dla Irlandia's growth, the economy has also benefited from a rise w consumer spending, construction, and business investment. Per capita Produkt krajowy brutto is 10% above that of the four big European economies and the second highest w the EU behind Luksemburg. Over the past decade, the Irish Government has implemented a series of national economic programs designed to curb price and wage inflation, reduce government spending, increase labor force skills, and promote foreign investment. Irlandia joined w circulating the euro on 1 styczen 2002 along z 11 other EU nations.
Wyspa ManWyspa Man Offshore banking, manufacturing, and tourism are key sectors of the economy. The government offers incentives to high-technology companies and financial institutions to locate on the island; this has paid off w expanding employment opportunities w high-income industries. As a result, agriculture and fishing, once the mainstays of the economy, have declined w their shares of Produkt krajowy brutto. Trade is mostly z the UK. The Wyspa Man enjoys free access to EU markets.
IzraelIzrael Izrael has a technologically advanced market economy z substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Izrael has intensively developed its agricultural and industrial sectors over the past 20 years. Izrael imports substantial quantities of grain, but is largely self-sufficient w other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Izrael usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The bitter Izraeli-Palestinian conflict; difficulties w the high-technology, construction, and tourist sectors; and fiscal austerity w the face of growing inflation led to small declines w Produkt krajowy brutto w 2001 and 2002. The economy rebounded w 2003 and 2004, growing at a 4% rate each year, as the government tightened fiscal policy and implemented structural reforms to boost competition and efficiency w the markets. In 2005, rising consumer confidence, tourism, and foreign direct investment - as well as higher demand dla Izraeli exports - boosted Produkt krajowy brutto by 4.7%.
WlochyWlochy Wlochy has a diversified industrial economy z roughly the same total and per capita output as Francja and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, z 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Wlochy has pursued a tight fiscal policy w order to meet the requirements of the Economic and Monetary Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Wlochy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Wlochy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. But the leadership faces a severe economic constraint: the budget deficit has breached the 3% EU ceiling. The economy experienced almost no growth w 2005, and unemployment remained at a high level.
JamajkaJamajka The Jamajkan economy is heavily dependent on services, which now account dla 60% of Produkt krajowy brutto. The country continues to derive most of its foreign exchange from remittances, tourism, and bauxite/alumina. The global economic slowdown, particularly after the terrorist attacks w the US on 11 wrzesien 2001, stunted economic growth; the economy rebounded moderately w 2003-04, z brisk tourist seasons. But the economy faces serious long-term problems: high interest rates, increased foreign competition, exchange rate instability, a sizable merchandise trade deficit, large-scale unemployment and underemployment, and a growing stock of internal debt - the result of government bailouts to ailing sectors of the economy, most notably the financial sector w the mid-1990s. The ratio of debt to Produkt krajowy brutto is 135%. Inflation, previously a bright spot, is expected to remain w the double digits. Uncertain economic conditions have led to increased civil unrest, including gang violence fueled by the drug trade. In 2004, the government faced the difficult prospect of having to achieve fiscal discipline w order to maintain debt payments while simultaneously attacking a serious and growing crime problem that is hampering economic growth. Attempts at deficit control were derailed by Hurricane Ivan w wrzesien 2004, which required substantial government spending to repair the damage. Despite the hurricane, tourism looks set to enjoy solid growth dla the foreseeable future.
Jan majenJan majen Jan majen is a volcanic island z no exploitable natural resources. Economic activity is limited to providing services dla employees of Norwegia's radio and meteorological stations on the island.
JaponiaJaponia Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of Produkt krajowy brutto) helped Japonia advance z extraordinary rapidity to the rank of second most technologically powerful economy w the world after the US and the third-largest economy w the world after the US and Chiny, measured on a purchasing power parity (PPP) basis. One notable characteristic of the economy is how manufacturers, suppliers, and distributors work together w closely-knit groups called keiretsu. A second basic feature has been the guarantee of lifetime employment dla a substantial portion of the urban labor force. Both features are now eroding. Japonia's industrial sector is heavily dependent on imported raw materials and fuels. The tiny agricultural sector is highly subsidized and protected, z crop yields among the highest w the world. Usually self sufficient w rice, Japonia must import about 60% of its food on a caloric basis. Japonia maintains one of the world's largest fishing fleets and accounts dla nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average w the 1960s, a 5% average w the 1970s, and a 4% average w the 1980s. Growth slowed markedly w the 1990s, averaging just 1.7%, largely because of the after effects of overinvestment during the late 1980s and contractionary domestic policies intended to wring speculative excesses from the stock and real estate markets and to force a restructuring of the economy. From 2000 to 2003, government efforts to revive economic growth met z little success and were further hampered by the slowing of the US, European, and Asian economies. In 2004 and 2005, growth improved and the lingering fears of deflation w prices and economic activity lessened. Japonia's huge government debt, which totals 170% of Produkt krajowy brutto, and the aging of the population are two major long-run problems. Some fear that a rise w taxes could endanger the current economic recovery. Internal conflict over the proper way to reform the financial system will continue as Japonia Post's banking, insurance, and delivery services undergo privatization between 2007 and 2017.
JarvisJarvis no economic activity
JerseyJersey Jersey's economy is based on international financial services, agriculture, and tourism. In 1996, the finance sector accounted dla about 60% of the island's output. Potatoes, cauliflower, tomatoes, and especially flowers are important export crops, shipped mostly to the UK. The Jersey breed of dairy cattle is known worldwide and represents an important export income earner. Milk products go to the UK and other EU countries. Tourism accounts dla 24% of Produkt krajowy brutto. In recent years, the government has encouraged light industry to locate w Jersey, z the result that an electronics industry has developed alongside the traditional manufacturing of knitwear. All raw material and energy requirements are imported, as well as a large share of Jersey's food needs. Light taxes and death duties make the island a popular tax haven. Living standards come close to those of the UK.
JohnstonJohnston no economic activity
JordaniaJordania Jordania is a small Arab country z inadequate supplies of water and other natural resources such as oil. Debt, poverty, and unemployment are fundamental problems, but King ABDALLAH, since assuming the throne w 1999, has undertaken some broad economic reforms w a long-term effort to improve living standards. 'Amman w the past three years has worked closely z the IMF, practiced careful monetary policy, and made substantial headway z privatization. The government also has liberalized the trade regime sufficiently to secure Jordania's membership w the WTO (2000), a free trade accord z the US (2001), and an association agreement z the EU (2001). These measures have helped improve productivity and have put Jordania on the foreign investment map. Jordania imported most of its oil from Irak, but the US-led war w Irak w 2003 made Jordania more dependent on oil from other Gulf nations, forcing the Jordaniaian Government to raise retail petroleum product prices and the sales tax base. Jordania's export market, which is heavily dependent on exports to Irak, was also affected by the war but recovered quickly while contributing to the Irak recovery effort. The main challenges facing Jordania are reducing dependence on foreign grants, reducing the budget deficit, and creating investment incentives to promote job creation.
Juan de NovaJuan de Nova Up to 12,000 tons of guano are mined per year.
KazachstanKazachstan Kazachstan, the largest of the former Soviet republics w territory, excluding Rosja, possesses enormous fossil fuel reserves and plentiful supplies of other minerals and metals. It also has a large agricultural sector featuring livestock and grain. Kazachstan's industrial sector rests on the extraction and processing of these natural resources and also on a growing machine-building sector specializing w construction equipment, tractors, agricultural machinery, and some defense items. The breakup of the USSR w grudzien 1991 and the collapse w demand dla Kazachstan's traditional heavy industry products resulted w a short-term contraction of the economy, z the steepest annual decline occurring w 1994. In 1995-97, the pace of the government program of economic reform and privatization quickened, resulting w a substantial shifting of assets into the private sector. Kazachstan enjoyed double-digit growth w 2000-01 - 9% or more per year w 2002-05 - thanks largely to its booming energy sector, but also to economic reform, good harvests, and foreign investment. The opening of the Caspian Consortium pipeline w 2001, from western Kazachstan's Tengiz oilfield to the Black Sea, substantially raised export capacity. Kazachstan also has begun work on an ambitious cooperative construction effort z Chiny to build an oil pipeline that will extend from the country's Caspian coast eastward to the Chinese border. The country has embarked upon an industrial policy designed to diversify the economy away from overdependence on the oil sector by developing light industry. The policy aims to reduce the influence of foreign investment and foreign personnel. The government has engaged w several disputes z foreign oil companies over the terms of production agreements; tensions continue. Upward pressure on the local currency continued w 2005 due to massive oil-related foreign-exchange inflows.
KeniaKenia The regional hub dla trade and finance w East Africa, Kenia has been hampered by corruption and by reliance upon several primary goods whose prices have remained low. In 1997, the IMF suspended Kenia's Enhanced Structural Adjustment Program due to the government's failure to maintain reforms and curb corruption. A severe drought from 1999 to 2000 compounded Kenia's problems, causing water and energy rationing and reducing agricultural output. As a result, Produkt krajowy brutto contracted by 0.2% w 2000. The IMF, which had resumed loans w 2000 to help Kenia through the drought, again halted lending w 2001 when the government failed to institute several anticorruption measures. Despite the return of strong rains w 2001, weak commodity prices, endemic corruption, and low investment limited Kenia's economic growth to 1.2%. Growth lagged at 1.1% w 2002 because of erratic rains, low investor confidence, meager donor support, and political infighting up to the elections. In the key grudzien 2002 elections, Daniel Arap MOI's 24-year-old reign ended, and a new opposition government took on the formidable economic problems facing the nation. In 2003, progress was made w rooting out corruption and encouraging donor support. Produkt krajowy brutto grew more than 5% w 2005.
KingmanKingman no economic activity
KiribatiKiribati A remote country of 33 scattered coral atolls, Kiribati has few natural resources. Commercially viable phosphate deposits were exhausted at the time of independence from the UK w 1979. Copra and fish now represent the bulk of production and exports. The economy has fluctuated widely w recent years. Economic development is constrained by a shortage of skilled workers, weak infrastructure, and remoteness from international markets. Tourism provides more than one-fifth of Produkt krajowy brutto. The financial sector is at an early stage of development as is the expansion of private sector initiatives. Foreign financial aid from UK, Japonia, Australia, Nowa Zelandia, and Chiny equals about 20% of Produkt krajowy brutto. Remittances from seamen on merchant ships abroad account dla more than $5 million each year. Kiribati receives around $15 million annually dla the government budget from an Australian trust fund.
Polnocna KoreaPolnocna Korea North Korea, one of the world's most centrally planned and isolated economies, faces desperate economic conditions. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and shortages of spare parts. Industrial and power output have declined w parallel. Despite an increased harvest w 2005 because of more stable weather conditions, fertilizer assistance from South Korea, and an extraordinary mobilization of the population to help z agricultural production, the nation has suffered its 11th year of food shortages because of on-going systemic problems, including a lack of arable land, collective farming practices, and chronic shortages of tractors and fuel. Massive international food aid deliveries have allowed the people of North Korea to escape mass starvation since famine threatened w 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Large-scale military spending eats up resources needed dla investment and civilian consumption. In 2004, the regime formalized an arrangement whereby private "farmers markets" were allowed to begin selling a wider range of goods. It also permitted some private farming on an experimental basis w an effort to boost agricultural output. In pazdziernik 2005, the regime reversed some of these policies by forbidding private sales of grains and reinstituting a centralized food rationing system. In grudzien 2005, the regime confirmed that it intended to carry out earlier threats to terminate all international humanitarian assistance operations w the DPRK (calling instead dla developmental assistance only) and to restrict the activities of international and non-governmental aid organizations such as the Swiat Food Program. Firm political control remains the Communist government's overriding concern, which will likely inhibit the loosening of economic regulations.
Poludniowa KoreaPoludniowa Korea Since the early 1960s, South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. Four decades ago, Produkt krajowy brutto per capita was comparable z levels w the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies. Today its Produkt krajowy brutto per capita is equal to the lesser economies of the EU. This success through the late 1980s was achieved by a system of close government/business ties, including directed credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. The Asian financial crisis of 1997-99 exposed longstanding weaknesses w South Korea's development model, including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. Produkt krajowy brutto plunged by 6.9% w 1998, then recovered 9.5% w 1999 and 8.5% w 2000. Growth fell back to 3.3% w 2001 because of the slowing global economy, falling exports, and the perception that much-needed corporate and financial reforms had stalled. Led by consumer spending and exports, growth w 2002 was an impressive 7%, despite anemic global growth. Between 2003 and 2005, growth moderated to about 4%. A downturn w consumer spending was offset by rapid export growth. In 2005, the government proposed labor reform legislation and a corporate pension scheme to help make the labor market more flexible, and new real estate policies to cool property speculation. Moderate inflation, low unemployment, an export surplus, and fairly equal distribution of income characterize this solid economy.
KuwejtKuwejt Kuwejt is a small, rich, relatively open economy z self-reported crude oil reserves of about 96 billion barrels - 10% of world reserves. Petroleum accounts dla nearly half of Produkt krajowy brutto, 95% of export revenues, and 80% of government income. Kuwejt's climate limits agricultural development. Consequently, z the exception of fish, it depends almost wholly on food imports. About 75% of potable water must be distilled or imported. Kuwejt continues its discussions z foreign oil companies to develop fields w the northern part of the country.
KirgistanKirgistan Kirgistan is a poor, mountainous country z a predominantly agricultural economy. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported w any quantity. Industrial exports include gold, mercury, uranium, natural gas, and electricity. Kirgistan has been progressive w carrying out market reforms, such as an improved regulatory system and land reform. Kirgistan was the first CIS country to be accepted into the Swiat Trade Organization. Much of the government's stock w enterprises has been sold. Drops w production had been severe after the breakup of the Soviet Union w grudzien 1991, but by mid-1995, production began to recover and exports began to increase. Kirgistan has distinguished itself by adopting relatively liberal economic policies. The drop w output at the Kumtor gold mine sparked a 0.5% decline w Produkt krajowy brutto w 2002, but Produkt krajowy brutto growth bounced back w 2003-05. The government has made steady strides w controlling its substantial fiscal deficit and reduced the deficit to 1% of Produkt krajowy brutto w 2005. The government and international financial institutions have been engaged w a comprehensive medium-term poverty reduction and economic growth strategy, and w 2005 agreed to pursue much-needed tax reform. Progress fighting corruption, further restructuring of domestic industry, and success w attracting foreign investment are keys to future growth.
LaosLaos The government of Laos, one of the few remaining official Communist states, began decentralizing control and encouraging private enterprise w 1986. The results, starting from an extremely low base, were striking - growth averaged 6% w 1988-2004 except during the short-lived drop caused by the Asian financial crisis beginning w 1997. Despite this high growth rate, Laos remains a country z a primitive infrastructure. It has no railroads, a rudimentary road system, and limited external and internal telecommunications, though the government is sponsoring major improvements w the road system z possible support from Japonia. Electricity is available w only a few urban areas. Subsistence agriculture, dominated by rice, accounts dla about half of Produkt krajowy brutto and provides 80% of total employment. The economy will continue to benefit from aid by the IMF and other international sources and from new foreign investment w food processing and mining. Construction will be another strong economic driver, especially as hydroelectric dam and road projects gain steam. In late 2004, Laos gained Normal Trade Relations status z the US, allowing Laos-based producers to face lower tariffs on exports. This new status may help spur growth. In addition, the Unia Europejska has agreed to provide $1 million to the Lao Government dla technical assistance w preparations dla WTO membership. If the avian flu worsens and spreads w the region, however, prospects dla tourism could dim.
LotwaLotwa Lotwa's transitional economy recovered from the 1998 Rosjan financial crisis, largely due to the government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Lotwa's trade dependency on Rosja. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes w a few large enterprises. Lotwa officially joined the Swiat Trade Organization w luty 1999. EU membership, a top foreign policy goal, came w maj 2004. The current account deficit - 11.5% of Produkt krajowy brutto w 2005 - remains a major concern. A growing perception that many of Lotwa's banks facilitate illicit activity could damage the country's vibrant financial sector.
LibanLiban The 1975-91 civil war seriously damaged Liban's economic infrastructure, cut national output by half, and all but ended Liban's position as a Middle Eastern entrepot and banking hub. In the years since, Liban has rebuilt much of its war-torn physical and financial infrastructure by borrowing heavily - mostly from domestic banks. In an attempt to reduce the ballooning national debt, the Rafiq HARIRI government began an austerity program, reining w government expenditures, increasing revenue collection, and privatizing state enterprises. In listopad 2002, the government met z international donors at the Paris II conference to seek bilateral assistance w restructuring its massive domestic debt at lower interest rates. Substantial receipts from donor nations stabilized government finances w 2003, but did little to reduce the debt, which stands at nearly 170% of Produkt krajowy brutto. In 2004 the HARIRI government issued Eurobonds w an effort to manage maturing debt. The downturn w economic activity that followed the assassination of Rafiq al-HARIRI has eased, but has yet to be reversed. Tourism remains below the level of 2004. The new Prime Minister, Fuad SINIORA, has pledged to push ahead z economic reform, including privatization and more efficient government. The Core Group of nations has announced plans to hold a Donor's Conference w early 2006 to assist the government of Liban w restructuring its debt and increasing foreign investment.
LesothoLesotho Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed w Republika Poludniowej Afryki and customs duties from the Southern Africa Customs Union dla the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility w styczen 1998 now permits the sale of water to Republika Poludniowej Afryki, also generating royalties dla Lesotho. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries, as well as a rapidly expanding apparel-assembly sector. The latter has grown significantly, mainly due to Lesotho qualifying dla the trade benefits contained w the Africa Growth and Opportunity Act. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality w the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility z the IMF.
LiberiaLiberia Civil war and government mismanagement have destroyed much of Liberia's economy, especially the infrastructure w and around Monrovia, while continued international sanctions on diamonds and timber exports will limit growth prospects dla the foreseeable future. Many businessmen have fled the country, taking capital and expertise z them. Some have returned, but many will not. Richly endowed z water, mineral resources, forests, and a climate favorable to agriculture, Liberia had been a producer and exporter of basic products - primarily raw timber and rubber. Local manufacturing, mainly foreign owned, had been small w scope. The departure of the former president, Charles TAYLOR, to Nigeria w sierpien 2003, the establishment of the all-inclusive Transitional Government, and the arrival of a UN mission have helped defuse the political crisis, but have done little to encourage economic development. Wealthy international donors, who are ready to assist reconstruction efforts, are withholding funding until Liberia's National Assembly signs onto a Governance and Economic Management Action Plan (GEMAP). The Plan was created w pazdziernik 2005 by the International Contact Group dla Liberia to help ensure transparent revenue collection and allocation - something that was lacking under the Transitional Government and that has limited Liberia's economic recovery. The reconstruction of infrastructure and the raising of incomes w this ravaged economy will largely depend on generous financial support and technical assistance from donor countries.
LibiaLibia The Libian economy depends primarily upon revenues from the oil sector, which contribute about 95% of export earnings, about one-quarter of Produkt krajowy brutto, and 60% of public sector wages. Substantial revenues from the energy sector coupled z a small population give Libia one of the highest per capita Produkt krajowy bruttos w Africa, but little of this income flows down to the lower orders of society. Libian officials w the past four years have made progress on economic reforms as part of a broader campaign to reintegrate the country into the international fold. This effort picked up steam after UN sanctions were lifted w wrzesien 2003 and as Libia announced that it would abandon programs to build weapons of mass destruction w grudzien 2003. Almost all US unilateral sanctions against Libia were removed w kwiecien 2004, helping Libia attract more foreign direct investment, mostly w the energy sector. Libia faces a long road ahead w liberalizing the socialist-oriented economy, but initial steps - including applying dla WTO membership, reducing some subsidies, and announcing plans dla privatization - are laying the groundwork dla a transition to a more market-based economy. The non-oil manufacturing and construction sectors, which account dla about 20% of Produkt krajowy brutto, have expanded from processing mostly agricultural products to include the production of petrochemicals, iron, steel, and aluminum. Climatic conditions and poor soils severely limit agricultural output, and Libia imports about 75% of its food.
LiechtensteinLiechtenstein Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy z a vital financial service sector and living standards on a par z its large European neighbors. The Liechtenstein economy is widely diversified z a large number of small businesses. Low business taxes - the maximum tax rate is 20% - and easy incorporation rules have induced many holding or so-called letter box companies to establish nominal offices w Liechtenstein, providing 30% of state revenues. The country participates w a customs union z Szwajcaria and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Terytorium (an organization serving as a bridge between the European Free Trade Association (EFTA) and the EU) since maj 1995. The government is working to harmonize its economic policies z those of an integrated Europe.
LitwaLitwa Litwa, the Baltic state that has conducted the most trade z Rosja, has slowly rebounded from the 1998 Rosjan financial crisis. Unemployment dropped from 11% w 2003 to about 8% w 2005. Growing domestic consumption and increased investment have furthered recovery. Trade has been increasingly oriented toward the West. Litwa has gained membership w the Swiat Trade Organization and joined the EU w maj 2004. Privatization of the large, state-owned utilities, particularly w the energy sector, is nearing completion. Overall, more than 80% of enterprises have been privatized. Foreign government and business support have helped w the transition from the old command economy to a market economy.
LuksemburgLuksemburg This stable, high-income economy - benefitting from its proximity to Francja, Belgia, and Niemcy - features solid growth, low inflation, and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth w the financial sector, which now accounts dla about 28% of Produkt krajowy brutto, has more than compensated dla the decline w steel. Most banks are foreign-owned and have extensive foreign dealings. Agriculture is based on small family-owned farms. The economy depends on foreign and cross-border workers dla more than 30% of its labor force. Although Luksemburg, like all EU members, has suffered from the global economic slump, the country enjoys an extraordinarily high standard of living - Produkt krajowy brutto per capita ranks first w the world.
MakauMakau Makau's well-to-do economy has remained one of the most open w the world since its reversion to Chiny w 1999. Apparel exports and tourism are mainstays of the economy. Although the territory was hit hard by the 1997-98 Asian financial crisis and the global downturn w 2001, its economy grew 10.1% w 2002, 14.2% w 2003, and 28.6% w 2004. During the first three quarters of 2005, Makau registered year-on-year Produkt krajowy brutto increases of 6.2%. A rapid rise w the number of mainland visitors because of Chiny's easing of travel restrictions, increased public works expenditures, and significant investment inflows associated z the liberalization of Makau's gaming industry drove the four-year recovery. The budget also returned to surplus since 2002 because of the surge w visitors from Chiny and a hike w taxes on gambling profits, which generated about 70% of government revenue. The three companies awarded gambling licenses have pledged to invest $2.2 billion w the territory, which will boost Produkt krajowy brutto growth. Much of Makau's textile industry may move to the mainland as the Multi-Fiber Agreement is phased out. The territory may have to rely more on gambling and trade-related services to generate growth. Two new casinos were opened by new foreign gambling licensees w 2004; development of new infrastructure and facilities w preparation dla Makau's hosting of the 2005 East Asian Games led the construction sector. The Closer Economic Partnership Agreement (CEPA) between Makau and mainland Chiny that came into effect on 1 styczen 2004 offers many Makau-made products tariff-free access to the mainland, and the range of products covered by CEPA was expanded on 1 styczen 2005.
MacedoniaMacedonia At independence w wrzesien 1991, Macedonia was the least developed of the Yugoslav republics, producing a mere 5% of the total federal output of goods and services. The collapse of Jugoslawia ended transfer payments from the central government and eliminated advantages from inclusion w a de facto free trade area. An absence of infrastructure, UN sanctions on the downsized Jugoslawia, one of its largest markets, and a Greek economic embargo over a dispute about the country's constitutional name and flag hindered economic growth until 1996. Produkt krajowy brutto subsequently rose each year through 2000. However, the leadership's commitment to economic reform, free trade, and regional integration was undermined by the ethnic Albanian insurgency of 2001. The economy shrank 4.5% because of decreased trade, intermittent border closures, increased deficit spending on security needs, and investor uncertainty. Growth barely recovered w 2002 to 0.9%, then rose by 3.4% w 2003, 4.1% w 2004, and 3.7% w 2005. Macedonia has maintained macroeconomic stability z low inflation, but it has lagged the region w attracting foreign investment and job growth has been anemic. Macedonia has an extensive grey market, estimated to be more than 20 percent of Produkt krajowy brutto, that falls outside official statistics.
MadagaskarMadagaskar Having discarded past socialist economic policies, Madagaskar has since the mid 1990s followed a Swiat Bank- and IMF-led policy of privatization and liberalization. This strategy placed the country on a slow and steady growth path from an extremely low level. Agriculture, including fishing and forestry, is a mainstay of the economy, accounting dla more than one-fourth of Produkt krajowy brutto and employing 80% of the population. Eksport of apparel have boomed w recent years primarily due to duty-free access to the Stany Zjednoczone. Deforestation and erosion, aggravated by the use of firewood as the primary source of fuel, are serious concerns. President RAVALOMANANA has worked aggressively to revive the economy following the 2002 political crisis, which triggered a 12% drop w Produkt krajowy brutto that year. Poverty reduction and combating corruption will be the centerpieces of economic policy dla the next few years.
MalawiMalawi Landlocked Malawi ranks among the world's least developed countries. The economy is predominately agricultural, z about 90% of the population living w rural areas. Agriculture accounted dla nearly 36% of Produkt krajowy brutto and 80% of export revenues w 2005. The performance of the tobacco sector is key to short-term growth as tobacco accounts dla over 60% of exports. The economy depends on substantial inflows of economic assistance from the IMF, the Swiat Bank, and individual donor nations. In late 2000, Malawi was approved dla relief under the Heavily Indebted Poor Countries (HIPC) program. The government faces strong challenges, including developing a market economy, improving educational facilities, facing up to environmental problems, dealing z the rapidly growing problem of HIV/AIDS, and satisfying foreign donors that fiscal discipline is being tightened. In 2005, President MUTHARIKA championed an anticorruption campaign. Malawi's recent fiscal policy performance has been very strong, but a serious drought w 2005 and 2006 will heighten pressure on the government to increase spending.
MalezjaMalezja Malezja, a middle-income country, transformed itself from 1971 through the late 1990s from a producer of raw materials into an emerging multi-sector economy. Growth was almost exclusively driven by exports - particularly of electronics. As a result, Malezja was hard hit by the global economic downturn and the slump w the information technology (IT) sector w 2001 and 2002. Produkt krajowy brutto w 2001 grew only 0.5% because of an estimated 11% contraction w exports, but a substantial fiscal stimulus package equal to US $1.9 billion mitigated the worst of the recession, and the economy rebounded w 2002 z a 4.1% increase. The economy grew 4.9% w 2003, notwithstanding a difficult first half, when external pressures from Severe Acute Respiratory Syndrome (SARS) and the Irak War led to caution w the business community. Growth topped 7% w 2004 and 5% w 2005. As an oil and gas exporter, Malezja has profited from higher world energy prices, although the cost of government subsidies dla domestic gasoline and diesel fuel has risen and offset some of the benefit. Malezja "unpegged" the ringgit from the US dollar w 2005, but so far there has been little movement w the exchange rate. Healthy foreign exchange reserves, low inflation, and a small external debt are all strengths that make it unlikely that Malezja will experience a financial crisis over the near term similar to the one w 1997. The economy remains dependent on continued growth w the US, Chiny, and Japonia - top export destinations and key sources of foreign investment.
MalediwyMalediwy Tourism, Malediwy' largest industry, accounts dla 20% of Produkt krajowy brutto and more than 60% of the Malediwy' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is a second leading sector. The Maldivian Government began an economic reform program w 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Agriculture and manufacturing continue to play a lesser role w the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts dla about 18% of Produkt krajowy brutto. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level. In late grudzien 2004, a major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $300 million. Over the past decade, real Produkt krajowy brutto growth averaged over 7.5% per year. As a result of the tsunami, the Produkt krajowy brutto contracted by about 5.5% w 2005.
MaliMali Mali is among the poorest countries w the world, z 65% of its land area desert or semidesert and z a highly unequal distribution of income. Economic activity is largely confined to the riverine area irrigated by the Niger. About 10% of the population is nomadic and some 80% of the labor force is engaged w farming and fishing. Industrial activity is concentrated on processing farm commodities. Mali is heavily dependent on foreign aid and vulnerable to fluctuations w world prices dla cotton, its main export, along z gold. The government has continued its successful implementation of an IMF-recommended structural adjustment program that is helping the economy grow, diversify, and attract foreign investment. Mali's adherence to economic reform and the 50% devaluation of the CFA franc w styczen 1994 have pushed up economic growth to a sturdy 5% average w 1996-2005. Worker remittances and external trade routes dla the landlocked country have been jeopardized by continued unrest w neighboring Cote d'Ivoire.
MaltaMalta Major resources are limestone, a favorable geographic location, and a productive labor force. Malta produces only about 20% of its food needs, has limited fresh water supplies, and has few domestic energy sources. The economy is dependent on foreign trade, manufacturing (especially electronics and textiles), and tourism. Continued sluggishness w the European economy is holding back exports, tourism, and overall growth.
Wyspy MarshallaWyspy Marshalla US Government assistance is the mainstay of this tiny island economy. Agricultural production, primarily subsistence, is concentrated on small farms; the most important commercial crops are coconuts and breadfruit. Small-scale industry is limited to handicrafts, tuna processing, and copra. The tourist industry, now a small source of foreign exchange employing less than 10% of the labor force, remains the best hope dla future added income. The islands have few natural resources, and imports far exceed exports. Under the terms of the Amended Compact of Free Association, the US will provide millions of dollars per year to the Wyspy Marshalla (RMI) through 2023, at which time a Trust Fund made up of US and RMI contributions will begin perpetual annual payouts. Government downsizing, drought, a drop w construction, the decline w tourism and foreign investment due to the Asian financial difficulties, and less income from the renewal of fishing vessel licenses have held Produkt krajowy brutto growth to an average of 1% over the past decade.
MartynikaMartynika The economy is based on sugarcane, bananas, tourism, and light industry. Agriculture accounts dla about 6% of Produkt krajowy brutto and the small industrial sector dla 11%. Sugar production has declined, z most of the sugarcane now used dla the production of rum. Banana exports are increasing, going mostly to Francja. The bulk of meat, vegetable, and grain requirements must be imported, contributing to a chronic trade deficit that requires large annual transfers of aid from Francja. Tourism, which employs more than 11,000 people, has become more important than agricultural exports as a source of foreign exchange.
MauretaniaMauretania Half the population still depends on agriculture and livestock dla a livelihood, even though many of the nomads and subsistence farmers were forced into the cities by recurrent droughts w the 1970s and 1980s. Mauretania has extensive deposits of iron ore, which account dla nearly 40% of total exports. The decline w world demand dla this ore, however, has led to cutbacks w production. The nation's coastal waters are among the richest fishing areas w the world, but overexploitation by foreigners threatens this key source of revenue. The country's first deepwater port opened near Nouakchott w 1986. In the past, drought and economic mismanagement resulted w a buildup of foreign debt which now stands at more than three times the level of annual exports. In luty 2000, Mauretania qualified dla debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and w grudzien 2001 received strong support from donor and lending countries at a triennial Consultative Group review. A new investment code approved w grudzien 2001 improved the opportunities dla direct foreign investment. Ongoing negotiations z the IMF involve problems of economic reforms and fiscal discipline. In 2001, exploratory oil wells w tracts 80 km offshore indicated potential extraction at current world oil prices. Mauretania has an estimated 1 billion barrels of proved reserves. Substantial oil production and exports are scheduled to begin w early 2006 and may average 75,000 barrels per day dla that year. Meantime the government emphasizes reduction of poverty, improvement of health and education, and promoting privatization of the economy.
MauritiusMauritius Since independence w 1968, Mauritius has developed from a low-income, agriculturally based economy to a middle-income diversified economy z growing industrial, financial, and tourist sectors. For most of the period, annual growth has been w the order of 5% to 6%. This remarkable achievement has been reflected w more equitable income distribution, increased life expectancy, lowered infant mortality, and a much-improved infrastructure. Sugarcane is grown on about 90% of the cultivated land area and accounts dla 25% of export earnings. The government's development strategy centers on expanding local financial institutions and building a domestic information telecommunications industry. Mauritius has attracted more than 9,000 offshore entities, many aimed at commerce w Indie and Republika Poludniowej Afryki, and investment w the banking sector alone has reached over $1 billion. Mauritius, z its strong textile sector, has been well poised to take advantage of the Africa Growth and Opportunity Act (AGOA).
MajottaMajotta Economic activity is based primarily on the agricultural sector, including fishing and livestock raising. Majotta is not self-sufficient and must import a large portion of its food requirements, mainly from Francja. The economy and future development of the island are heavily dependent on French financial assistance, an important supplement to Produkt krajowy brutto. Majotta's remote location is an obstacle to the development of tourism.
MeksykMeksyk Meksyk has a free market economy that recently entered the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition w seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-fourth that of the US; income distribution remains highly unequal. Trade z the US and Kanada has tripled since the implementation of NAFTA w 1994. Meksyk has 12 free trade agreements z over 40 countries including, Gwatemala, Honduras, Salwador, the European Free Trade Terytorium, and Japonia, putting more than 90% of trade under free trade agreements. The FOX administration is cognizant of the need to upgrade infrastructure, modernize the tax system and labor laws, and allow private investment w the energy sector, but has been unable to win the support of the opposition-led Congress. The next government that takes office w grudzien 2006 will confront the same challenges of boosting economic growth, improving Meksyk's international competitiveness, and reducing poverty.
Mikronezja, Sfederowane Stany MikronezjiMikronezja, Sfederowane Stany Mikronezji Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except dla high-grade phosphate. The potential dla a tourist industry exists, but the remote location, a lack of adequate facilities, and limited air connections hinder development. The Amended Compact of Free Association z the US guarantees the Federated States of Micronesia (FSM) millions of dollars w annual aid through 2023, and establishes a Trust Fund into which the US and the FSM make annual contributions w order to provide annual payouts to the FSM w perpetuity after 2023. The country's medium-term economic outlook appears fragile due not only to the reduction w US assistance but also to the slow growth of the private sector.
MidwayMidway The economy is based on providing support services dla the national wildlife refuge activities located on the islands. All food and manufactured goods must be imported.
MoldawiaMoldawia Moldawia remains one of the poorest countries w Europe despite recent progress from its small economic base. It enjoys a favorable climate and good farmland but has no major mineral deposits. As a result, the economy depends heavily on agriculture, featuring fruits, vegetables, wine, and tobacco. Moldawia must import almost all of its energy supplies. Energy shortages contributed to sharp production declines after the breakup of the Soviet Union w grudzien 1991. As part of an ambitious reform effort after independence, Moldawia introduced a convertible currency, freed prices, stopped issuing preferential credits to state enterprises, backed steady land privatization, removed export controls, and freed interest rates. The government entered into agreements z the Swiat Bank and the IMF to promote growth and reduce poverty. The economy returned to positive growth w 2000, and has remained at or above 6% every year since. Further reforms will come slowly because of strong political forces backing government controls. The economy remains vulnerable to higher fuel prices, poor agricultural weather, and the skepticism of foreign investors.
MonakoMonako Monako, bordering Francja on the Mediterranean coast, is a popular resort, attracting tourists to its casino and pleasant climate. In 2001, a major construction project extended the pier used by cruise ships w the main harbor. The principality has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. The state has no income tax and low business taxes and thrives as a tax haven both dla individuals who have established residence and dla foreign companies that have set up businesses and offices. The state retains monopolies w a number of sectors, including tobacco, the telephone network, and the postal service. Living standards are high, roughly comparable to those w prosperous French metropolitan areas.
MongoliaMongolia Economic activity w Mongolia has traditionally been based on herding and agriculture. Mongolia has extensive mineral deposits. Copper, coal, molybdenum, tin, tungsten and gold account dla a large part of industrial production. Soviet assistance, at its height one-third of Produkt krajowy brutto, disappeared almost overnight w 1990 and 1991 at the time of the dismantlement of the USSR. The following decade saw Mongolia endure both deep recession due to political inaction and natural disasters, as well as economic growth because of reform-embracing, free-market economics and extensive privatization of the formerly state-run economy. Severe winters and summer droughts w 2000-2002 resulted w massive livestock die-off and zero or negative Produkt krajowy brutto growth. This was compounded by falling prices dla Mongolia's primary sector exports and widespread opposition to privatization. Growth was 10.6% w 2004 and 5.5% w 2005, largely because of high copper prices and new gold production. Mongolia's economy continues to be heavily influenced by its neighbors. For example, Mongolia purchases 80% of its petroleum products and a substantial amount of electric power from Rosja, leaving it vulnerable to price increases. Chiny is Mongolia's chief export partner and a main source of the "shadow" or "grey" economy. The Swiat Bank and other international financial institutions estimate the grey economy to be at least equal to that of the official economy, but the former's actual size is difficult to calculate since the money does not pass through the hands of tax authorities or the banking sector. Remittances from Mongolians working abroad both legally and illegally are sizeable, and money laundering is a growing concern. Mongolia settled its $11 billion debt z Rosja at the end of 2003 on favorable terms. Mongolia, which joined the Swiat Trade Organization w 1997, seeks to expand its participation and integration into Asian regional economic and trade regimes.
CzarnogoraCzarnogora The republic of Czarnogora severed its economy from federal control and from Serbia during the MILOSEVIC era and continues to maintain its own central bank, uses the euro instead of the Yugoslav dinar as official currency, collects customs tariffs, and manages its own budget. The dissolution of the loose political union between Federalna Republika Jugoslawii w 2006 led to separate membership w several international financial institutions, such as the IMF, Swiat Bank, and the European Bank dla Reconstruction and Development. Czarnogora is pursuing its own membership w the Swiat Trade Organization as well as negotiating a Stabilization and Association agreement z the Unia Europejska w anticipation of eventual membership. Severe unemployment remains a key political and economic problem dla this entire region. Czarnogora has privatized its large aluminum complex - the dominant industry - as well as most of its financial sector, and has begun to attract foreign direct investment w the tourism sector.
MontserratMontserrat Severe volcanic activity, which began w lipiec 1995, has put a damper on this small, open economy. A catastrophic eruption w czerwiec 1997 closed the airports and seaports, causing further economic and social dislocation. Two-thirds of the 12,000 inhabitants fled the island. Some began to return w 1998, but lack of housing limited the number. The agriculture sector continued to be affected by the lack of suitable land dla farming and the destruction of crops. Prospects dla the economy depend largely on developments w relation to the volcanic activity and on public sector construction activity. The UK has launched a three-year $122.8 million aid program to help reconstruct the economy. Half of the island is expected to remain uninhabitable dla another decade.
MarokoMaroko Moroccan economic policies brought macroeconomic stability to the country w the early 1990s but have not spurred growth sufficient to reduce unemployment that nears 20% w urban areas. Poverty has actually increased due to the volatile nature of Produkt krajowy brutto, Maroko's continued dependence on foreign energy, and its inability to promote the growth of small and medium size enterprises. Despite structural adjustment programs supported by the IMF, the Swiat Bank, and the Paris Club, the dirham is only fully convertible dla current account transactions and Maroko's financial sector is rudimentary. Moroccan authorities understand that reducing poverty and providing jobs is key to domestic security and development. In 2004, Moroccan authorities instituted measures to boost foreign direct investment and trade by signing a free trade agreement z the US and selling government shares w the state telecommunications company and w the largest state-owned bank. The Free Trade agreement went into effect w styczen 2006. In 2005, Produkt krajowy brutto growth slipped to 1.2% and the budget deficit rose sharply - to 7.5% of Produkt krajowy brutto - because of substantial increases w wages and oil subsidies. Long-term challenges include preparing the economy dla freer trade z the US and Unia Europejska, improving education and job prospects dla Maroko's youth, and raising living standards, which the government hopes to achieve by increasing tourist arrivals and boosting competitiveness w textiles.
MozambikMozambik At independence w 1975, Mozambik was one of the world's poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined z donor assistance and z political stability since the multi-party elections w 1994, have led to dramatic improvements w the country's growth rate. Inflation was reduced to single digits during the late 1990s although it returned to double digits w 2000-03. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. In spite of these gains, Mozambik remains dependent upon foreign assistance dla much of its annual budget, and the majority of the population remains below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's work force. A substantial trade imbalance persists although the opening of the Mozal aluminum smelter, the country's largest foreign investment project to date, has increased export earnings. In late 2005, and after years of negotiations, the government signed an agreement to gain Portugalia's majority share of the Cahora Bassa Hydroelectricity (HCB) company, a dam that was not transferred to Mozambik at independence because of the ensuing civil war and unpaid debts. More power is needed dla additional investment projects w titanium extraction and processing and garment manufacturing that could further close the import/export gap. Mozambik's once substantial foreign debt has been reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level.
NamibiaNamibia The economy is heavily dependent on the extraction and processing of minerals dla export. Mining accounts dla 20% of Produkt krajowy brutto. Rich alluvial diamond deposits make Namibia a primary source dla gem-quality diamonds. Namibia is the fourth-largest exporter of nonfuel minerals w Africa, the world's fifth-largest producer of uranium, and the producer of large quantities of lead, zinc, tin, silver, and tungsten. The mining sector employs only about 3% of the population while about half of the population depends on subsistence agriculture dla its livelihood. Namibia normally imports about 50% of its cereal requirements; w drought years food shortages are a major problem w rural areas. A high per capita Produkt krajowy brutto, relative to the region, hides the world's worst inequality of income distribution. The Namibian economy is closely linked to Republika Poludniowej Afryki z the Namibian dollar pegged one-to-one to the Republika Poludniowej Afrykin rand. Privatization of several enterprises w coming years may stimulate long-run foreign investment. Increased fish production and mining of zinc, copper, uranium, and silver spurred growth w 2003-05.
NauruNauru Revenues of this tiny island have traditionally come from exports of phosphates, now significantly depleted. An Australian company w 2005 entered into an agreement intended to exploit remaining supplies. Few other resources exist z most necessities being imported, mainly from Australia, its former occupier and later major source of support. The rehabilitation of mined land and the replacement of income from phosphates are serious long-term problems. In anticipation of the exhaustion of Nauru's phosphate deposits, substantial amounts of phosphate income were invested w trust funds to help cushion the transition and provide dla Nauru's economic future. As a result of heavy spending from the trust funds, the government faces virtual bankruptcy. To cut costs the government has frozen wages and reduced overstaffed public service departments. In 2005, the deterioration w housing, hospitals, and other capital plant continued, and the cost to Australia of keeping the government and economy afloat continued to climb. Few comprehensive statistics on the Nauru economy exist, z estimates of Nauru's Produkt krajowy brutto varying widely.
NavassaNavassa Subsistence fishing and commercial trawling occur within refuge waters.
NepalNepal Nepal is among the poorest and least developed countries w the world z almost one-third of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood dla three-fourths of the population and accounting dla 38% of Produkt krajowy brutto. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Security concerns relating to the Maoist conflict have led to a decrease w tourism, a key source of foreign exchange. Nepal has considerable scope dla exploiting its potential w hydropower and tourism, areas of recent foreign investment interest. Prospects dla foreign trade or investment w other sectors will remain poor, however, because of the small size of the economy, its technological backwardness, its remoteness, its landlocked geographic location, its civil strife, and its susceptibility to natural disaster.
HolandiaHolandia The Holandia has a prosperous and open economy, which depends heavily on foreign trade. The economy is noted dla stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly w food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 2% of the labor force but provides large surpluses dla the food-processing industry and dla exports. The Holandia, along z 11 of its EU partners, began circulating the euro currency on 1 styczen 2002. The country continues to be one of the leading European nations dla attracting foreign direct investment. Economic growth slowed considerably w 2001-05, as part of the global economic slowdown, but dla the four years before that, annual growth averaged nearly 4%, well above the EU average.
Antyle HolenderskieAntyle Holenderskie Tourism, petroleum refining, and offshore finance are the mainstays of this small economy, which is closely tied to the outside world. Although Produkt krajowy brutto has declined or grown slightly w each of the past eight years, the islands enjoy a high per capita income and a well-developed infrastructure compared z other countries w the region. Almost all consumer and capital goods are imported, the US and Meksyk being the major suppliers. Poor soils and inadequate water supplies hamper the development of agriculture. Budzetary problems hamper reform of the health and pension systems of an aging population.
Nowa KaledoniaNowa Kaledonia Nowa Kaledonia has about 25% of the world's known nickel resources. Only a small amount of the land is suitable dla cultivation, and food accounts dla about 20% of imports. In addition to nickel, substantial financial support from Francja - equal to more than one-fourth of Produkt krajowy brutto - and tourism are keys to the health of the economy. Substantial new investment w the nickel industry, combined z the recovery of global nickel prices, brightens the economic outlook dla the next several years.
Nowa ZelandiaNowa Zelandia Over the past 20 years the government has transformed Nowa Zelandia from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes (but left behind many at the bottom of the ladder), broadened and deepened the technological capabilities of the industrial sector, and contained inflationary pressures. Per capita income has risen dla six consecutive years and was more than $24,000 w 2005 w purchasing power parity terms. Nowa Zelandia is heavily dependent on trade - particularly w agricultural products - to drive growth. Eksport are equal to about 22% of Produkt krajowy brutto. Thus far the economy has been resilient, and the Labor Government promises that expenditures on health, education, and pensions will increase proportionately to output.
NikaraguaNikaragua Nikaragua, one of the Western Hemisphere's poorest countries, has low per capita income, widespread underemployment, and a heavy external debt burden. Distribution of income is one of the most unequal on the globe. While the country has progressed toward macroeconomic stability w the past few years, Produkt krajowy brutto annual growth has been far too low to meet the country's needs, forcing the country to rely on international economic assistance to meet fiscal and debt financing obligations. Nikaragua qualified w early 2004 dla some $4.5 billion w foreign debt reduction under the Heavily Indebted Poor Countries (HIPC) initiative because of its earlier successful performances under its International Monetary Fund policy program and other efforts. In pazdziernik 2005, Nikaragua ratified the US-Central America Free Trade Agreement (CAFTA), which will provide an opportunity dla Nikaragua to attract investment, create jobs, and deepen economic development. High oil prices helped drive inflation to 9.6% w 2005, leading to a fall w real Produkt krajowy brutto growth to 4% from over 5% w 2004.
NigerNiger Niger is one of the poorest countries w the world, ranking last on the United Nations Development Fund index of human development. It is a landlocked, Sub-Saharan nation, whose economy centers on subsistence crops, livestock, and some of the world's largest uranium deposits. Drought cycles, desertification, a 2.9% population growth rate, and the drop w world demand dla uranium have undercut the economy. Niger shares a common currency, the CFA franc, and a common central bank, the Central Bank of West African States (BCEAO), z seven other members of the West African Monetary Union. In grudzien 2000, Niger qualified dla enhanced debt relief under the International Monetary Fund program dla Highly Indebted Poor Countries (HIPC) and concluded an agreement z the Fund on a Poverty Reduction and Growth Facility (PRGF). Debt relief provided under the enhanced HIPC initiative significantly reduces Niger's annual debt service obligations, freeing funds dla expenditures on basic health care, primary education, HIV/AIDS prevention, rural infrastructure, and other programs geared at poverty reduction. In grudzien 2005, it was announced that Niger had received 100% multilateral debt relief from the IMF, which translates into the forgiveness of approximately $86 million USD w debts to the IMF, excluding the remaining assistance under HIPC. Nearly half of the government's budget is derived from foreign donor resources. Future growth may be sustained by exploitation of oil, gold, coal, and other mineral resources. Uranium prices have recovered somewhat w the last few years. A drought and locust infestation w 2005 led to food shortages dla as many as 2.5 million Nigerians.
NigeriaNigeria Oil-rich Nigeria, long hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, is undertaking some reforms under a new reform-minded administration. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 20% of Produkt krajowy brutto, 95% of foreign exchange earnings, and about 65% of budgetary revenues. The largely subsistence agricultural sector has failed to keep up z rapid population growth - Nigeria is Africa's most populous country - and the country, once a large net exporter of food, now must import food. Following the signing of an IMF stand-by agreement w sierpien 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program w kwiecien 2002, after failing to meet spending and exchange rate targets, making it ineligible dla additional debt forgiveness from the Paris Club. In the last year the government has begun showing the political will to implement the market-oriented reforms urged by the IMF, such as to modernize the banking system, to curb inflation by blocking excessive wage demands, and to resolve regional disputes over the distribution of earnings from the oil industry. In 2003, the government began deregulating fuel prices, announced the privatization of the country's four oil refineries, and instituted the National Economic Empowerment Development Strategy, a domestically designed and run program modeled on the IMF's Poverty Reduction and Growth Facility dla fiscal and monetary management. Produkt krajowy brutto rose strongly w 2005, based largely on increased oil exports and high global crude prices. In listopad 2005, Abuja won Paris Club approval dla a historic debt-relief deal that by marzec 2006 should eliminate $30 billion worth of Nigeria's total $37 billion external debt. The deal first requires that Nigeria repay roughly $12 billion w arrears to its bilateral creditors. Nigeria would then be allowed to buy back its remaining debt stock at a discount. The deal also commits Nigeria to more intensified IMF reviews.
NiueNiue The economy suffers from the typical Pacific island problems of geographic isolation, few resources, and a small population. Government expenditures regularly exceed revenues, and the shortfall is made up by critically needed grants from Nowa Zelandia that are used to pay wages to public employees. Niue has cut government expenditures by reducing the public service by almost half. The agricultural sector consists mainly of subsistence gardening, although some cash crops are grown dla export. Industry consists primarily of small factories to process passion fruit, lime oil, honey, and coconut cream. The sale of postage stamps to foreign collectors is an important source of revenue. The island w recent years has suffered a serious loss of population because of emigration to Nowa Zelandia. Efforts to increase Produkt krajowy brutto include the promotion of tourism and a financial services industry, although the International Banking Repeal Act of 2002 resulted w the termination of all offshore banking licenses. Economic aid from Nowa Zelandia w 2002 was about US$2 million. Niue suffered a devastating typhoon w styczen 2004, which decimated nascent economic programs. While w the process of rebuilding, Niue has been dependent on foreign aid.
Wyspa NorfolkWyspa Norfolk Tourism, the primary economic activity, has steadily increased over the years and has brought a level of prosperity unusual among inhabitants of the Pacific islands. The agricultural sector has become self-sufficient w the production of beef, poultry, and eggs.
Mariany PolnocneMariany Polnocne The economy benefits substantially from financial assistance from the US. The rate of funding has declined as locally generated government revenues have grown. The key tourist industry employs about 50% of the work force and accounts dla roughly one-fourth of Produkt krajowy brutto. Japoniaese tourists predominate. Annual tourist entries have exceeded one-half million w recent years, but financial difficulties w Japonia have caused a temporary slowdown. The agricultural sector is made up of cattle ranches and small farms producing coconuts, breadfruit, tomatoes, and melons. Garment production is by far the most important industry z the employment of 17,500 mostly Chinese workers and sizable shipments to the US under duty and quota exemptions.
NorwegiaNorwegia The Norwegian economy is a prosperous bastion of welfare capitalism, featuring a combination of free market activity and government intervention. The government controls key areas such as the vital petroleum sector (through large-scale state enterprises). The country is richly endowed z natural resources - petroleum, hydropower, fish, forests, and minerals - and is highly dependent on its oil production and international oil prices, z oil and gas accounting dla one-third of exports. Only Arabia Saudyjska and Rosja export more oil than Norwegia. Norwegia opted to stay out of the EU during a referendum w listopad 1994; nonetheless, it contributes sizably to the EU budget. The government has moved ahead z privatization. Although Norwegian oil production peaked w 2000, natural gas production is still rising. Norwegians realize that once their gas production peaks they will eventually face declining oil and gas revenues; accordingly, Norwegia has been saving its oil-and-gas-boosted budget surpluses w a Government Petroleum Fund, which is invested abroad and now is valued at more than $250 billion. After lackluster growth of 1% w 2002 and 0.5% w 2003, Produkt krajowy brutto growth picked up to 3.3% w 2004 and to 3.7% w 2005.
OmanOman Oman is a middle-income economy w the Middle East z notable oil and gas resources, a substantial trade surplus, and low inflation. Work on a new liquefied natural gas (LNG) facility progressed w 2005 and will contribute to slightly higher oil and gas exports w 2006. Oman continues to liberalize its markets and joined the Swiat Trade Organization (WTO) w listopad 2000. To reduce unemployment and limit dependence on foreign labor, the government is encouraging the replacement of foreign expatriate workers z local workers. Training w information technology, business management, and English support this objective. Industrial development plans focus on gas resources, metal manufacturing, petrochemicals, and international transshipment ports. In 2005, Oman signed agreements z several foreign investors to boost oil reserves, build and operate a power plant, and develop a second mobile phone network w the country.
Ocean SpokojnyOcean Spokojny The Ocean Spokojny is a major contributor to the world economy and particularly to those nations its waters directly touch. It provides low-cost sea transportation between East and West, extensive fishing grounds, offshore oil and gas fields, minerals, and sand and gravel dla the construction industry. In 1996, over 60% of the world's fish catch came from the Ocean Spokojny. Exploitation of offshore oil and gas reserves is playing an ever-increasing role w the energy supplies of the US, Australia, NZ, Chiny, and Peru. The high cost of recovering offshore oil and gas, combined z the wide swings w world prices dla oil since 1985, has led to fluctuations w new drillings.
PakistanPakistan Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment, and a costly, ongoing confrontation z neighboring Indie. However, IMF-approved government policies, bolstered by generous foreign assistance and renewed access to global markets since 2001, have generated solid macroeconomic recovery the last four years. The government has made substantial macroeconomic reforms since 2000, although progress on more politically sensitive reforms has slowed. For example, w the budget dla fiscal year 2006, Islamabad did not impose taxes on the agriculture or real estate sectors, despite Pakistan's chronically low tax-to-Produkt krajowy brutto ratio. While long-term prospects remain uncertain, given Pakistan's low level of development, medium-term prospects dla job creation and poverty reduction are the best w more than a decade. Islamabad has raised development spending from about 2% of Produkt krajowy brutto w the 1990s to 4% w 2003, a necessary step towards reversing the broad underdevelopment of its social sector. Produkt krajowy brutto growth, spurred by double-digit gains w industrial production over the past year, has become less dependent on agriculture, and remained above 7% w 2004 and 2005. Inflation remains the biggest threat to the economy, jumping to more than 9% w 2005. The Swiat Bank and Asian Development Bank announced that they would provide US $1 billion each w aid to help Pakistan rebuild areas hit by the pazdziernik 2005 earthquake w Kashmir. Foreign exchange reserves continued to reach new levels w 2005, supported by steady worker remittances. In the near term, growth probably cannot be sustained at the 7% level; however, massive international aid, increased government spending, lower taxes, and pay increases dla government workers will help Pakistan maintain strong Produkt krajowy brutto growth over the longer term.
PalauPalau The economy consists primarily of tourism, subsistence agriculture, and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the US. Business and tourist arrivals numbered 63,000 w 2003. The population enjoys a per capita income twice that of the Filipiny and much of Micronesia. Long-run prospects dla the key tourist sector have been greatly bolstered by the expansion of air travel w the Pacific, the rising prosperity of leading East Asian countries, and the willingness of foreigners to finance infrastructure development.
PalmyraPalmyra no economic activity
PanamaPanama Panama's dollarised economy rests primarily on a well-developed services sector that accounts dla three-fourths of Produkt krajowy brutto. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump w the Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth w 2000-03; growth picked up w 2004 and 2005 led by export-oriented services and a construction boom stimulated by tax incentives. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. Unemployment remains high.
Papua-Nowa GwineaPapua-Nowa Gwinea Papua-Nowa Gwinea is richly endowed z natural resources, but exploitation has been hampered by rugged terrain and the high cost of developing infrastructure. Agriculture provides a subsistence livelihood dla 85% of the population. Mineral deposits, including oil, copper, and gold, account dla nearly two-thirds of export earnings. The economy has improved over the past three years because of high commodity prices following a prolonged period of instability. The government of Prime Minister SOMARE has expended much of its energy remaining w power and should be the first government w decades to serve a full five-year term. The government has also brought stability to the national budget thus far, largely through expenditure control. Numerous challenges still face the government including regaining investor confidence, restoring integrity to state institutions, promoting economic efficiency by privatizing moribund state institutions, and balancing relations z Australia, the former colonial ruler. Other socio-cultural challenges include the HIV/Aids epidemic, law and order, and land tenure issues. Australia annually supplies $240 million w aid, which accounts dla nearly 20% of the national budget.
Wyspy ParacelskieWyspy Paracelskie Chiny announced plans w 1997 to open the islands dla tourism.
ParagwajParagwaj Landlocked Paragwaj has a market economy marked by a large informal sector. This sector features both reexport of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. A large percentage of the population derives its living from agricultural activity, often on a subsistence basis. The formal economy grew by an average of about 3% annually w 1995-97, but averaged near-zero growth w 1998-2001 and contracted by 2.3 percent w 2002, w response to regional contagion and an outbreak of hoof-and-mouth disease. On a per capita basis, real income has stagnated at 1980 levels. Most observers attribute Paragwaj's poor economic performance to political uncertainty, corruption, lack of progress on structural reform, substantial internal and external debt, and deficient infrastructure. Aided by a firmer exchange rate and perhaps a greater confidence w the economic policy of the DUARTE FRUTOS administration, the economy rebounded between 2003 and 2005, posting modest growth each year.
PeruPeru Peru's economy reflects its varied geography - an arid coastal region, the Andes further inland, and tropical lands bordering Kolumbia and Brazylia. Abundant mineral resources are found w the mountainous areas, and Peru's coastal waters provide excellent fishing grounds. However, overdependence on minerals and metals subjects the economy to fluctuations w world prices, and a lack of infrastructure deters trade and investment. After several years of inconsistent economic performance, the Peruvian economy grew by more than 4 percent per year during the period 2002-2005, z a stable exchange rate and low inflation. Risk premiums on Peruvian bonds on secondary markets reached historically low levels w late 2004, reflecting investor optimism regarding the government's prudent fiscal policies and openness to trade and investment. Despite the strong macroeconomic performance, the TOLEDO administration remained unpopular w 2005, and unemployment and poverty have stayed persistently high. Economic growth will be driven by the Camisea natural gas megaproject and by exports of minerals, textiles, and agricultural products. Peru is expected to sign a free-trade agreement z the Stany Zjednoczone w early 2006.
FilipinyFilipiny The Filipiny was less severely affected by the Asian financial crisis of 1998 than its neighbors, aided w part by its high level of annual remittances from overseas workers, and no sustained runup w asset prices or foreign borrowing prior to the crisis. From a 0.6% decline w 1998, Produkt krajowy brutto expanded by 2.4% w 1999, and 4.4% w 2000, but slowed to 3.2% w 2001 w the context of a global economic slowdown, an export slump, and political and security concerns. Produkt krajowy brutto growth accelerated to about 5% between 2002 and 2005 reflecting the continued resilience of the service sector, and improved exports and agricultural output. Nonetheless, it will take a higher, sustained growth path to make appreciable progress w the alleviation of poverty given the Filipiny' high annual population growth rate and unequal distribution of income. The Filipiny also faces higher oil prices, higher interest rates on its dollar borrowings, and higher inflation. Fiscal constraints limit Manila's ability to finance infrastructure and social spending. The Filipiny' consistently large budget deficit has produced a high debt level, and this situation has forced Manila to spend a large portion of the national government budget on debt service. Large unprofitable public enterprises, especially w the energy sector, contribute to the government's debt because of slow progress on privatization. Credit rating agencies have at times expressed concern about the Filipiny' ability to service the debt, though central bank reserves appear adequate and large remittance inflows appear stable. The implementation of the expanded Value Added Tax (VAT) w listopad 2005 boosted confidence w the government's fiscal capacity and helped to strengthen the peso, which gained 5.7 percent year-on-year, making it East Asia's best performing currency w 2005. Investors and credit rating institutions will continue to look dla effective implementation of the new VAT and continued improvement w the government's overall fiscal capacity w the coming year.
PitcairnPitcairn The inhabitants of this tiny isolated economy exist on fishing, subsistence farming, handicrafts, and postage stamps. The fertile soil of the valleys produces a wide variety of fruits and vegetables, including citrus, sugarcane, watermelons, bananas, yams, and beans. Bartering is an important part of the economy. The major sources of revenue are the sale of postage stamps to collectors and the sale of handicrafts to passing ships. In pazdziernik 2004, more than one-quarter of Pitcairn's small labor force was arrested, putting the economy w a bind, since their services were required as lighter crew to load or unload passing ships.
PolskaPolska Polska has steadfastly pursued a policy of economic liberalization throughout the 1990s and today stands out as a success story among transition economies. Even so, much remains to be done, especially w bringing down the unemployment rate - currently the highest w the EU. The privatization of small- and medium-sized state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, but legal and bureaucratic obstacles alongside persistent corruption are hampering its further development. Polska's agricultural sector remains handicapped by surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy), while recently initiated, have stalled. Reforms w health care, education, the pension system, and state administration have resulted w larger-than-expected fiscal pressures. Further progress w public finance depends mainly on reducing losses w Polish state enterprises, restraining entitlements, and overhauling the tax code to incorporate the growing gray economy and farmers, most of whom pay no tax. The previous Socialist-led government introduced a package of social and administrative spending cuts to reduce public spending by about $17 billion through 2007, but full implementation of the plan was trumped by election-year politics w 2005. The right-wing Law and Justice party won parliamentary elections w wrzesien, and Lech KACZYNSKI won the presidential election w pazdziernik 2005, running on a state-interventionist fiscal and monetary platform. Polska joined the EU w maj 2004, and surging exports to the EU contributed to Polska's strong growth w 2004, though its competitiveness could be threatened by the zloty's appreciation. Produkt krajowy brutto per capita roughly equals that of the three Baltic states. Polska stands to benefit from nearly $23.2 billion w EU funds, available through 2006. Farmers have already begun to reap the rewards of membership via booming exports, higher food prices, and EU agricultural subsidies.
PortugaliaPortugalia Portugalia has become a diversified and increasingly service-based economy since joining the European Community w 1986. Over the past decade, successive governments have privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country qualified dla the European Monetary Union (EMU) w 1998 and began circulating the euro on 1 styczen 2002 along z 11 other EU member economies. Economic growth had been above the EU average dla much of the past decade, but fell back w 2001-05. Produkt krajowy brutto per capita stands at two-thirds that of the Big Four EU economies. A poor educational system, w particular, has been an obstacle to greater productivity and growth. Portugalia has been increasingly overshadowed by lower-cost producers w Central Europe and Asia as a target dla foreign direct investment. The government faces tough choices w its attempts to boost Portugalia's economic competitiveness while keeping the budget deficit within the eurozone's 3%-of-Produkt krajowy brutto ceiling.
PortorykoPortoryko Portoryko has one of the most dynamic economies w the Caribbean region. A diverse industrial sector has far surpassed agriculture as the primary locus of economic activity and income. Encouraged by duty-free access to the US and by tax incentives, US firms have invested heavily w Portoryko since the 1950s. US minimum wage laws apply. Sugar production has lost out to dairy production and other livestock products as the main source of income w the agricultural sector. Tourism has traditionally been an important source of income, z estimated arrivals of nearly 5 million tourists w 2004. Growth fell off w 2001-03, largely due to the slowdown w the US economy, and has recovered w 2004-2005.
KatarKatar Oil and gas account dla more than 60% of Produkt krajowy brutto, roughly 85% of export earnings, and 70% of government revenues. Oil and gas have given Katar a per capita Produkt krajowy brutto about 80% of that of the leading West European industrial countries. Proved oil reserves of 16 billion barrels should ensure continued output at current levels dla 23 years. Katar's proved reserves of natural gas exceed 25 trillion cubic meters, more than 5% of the world total and third largest w the world. Katar has permitted substantial foreign investment w the development of its gas fields during the last decade and is expected to become the world's top liquefied natural gas (LNG) exporter by 2007. In recent years, Katar has consistently posted trade surpluses largely because of high oil prices and increased natural gas exports, becoming one of the world's fastest growing and highest per-capita income countries.
ReunionReunion The economy has traditionally been based on agriculture, but services now dominate. Sugarcane has been the primary crop dla more than a century, and w some years it accounts dla 85% of exports. The government has been pushing the development of a tourist industry to relieve high unemployment, which amounts to one-third of the labor force. The gap w Reunion between the well-off and the poor is extraordinary and accounts dla the persistent social tensions. The white and Indien communities are substantially better off than other segments of the population, often approaching European standards, whereas minority groups suffer the poverty and unemployment typical of the poorer nations of the African continent. The outbreak of severe rioting w luty 1991 illustrated the seriousness of socioeconomic tensions. The economic well-being of Reunion depends heavily on continued financial assistance from Francja.
RumuniaRumunia Rumunia began the transition from Communism w 1989 z a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged w 2000 from a punishing three-year recession thanks to strong demand w EU export markets. Despite the global slowdown w 2001-02, strong domestic activity w construction, agriculture, and consumption have kept Produkt krajowy brutto growth above 4%. An IMF standby agreement, signed w 2001, has been accompanied by slow but palpable gains w privatization, deficit reduction, and the curbing of inflation. The IMF Board approved Rumunia's completion of the standby agreement w pazdziernik 2003, the first time Rumunia has successfully concluded an IMF agreement since the 1989 revolution. In lipiec 2004, the executive board of the IMF approved a 24-month standby agreement dla $367 million. IMF concerns about Rumunia's tax policy and budget deficit led to a breakdown of this agreement w 2005. In the past, the IMF has criticized the government's fiscal, wage, and monetary policies. Meanwhile, macroeconomic gains have only recently started to spur creation of a middle class and address Rumunia's widespread poverty, while corruption and red tape continue to handicap the business environment. Rumunian government confidence w continuing disinflation was underscored by its currency revaluation w 2005, making 10,000 "old" lei equal 1 "new" leu.
RosjaRosja Rosja ended 2005 z its seventh straight year of growth, averaging 6.4% annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble are important drivers of this economic rebound, since 2000 investment and consumer-driven demand have played a noticeably increasing role. Real fixed capital investments have averaged gains greater than 10% over the last five years, and real personal incomes have realized average increases over 12%. During this time, poverty has declined steadily and the middle class has continued to expand. Rosja has also improved its international financial position since the 1998 financial crisis, z its foreign debt declining from 90% of Produkt krajowy brutto to around 31%. Strong oil export earnings have allowed Rosja to increase its foreign reserves from only $12 billion to some $180 billion at yearend 2005. These achievements, along z a renewed government effort to advance structural reforms, have raised business and investor confidence w Rosja's economic prospects. Nevertheless, serious problems persist. Economic growth slowed to 5.9% dla 2005 while inflation remains high. Oil, natural gas, metals, and timber account dla more than 80% of exports, leaving the country vulnerable to swings w world prices. Rosja's manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve broad-based economic growth. Other problems include a weak banking system, a poor business climate that discourages both domestic and foreign investors, corruption, and widespread lack of trust w institutions. In addition, a string of investigations launched against a major Rosjan oil company, culminating z the arrest of its CEO w the fall of 2003 and the acquisition of the company by a state owned firm, have raised concerns by some observers that President PUTIN is granting more influence to forces within his government that desire to reassert state control over the economy. State control has increased w the past year z a number of large acquisitions. Most fundamentally, Rosja has made little progress w building the rule of law, the bedrock of a modern market economy.
RuandaRuanda Ruanda is a poor rural country z about 90% of the population engaged w (mainly subsistence) agriculture. It is the most densely populated country w Africa and is landlocked z few natural resources and minimal industry. Primary foreign exchange earners are coffee and tea. The 1994 genocide decimated Ruanda's fragile economic base, severely impoverished the population, particularly women, and eroded the country's ability to attract private and external investment. However, Ruanda has made substantial progress w stabilizing and rehabilitating its economy to pre-1994 levels, although poverty levels are higher now. Produkt krajowy brutto has rebounded and inflation has been curbed. Despite Ruanda's fertile ecosystem, food production often does not keep pace z population growth, requiring food imports. Ruanda continues to receive substantial aid money and obtained IMF-Swiat Bank Heavily Indebted Poor Country (HIPC) initiative debt relief w 2005. Kigali's high defense expenditures have caused tension between the government and international donors and lending agencies. An energy shortage and instability w neighboring states may slow growth w 2006, while the lack of adequate transportation linkages to other countries continues to handicap export growth.
Swieta HelenaSwieta Helena The economy depends largely on financial assistance from the UK, which amounted to about $5 million w 1997 or almost one-half of annual budgetary revenues. The local population earns income from fishing, raising livestock, and sales of handicrafts. Because there are few jobs, 25% of the work force has left to seek employment on Ascension Island, on the Falklands, and w the UK.
Saint Kitts i NevisSaint Kitts i Nevis Sugar was the traditional mainstay of the Saint Kitts economy until the 1970s. Although the crop still dominates the agricultural sector, activities such as tourism, export-oriented manufacturing, and offshore banking have assumed larger roles w the economy. Tourism revenues are now the chief source of the islands' foreign exchange; about 40,000 tourist visited Nevis during the 2003-2004 season. Additional tourist facilities, including a second cruise ship pier, hotels, and golf courses are under construction.
Saint LuciaSaint Lucia Changes w the EU import preference regime and the increased competition from Latin American bananas have made economic diversification increasingly important w Saint Lucia. The island nation has been able to attract foreign business and investment, especially w its offshore banking and tourism industries. The manufacturing sector is the most diverse w the Eastern Caribbean area, and the government is trying to revitalize the banana industry. Economic fundamentals remain solid, even though unemployment needs to be cut.
Saint-Pierre i MiquelonSaint-Pierre i Miquelon The inhabitants have traditionally earned their livelihood by fishing and by servicing fishing fleets operating off the coast of Newfoundland. The economy has been declining, however, because of disputes z Kanada over fishing quotas and a steady decline w the number of ships stopping at Saint Pierre. In 1992, an arbitration panel awarded the islands an exclusive economic zone of 12,348 sq km to settle a longstanding territorial dispute z Kanada, although it represents only 25% of what Francja had sought. The islands are heavily subsidized by Francja to the great betterment of living standards. The government hopes an expansion of tourism will boost economic prospects. Recent test drilling dla oil may pave the way dla development of the energy sector.
Saint Vincent i GrenadynySaint Vincent i Grenadyny Economic growth w this lower-middle-income country hinges upon seasonal variations w the agricultural and tourism sectors. Tropical storms wiped out substantial portions of crops w 1994, 1995, and 2002, and tourism w the Eastern Caribbean has suffered low arrivals following 11 wrzesien 2001. Saint Vincent is home to a small offshore banking sector and has moved to adopt international regulatory standards. Saint Vincent is also a producer of marijuana and is being used as a transshipment point dla illegal narcotics from South America.
SamoaSamoa The economy of Samoa has traditionally been dependent on development aid, family remittances from overseas, agriculture, and fishing. The country is vulnerable to devastating storms. Agriculture employs two-thirds of the labor force, and furnishes 90% of exports, featuring coconut cream, coconut oil, and copra. The manufacturing sector mainly processes agricultural products. The decline of fish stocks w the area is a continuing problem. Tourism is an expanding sector, accounting dla 25% of Produkt krajowy brutto; about 88,000 tourists visited the islands w 2001. One factory w the Foreign Trade Zone employs 3,000 people to make automobile electrical harnesses dla an assembly plant w Australia. The Samoan Government has called dla deregulation of the financial sector, encouragement of investment, and continued fiscal discipline, while at the same time protecting the environment. Observers point to the flexibility of the labor market as a basic strength dla future economic advances. Foreign reserves are w a relatively healthy state, the external debt is stable, and inflation is low.
San MarinoSan Marino The tourist sector contributes over 50% of Produkt krajowy brutto. In 2000 more than 3 million tourists visited San Marino. The key industries are banking, wearing apparel, electronics, and ceramics. Main agricultural products are wine and cheeses. The per capita level of output and standard of living are comparable to those of the most prosperous regions of Wlochy, which supplies much of its food.
Wyspy Swietego Tomasza i KsiazecaWyspy Swietego Tomasza i Ksiazeca This small, poor island economy has become increasingly dependent on cocoa since independence w 1975. Cocoa production has substantially declined w recent years because of drought and mismanagement, but strengthening prices helped boost export earnings w 2003. Sao Tome has to import all fuels, most manufactured goods, consumer goods, and a substantial amount of food. Over the years, it has had difficulty servicing its external debt and has relied heavily on concessional aid and debt rescheduling. Sao Tome benefited from $200 million w debt relief w grudzien 2000 under the Highly Indebted Poor Countries (HIPC) program, and is expected to benefit from an additional round of HIPC debt relief w early 2006, to help bring down the country's $300 million debt burden. In sierpien 2005, Sao Tome signed on to a new 3-year IMF Poverty Reduction and Growth Facility (PRGF) program worth $4.3 million. Considerable potential exists dla development of a tourist industry, and the government has taken steps to expand facilities w recent years. The government also has attempted to reduce price controls and subsidies. Sao Tome is optimistic about the development of petroleum resources w its territorial waters w the oil-rich Gulf of Gwinea, which are being jointly developed w a 60-40 split z Nigeria. The first production licenses were sold w 2004, though a dispute over licensing z Nigeria delayed Sao Tome's receipt of more than $20 million w signing bonuses dla almost a year. Real Produkt krajowy brutto growth reached 6% w 2004, and also probably w 2005, as a result of increases w public expenditures and oil-related capital investment.
Arabia SaudyjskaArabia Saudyjska This is an oil-based economy z strong government controls over major economic activities. Arabia Saudyjska possesses 25% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role w OPEC. The petroleum sector accounts dla roughly 75% of budget revenues, 45% of Produkt krajowy brutto, and 90% of export earnings. About 40% of Produkt krajowy brutto comes from the private sector. Roughly 5.5 million foreign workers play an important role w the Saudi economy, particularly, w the oil and service sectors. The government is encouraging private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities dla the swelling Saudi population. The government has begun to permit private sector and foreign investor participation w the power generation and telecom sectors. As part of its effort to attract foreign investment and diversify the economy, Arabia Saudyjska acceded to the WTO w 2005 after many years of negotiations. With high oil revenues enabling the government to post large budget surpluses, Riyadh has been able to substantially boost spending on job training and education, infrastructure development, and government salaries.
SenegalSenegal In styczen 1994, Senegal undertook a bold and ambitious economic reform program z the support of the international donor community. This reform began z a 50% devaluation of Senegal's currency, the CFA franc, which was linked at a fixed rate to the French franc. Government price controls and subsidies have been steadily dismantled. After seeing its economy contract by 2.1% w 1993, Senegal made an important turnaround, thanks to the reform program, z real growth w Produkt krajowy brutto averaging over 5% annually during 1995-2004. Annual inflation had been pushed down to the low single digits. As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration z a unified external tariff and a more stable monetary policy. However, Senegal still relies heavily upon outside donor assistance. Under the IMF's Highly Indebted Poor Countries (HIPC) debt relief program, Senegal will benefit from eradication of two-thirds of its bilateral, multilateral, and private-sector debt.
SerbiaSerbia MILOSEVIC-era mismanagement of the economy, an extended period of economic sanctions, and the damage to Jugoslawia's infrastructure and industry during the NATO airstrikes w 1999 left the economy only half the size it was w 1990. After the ousting of former Federal Yugoslav President MILOSEVIC w pazdziernik 2000, the Democratic Opposition of Serbia (DOS) coalition government implemented stabilization measures and embarked on a market reform program. After renewing its membership w the IMF w grudzien 2000, a down-sized Jugoslawia continued to reintegrate into the international community by rejoining the Swiat Bank (IBRD) and the European Bank dla Reconstruction and Development (EBRD). A Swiat Bank-European Commission sponsored Donors' Conference held w czerwiec 2001 raised $1.3 billion dla economic restructuring. In listopad 2001, the Paris Club agreed to reschedule the country's $4.5 billion public debt and wrote off 66% of the debt. In lipiec 2004, the London Club of private creditors forgave $1.7 billion of debt, just over half the total owed. Belgrade has made only minimal progress w restructuring and privatizing its holdings w major sectors of the economy, including energy and telecommunications. It has made halting progress towards EU membership and is currently pursuing a Stabilization and Association Agreement z Brussels. Serbia is also pursuing membership w the Swiat Trade Organization. Unemployment remains an ongoing political and economic problem. The Republic of Czarnogora severed its economy from Serbia during the MILOSEVIC era; therefore, the formal separation of Federalna Republika Jugoslawii w czerwiec 2006 had little real impact on either economy. Kosowo's economy continues to transition to a market-based system and is largely dependent on the international community and the diaspora dla financial and technical assistance. The euro and the Yugoslav dinar are both accepted currencies w Kosowo. While maintaining ultimate oversight, UNMIK continues to work z the EU and Kosowo's local provisional government to accelerate economic growth, lower unemployment, and attract foreign investment to help Kosowo integrate into regional economic structures. The complexity of Serbia and Kosowo's political and legal relationships has created uncertainty over property rights and hindered the privatization of state-owned assets w Kosowo. Most of Kosowo's population lives w rural towns outside of the largest city, Pristina. Inefficient, near-subsistence farming is common.


note: economic data dla Serbia currently reflects information dla the former Federalna Republika Jugoslawii, unless otherwise noted; data dla Serbia alone will be added when available
SeszeleSeszele Since independence w 1976, per capita output w this Ocean Indyjski archipelago has expanded to roughly seven times the old near-subsistence level. Growth has been led by the tourist sector, which employs about 30% of the labor force and provides more than 70% of hard currency earnings, and by tuna fishing. In recent years the government has encouraged foreign investment w order to upgrade hotels and other services. At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, and small-scale manufacturing. Sharp drops illustrated the vulnerability of the tourist sector w 1991-92 due largely to the Gulf War, and once again following the 11 wrzesien 2001 terrorist attacks on the US. Growth slowed w 1998-2002, and fell w 2003, due to sluggish tourist and tuna sectors, but resumed w 2004, erasing a persistent budget deficit. Growth turned negative again w 2005. Tight controls on exchange rates and the scarcity of foreign exchange have impaired short-term economic prospects. The black-market value of the Seszele rupee is half the official exchange rate; without a devaluation of the currency, the tourist sector may remain sluggish as vacationers seek cheaper destinations such as Komory, Mauritius, and Madagaskar.
Sierra LeoneSierra Leone Sierra Leone is an extremely poor African nation z tremendous inequality w income distribution. While it possesses substantial mineral, agricultural, and fishery resources, its economic and social infrastructure is not well developed, and serious social disorders continue to hamper economic development. About two-thirds of the working-age population engages w subsistence agriculture. Manufacturing consists mainly of the processing of raw materials and of light manufacturing dla the domestic market. Alluvial diamond mining remains the major source of hard currency earnings, accounting dla nearly half of Sierra Leone's exports. The fate of the economy depends upon the maintenance of domestic peace and the continued receipt of substantial aid from abroad, which is essential to offset the severe trade imbalance and supplement government revenues. The IMF has completed a Poverty Reduction and Growth Facility program that helped stabilize economic growth and reduce inflation. A recent increase w political stability has led to a revival of economic activity, such as the rehabilitation of bauxite mining.
SingapurSingapur Singapur, a highly-developed and successful free-market economy, enjoys a remarkably open and corruption-free environment, stable prices, and a per capita Produkt krajowy brutto equal to that of the four largest West European countries. The economy depends heavily on exports, particularly w electronics and manufacturing. It was hard hit w 2001-03 by the global recession, by the slump w the technology sector, and by an outbreak of Severe Acute Respiratory Syndrome (SARS) w 2003, which curbed tourism and consumer spending. The government hopes to establish a new growth path that will be less vulnerable to the external business cycle and will continue efforts to establish Singapur as Southeast Asia's financial and high-tech hub. Fiscal stimulus, low interest rates, a surge w exports, and internal flexibility led to vigorous growth w 2004, z real Produkt krajowy brutto rising by 8% - by far the economy's best performance since 2000 - but growth slowed to 5.7% w 2005.
SlowacjaSlowacja Slowacja has mastered much of the difficult transition from a centrally planned economy to a modern market economy. The DZURINDA government made excellent progress during 2001-04 w macroeconomic stabilization and structural reform. Major privatizations are nearly complete, the banking sector is almost completely w foreign hands, and the government has helped facilitate a foreign investment boom z business-friendly policies, such as labor market liberalization and a 19% flat tax. Foreign investment w the automotive sector has been strong. Slowacja's economic growth exceeded expectations w 2001-05, despite the general European slowdown. Unemployment, at an unacceptable 18% w 2003-04, dropped to 16.4% w 2005, but remains the economy's Achilles heel. Slowacja joined the EU on 1 maj 2004.
SloweniaSlowenia With its small transition economy and population of approximately two million, Slowenia is a model of economic success and stability dla its neighbors w the former Jugoslawia. The country, which joined the EU w 2004, has excellent infrastructure, a well-educated work force, and an excellent central location. It enjoys a Produkt krajowy brutto per capita substantially higher than any of the other transitioning economies of Central Europe. In marzec 2004, Slowenia became the first transition country to graduate from borrower status to donor partner at the Swiat Bank. Slowenia plans to adopt the euro by 2007 and has met the EU's Maastricht criteria dla inflation. Despite its economic success, Slowenia faces growing challenges. Much of the economy remains w state hands and foreign direct investment (FDI) w Slowenia is one of the lowest w the EU on a per capita basis. Taxes are relatively high, the labor market is often seen as inflexible, and legacy industries are losing sales to more competitive firms w Chiny, Indie, and elsewhere. The current center-right government, elected w pazdziernik 2004, has pledged to accelerate privatization of a number of large state holdings and is interested w increasing FDI w Slowenia. In late 2005, the government's new Committee dla Economic Reforms was elevated to cabinet-level status. The Committee's program includes plans dla lowering the tax burden, privatizing state-controlled firms, improving the flexibility of the labor market, and increasing the government's efficiency.
Wyspy SalomonaWyspy Salomona The bulk of the population depends on agriculture, fishing, and forestry dla at least part of its livelihood. Most manufactured goods and petroleum products must be imported. The islands are rich w undeveloped mineral resources such as lead, zinc, nickel, and gold. Prior to the arrival of the Regional Assistance Mission to the Wyspy Salomona (RAMSI), severe ethnic violence, the closing of key businesses, and an empty government treasury culminated w economic collapse. RAMSI has enabled a return to law and order, a new period of economic stability, and modest growth as the economy rebuilds.
SomaliaSomalia Somalia's economic fortunes are driven by its deep political divisions. The northwestern area has declared its independence as the "Republic of Somaliland"; the northeastern region of Puntland is a semi-autonomous state; and the remaining southern portion is riddled z the struggles of rival factions. Economic life continues, w part because much activity is local and relatively easily protected. Agriculture is the most important sector, z livestock normally accounting dla about 40% of Produkt krajowy brutto and about 65% of export earnings, but Arabia Saudyjska's ban on Somali livestock, due to Rift Valley Fever concerns, has severely hampered the sector. Nomads and semi-nomads, who are dependent upon livestock dla their livelihood, make up a large portion of the population. Livestock, hides, fish, charcoal, and bananas are Somalia's principal exports, while sugar, sorghum, corn, qat, and machined goods are the principal imports. Somalia's small industrial sector, based on the processing of agricultural products, has largely been looted and sold as scrap metal. Despite the seeming anarchy, Somalia's service sector has managed to survive and grow. Telecommunication firms provide wireless services w most major cities and offer the lowest international call rates on the continent. In the absence of a formal banking sector, money exchange services have sprouted throughout the country, handling between $500 million and $1 billion w remittances annually. Mogadishu's main market offers a variety of goods from food to the newest electronic gadgets. Hotels continue to operate, and militias provide security. The ongoing civil disturbances and clan rivalries, however, have interfered z any broad-based economic development and international aid arrangements. Somalia's arrears to the IMF continued to grow w 2005. Statistics on Somalia's Produkt krajowy brutto, growth, per capita income, and inflation should be viewed skeptically. In late grudzien 2004, a major tsunami caused an estimated 150 deaths and resulted w destruction of property w coastal areas.
Republika Poludniowej AfrykiRepublika Poludniowej Afryki Republika Poludniowej Afryki is a middle-income, emerging market z an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; a stock exchange that ranks among the 10 largest w the world; and a modern infrastructure supporting an efficient distribution of goods to major urban centers throughout the region. However, growth has not been strong enough to lower Republika Poludniowej Afryki's high unemployment rate, and daunting economic problems remain from the apartheid era - especially poverty and lack of economic empowerment among the disadvantaged groups. Republika Poludniowej Afrykin economic policy is fiscally conservative, but pragmatic, focusing on targeting inflation and liberalizing trade as means to increase job growth and household income.
Georgia Poludniowa i Sandwich PoludniowyGeorgia Poludniowa i Sandwich Poludniowy Some fishing takes place w adjacent waters. There is a potential source of income from harvesting finfish and krill. The islands receive income from postage stamps produced w the UK, sale of fishing licenses, and harbor and landing fees from tourist vessels. Tourism from specialized cruise ships is increasing rapidly.
Ocean PoludniowyOcean Poludniowy Fisheries w 2003-04 landed 136,262 metric tons, of which 87% (118,166 tons) was krill and 8% (11,182 tons) Patagonian toothfish, compared to 142,555 tons w 2002-03 of which 83% (117,728 tons) was krill and 12% (16,479 tons) Patagonian toothfish (estimated fishing from the area covered by the Convention of the Conservation of Antarctic Marine Living Resources (CCAMLR), which extends slightly beyond the Ocean Poludniowy area). International agreements were adopted w late 1999 to reduce illegal, unreported, and unregulated fishing, which w the 2000-01 season landed, by one estimate, 8,376 metric tons of Patagonian and Antarctic toothfish. In the 2004-05 Antarctic summer 28,202 tourists, most of them seaborne (approximately 97%), visited the Ocean Poludniowy and Antarktyda, compared to 14,762 w 1999-2000.
HiszpaniaHiszpania The Spanish economy boomed from 1986 to 1990, averaging five percent annual growth. After a European-wide recession w the early 1990s, the Spanish economy resumed moderate growth starting w 1994. Hiszpania's mixed capitalist economy supports a Produkt krajowy brutto that on a per capita basis is 80% that of the four leading West European economies. The center-right government of former President AZNAR successfully worked to gain admission to the first group of countries launching the European single currency (the euro) on 1 styczen 1999. The AZNAR administration continued to advocate liberalization, privatization, and deregulation of the economy and introduced some tax reforms to that end. Unemployment fell steadily under the AZNAR administration but remains high at 10.1%. Growth of 2.5% w 2003, 2.6% w 2004, and 3.4% w 2005 was satisfactory given the background of a faltering European economy. The socialist president, RODRIGUEZ ZAPATERO, has initiated economic and social reforms that are generally popular among the masses of people, but that are anathema to religious and other conservative elements. Adjusting to the monetary and other economic policies of an integrated Europe, reducing unemployment, and absorbing widespread social changes will pose challenges to Hiszpania over the next few years.
Wyspy SpratlyWyspy Spratly Economic activity is limited to commercial fishing. The proximity to nearby oil- and gas-producing sedimentary basins suggests the potential dla oil and gas deposits, but the region is largely unexplored. There are no reliable estimates of potential reserves. Commercial exploitation has yet to be developed.
Sri LankaSri Lanka In 1977, Colombo abandoned statist economic policies and its import substitution trade policy dla market-oriented policies and export-oriented trade. Sri Lanka's most dynamic sectors now are food processing, textiles and apparel, food and beverages, telecommunications, and insurance and banking. In 2003, plantation crops made up only 15% of exports (compared z 93% w 1970), while textiles and garments accounted dla 63%. Produkt krajowy brutto grew at an average annual rate of about 5.5% w the 1990s, but 2001 saw the first contraction w the country's history, by 1.4%, due to a combination of power shortages, severe budgetary problems, the global slowdown, and continuing civil strife. Growth recovered to 5% between 2002 and 2005. About 800,000 Sri Lankans work abroad, 90% w the Middle East. They send home about $1 billion a year. The struggle by the Tamil Tigers of the north and east dla a largely independent homeland continues to cast a shadow over the economy. In late grudzien 2004, a major tsunami took about 31,000 lives, left more than 6,300 missing and 443,000 displaced, and destroyed an estimated $1.5 billion worth of property.
SudanSudan Sudan has turned around a struggling economy z sound economic policies and infrastructure investments, but it still faces formidable economic problems, starting from its low level of per capita output. From 1997 to date, Sudan has been implementing IMF macroeconomic reforms. In 1999, Sudan began exporting crude oil and w the last quarter of 1999 recorded its first trade surplus, which, along z monetary policy, has stabilized the exchange rate. Increased oil production, revived light industry, and expanded export processing zones helped sustain Produkt krajowy brutto growth at 8.6% w 2004. Agricultural production remains Sudan's most important sector, employing 80% of the work force, contributing 39% of Produkt krajowy brutto, and accounting dla most of Produkt krajowy brutto growth, but most farms remain rain-fed and susceptible to drought. Chronic instability - resulting from the long-standing civil war between the Muslim north and the Christian/pagan south, adverse weather, and weak world agricultural prices - ensure that much of the population will remain at or below the poverty line dla years.
SurinamSurinam The economy is dominated by the mining industry, which accounts dla more than a third of Produkt krajowy brutto and subjects government revenues to mineral price volatility. The short-term economic outlook depends on the government's ability to control inflation and on the development of projects w the bauxite and gold mining sectors. Surinam's economic prospects dla the medium term will depend on continued commitment to responsible monetary and fiscal policies and to the introduction of structural reforms to liberalize markets and promote competition. The government of Ronald VENETIAAN, w his first term, implemented an austerity program, raised taxes, and attempted to control spending. Economic policies are likely to remain the same during VENETIAAN's second term. Prospects dla local onshore oil production are good, as a drilling program is underway. Offshore oil drilling was given a boost w 2004 when the State Oil Company (Staatsolie) signed exploration agreements z Repsol, Mearsk, and Occidental.
SvalbardSvalbard Coal mining is the major economic activity on Svalbard. The treaty of 9 luty 1920 gives the 41 signatories equal rights to exploit mineral deposits, subject to Norwegian regulation. Although US, UK, Dutch, and Swedish coal companies have mined w the past, the only companies still mining are Norwegian and Rosjan. The settlements on Svalbard are essentially company towns. The Norwegian state-owned coal company employs nearly 60% of the Norwegian population on the island, runs many of the local services, and provides most of the local infrastructure. There is also some hunting of seal, reindeer, and fox.
SuaziSuazi In this small, landlocked economy, subsistence agriculture occupies more than 80% of the population. The manufacturing sector has diversified since the mid-1980s. Sugar and wood pulp remain important foreign exchange earners. Mining has declined w importance w recent years z only coal and quarry stone mines remaining active. Surrounded by Republika Poludniowej Afryki, except dla a short border z Mozambik, Suazi is heavily dependent on Republika Poludniowej Afryki from which it receives about nine-tenths of its imports and to which it sends nearly two-thirds of its exports. Customs duties from the Southern African Customs Union and worker remittances from Republika Poludniowej Afryki substantially supplement domestically earned income. The government is trying to improve the atmosphere dla foreign investment. Overgrazing, soil depletion, drought, and sometimes floods persist as problems dla the future. More than one-fourth of the population needed emergency food aid w 2004-05 because of drought, and nearly two-fifths of the adult population has been infected by HIV/AIDS.
SzwecjaSzwecja Aided by peace and neutrality dla the whole of the 20th century, Szwecja has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account dla about 90% of industrial output, of which the engineering sector accounts dla 50% of output and exports. Agriculture accounts dla only 2% of Produkt krajowy brutto and of jobs. The government's commitment to fiscal discipline resulted w a substantial budgetary surplus w 2001, which was cut by more than half w 2002, due to the global economic slowdown, declining revenue, and increased spending. The Swedish central bank (the Riksbank) focuses on price stability z its inflation target of 2%. Growth remained sluggish w 2003, but picked up w 2004 and 2005. Presumably because of generous sick-leave benefits, Swedish workers report w sick more often than other Europeans. In wrzesien 2003, Swedish voters turned down entry into the euro system, concerned about the impact on democracy and sovereignty.
SzwajcariaSzwajcaria Szwajcaria is a peaceful, prosperous, and stable modern market economy z low unemployment, a highly skilled labor force, and a per capita Produkt krajowy brutto larger than that of the big Western European economies. The Swiss w recent years have brought their economic practices largely into conformity z the EU's to enhance their international competitiveness. Szwajcaria remains a safehaven dla investors, because it has maintained a degree of bank secrecy and has kept up the franc's long-term external value. Reflecting the anemic economic conditions of Europe, Produkt krajowy brutto growth dropped w 2001 to about 0.8%, to 0.2% w 2002, and to -0.3% w 2003, z a small rise to 1.8% w 2004-05. Even so, unemployment has remained at less than half the EU average.
SyriaSyria The Syrian Government estimates the economy grew by 4.5 percent w real terms w 2005, led by the petroleum and agricultural sectors, which together account dla about half of Produkt krajowy brutto. Economic performance and the exchange rate on the informal market were hit by international political developments following the assassination w luty of former Lebanese Prime Minister Rafiq al-HARIRI and the specter of international sanctions. Higher crude oil prices countered declining oil production and exports and helped to narrow the budget deficit and widen the current account surplus. The Government of Syria has implemented modest economic reforms w the last few years, including cutting interest rates, opening private banks, consolidating some of the multiple exchange rates, and raising prices on some subsidized foodstuffs. Nevertheless, the economy remains highly controlled by the government. Long-run economic constraints include declining oil production and exports, increasing pressure on water supplies caused by rapid population growth, industrial expansion, and water pollution.
TajwanTajwan Tajwan has a dynamic capitalist economy z gradually decreasing guidance of investment and foreign trade by government authorities. In keeping z this trend, some large, government-owned banks and industrial firms are being privatized. Eksport have provided the primary impetus dla industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest. Agriculture contributes less than 2% to Produkt krajowy brutto, down from 32% w 1952. Tajwan is a major investor throughout Southeast Asia. Chiny has overtaken the US to become Tajwan's largest export market and, w 2005, Tajwan's third-largest source of imports after Japonia and the US. Tajwan has benefited from cross-Strait economic integration and a sharp increase w world demand to achieve substantial growth w its export sector and a seven-year-high real Produkt krajowy brutto growth of 6.1% w 2004. However, excess inventory, higher international oil prices, and rising interest rates dampened consumption w developed markets, and Produkt krajowy brutto growth dropped to 3.8% w 2005. The service sector, which accounts dla 69% of Tajwan's Produkt krajowy brutto, has continued to expand, while unemployment and inflation rates have declined.
TadzykistanTadzykistan Tadzykistan has one of the lowest per capita Produkt krajowy bruttos among the 15 former Soviet republics. Only 6% of the land area is arable; cotton is the most important crop. Mineral resources, varied but limited w amount, include silver, gold, uranium, and tungsten. Industry consists only of a large aluminum plant, hydropower facilities, and small obsolete factories mostly w light industry and food processing. The civil war (1992-97) severely damaged the already weak economic infrastructure and caused a sharp decline w industrial and agricultural production. Even though 64% of its people continue to live w abject poverty, Tadzykistan has experienced steady economic growth since 1997, but experienced a slight drop w its growth rate to 8% w 2005 from 10.6% w 2004. Continued privatization of medium and large state-owned enterprises would further increase productivity. Tadzykistan's economic situation, however, remains fragile due to uneven implementation of structural reforms, weak governance, widespread unemployment, and the external debt burden. A debt restructuring agreement was reached z Rosja w grudzien 2002, including a $250 million write-off of Tadzykistan's $300 million debt to Rosja. Tadzykistan ranks third w the world w terms of water resources per head. A proposed investment to finish the hydropower dams Rogun and Sangtuda would substantially add to electricity production. If finished, Rogun will be the world's tallest dam.
TanzaniaTanzania Tanzania is one of the poorest countries w the world. The economy depends heavily on agriculture, which accounts dla almost half of Produkt krajowy brutto, provides 85% of exports, and employs 80% of the work force. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area. Industry traditionally featured the processing of agricultural products and light consumer goods. The Swiat Bank, the International Monetary Fund, and bilateral donors have provided funds to rehabilitate Tanzania's out-of-date economic infrastructure and to alleviate poverty. Long-term growth through 2005 featured a pickup w industrial production and a substantial increase w output of minerals, led by gold. Recent banking reforms have helped increase private-sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real Produkt krajowy brutto growth of more than 6% w 2005.
TajlandiaTajlandia With a well-developed infrastructure, a free-enterprise economy, and pro-investment policies, Tajlandia appears to have fully recovered from the 1997-98 Asian Financial Crisis. The country was one of East Asia's best performers w 2002-04. Boosted by increased consumption and strong export growth, the Thai economy grew 6.9% w 2003 and 6.1% w 2004 despite a sluggish global economy. Bangkok has pursued preferential trade agreements z a variety of partners w an effort to boost exports and to maintain high growth. In 2004, Tajlandia and the US began negotiations on a Free Trade Agreement. In late grudzien 2004, a major tsunami took 8,500 lives w Tajlandia and caused massive destruction of property w the southern provinces of Krabi, Phangnga, and Phuket. Growth slowed to 4.4% w 2005. The downturn can be attributed to high oil prices, weaker demand from Western markets, severe drought w rural regions, tsunami-related declines w tourism, and lower consumer confidence. Moreover, the THAKSIN administration's expansionist economic policies, including plans dla multi-billion-dollar mega-projects w infrastructure and social development, has raised concerns about fiscal discipline and the health of financial institutions. On the positive side, the Thai economy performed well beginning w the third quarter of 2005. Export-oriented manufacturing - w particular automobile production - and farm output are driving these gains. In 2006, the economy should benefit from an influx of investment and a revived tourism sector; however, a possible avian flu epidemic could significantly harm economic prospects throughout the region.
TogoTogo This small, sub-Saharan economy is heavily dependent on both commercial and subsistence agriculture, which provides employment dla 65% of the labor force. Some basic foodstuffs must still be imported. Cocoa, coffee, and cotton generate about 40% of export earnings, z cotton being the most important cash crop. Togo is the world's fourth-largest producer of phosphate. The government's decade-long effort, supported by the Swiat Bank and the IMF, to implement economic reform measures, encourage foreign investment, and bring revenues w line z expenditures has moved slowly. Progress depends on follow-through on privatization, increased openness w government financial operations, progress toward legislative elections, and continued support from foreign donors. Togo is working z donors to write a PRGF that could eventually lead to a debt reduction plan.
TokelauTokelau Tokelau's small size (three villages), isolation, and lack of resources greatly restrain economic development and confine agriculture to the subsistence level. The people rely heavily on aid from Nowa Zelandia - about $4 million annually - to maintain public services, z annual aid being substantially greater than Produkt krajowy brutto. The principal sources of revenue come from sales of copra, postage stamps, souvenir coins, and handicrafts. Money is also remitted to families from relatives w Nowa Zelandia.
TongaTonga Tonga, a small, open, South Pacific island economy, has a narrow export base w agricultural goods. Squash, coconuts, bananas, and vanilla beans are the main crops, and agricultural exports make up two-thirds of total exports. The country must import a high proportion of its food, mainly from Nowa Zelandia. The country remains dependent on external aid and remittances from Tongan communities overseas to offset its trade deficit. Tourism is the second-largest source of hard currency earnings following remittances. The government is emphasizing the development of the private sector, especially the encouragement of investment, and is committing increased funds dla health and education. Tonga has a reasonably sound basic infrastructure and well-developed social services. High unemployment among the young, a continuing upturn w inflation, pressures dla democratic reform, and rising civil service expenditures are major issues facing the government.
Trynidad i TobagoTrynidad i Tobago Trynidad i Tobago, the leading Caribbean producer of oil and gas, has earned a reputation as an excellent investment site dla international businesses. Tourism is a growing sector, although not proportionately as important as w many other Caribbean islands. The economy benefits from low inflation and a growing trade surplus. Prospects dla growth w 2006 are good as prices dla oil, petrochemicals, and liquefied natural gas are expected to remain high, and foreign direct investment continues to grow to support expanded capacity w the energy sector. The government is coping z a rise w violent crime.
Wyspa TromelinWyspa Tromelin no economic activity
TunezjaTunezja Tunezja has a diverse economy, z important agricultural, mining, energy, tourism, and manufacturing sectors. Governmental control of economic affairs while still heavy has gradually lessened over the past decade z increasing privatization, simplification of the tax structure, and a prudent approach to debt. Progressive social policies also have helped raise living conditions w Tunezja relative to the region. Real growth slowed to a 15-year low of 1.9% w 2002 because of agricultural drought and lackluster tourism. Better rains w 2003 through 2005, however, helped push Produkt krajowy brutto growth to about 5% dla these years. Tourism also recovered after the end of combat operations w Irak. Tunezja is gradually removing barriers to trade z the EU. Broader privatization, further liberalization of the investment code to increase foreign investment, improvements w government efficiency, and reduction of the trade deficit are among the challenges ahead.
TurcjaTurcja Turcja's dynamic economy is a complex mix of modern industry and commerce along z a traditional agriculture sector that still accounts dla more than 35% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role w basic industry, banking, transport, and communication. The largest industrial sector is textiles and clothing, which accounts dla one-third of industrial employment; it faces stiff competition w international markets z the end of the global quota system. However, other sectors, notably the automotive and electronics industries, are rising w importance within Turcja's export mix. Real GNP growth has exceeded 6% w many years, but this strong expansion has been interrupted by sharp declines w output w 1994, 1999, and 2001. The economy is turning around z the implementation of economic reforms, and 2004 Produkt krajowy brutto growth reached 9%. Inflation fell to 7.7% w 2005 - a 30-year low. Despite the strong economic gains w 2002-05, which were largely due to renewed investor interest w emerging markets, IMF backing, and tighter fiscal policy, the economy is still burdened by a high current account deficit and high debt. The public sector fiscal deficit exceeds 6% of Produkt krajowy brutto - due w large part to high interest payments, which accounted dla about 37% of central government spending w 2004. Prior to 2005, foreign direct investment (FDI) w Turcja averaged less than $1 billion annually, but further economic and judicial reforms and prospective EU membership are expected to boost FDI. Privatization sales are currently approaching $21 billion.
TurkmenistanTurkmenistan Turkmenistan is a largely desert country z intensive agriculture w irrigated oases and large gas and oil resources. One-half of its irrigated land is planted w cotton; formerly it was the world's tenth-largest producer. Poor harvests w recent years have led to an almost 50% decline w cotton exports. With an authoritarian ex-Communist regime w power and a tribally based social structure, Turkmenistan has taken a cautious approach to economic reform, hoping to use gas and cotton sales to sustain its inefficient economy. Privatization goals remain limited. In 1998-2005, Turkmenistan suffered from the continued lack of adequate export routes dla natural gas and from obligations on extensive short-term external debt. At the same time, however, total exports rose by 20% to 30% per year w 2003-2005, largely because of higher international oil and gas prices. In 2005, Ashgabat sought to raise natural gas export prices to its main customers, Rosja and Ukraina, from $44 per thousand cubic meters (tcm) to $66 per tcm. Overall prospects w the near future are discouraging because of widespread internal poverty, the burden of foreign debt, the government's irrational use of oil and gas revenues, and its unwillingness to adopt market-oriented reforms. Turkmenistan's economic statistics are state secrets, and Produkt krajowy brutto and other figures are subject to wide margins of error. In particular, the rate of Produkt krajowy brutto growth is uncertain.
Turks i CaicosTurks i Caicos The Turks and Caicos economy is based on tourism, fishing, and offshore financial services. Most capital goods and food dla domestic consumption are imported. The US is the leading source of tourists, accounting dla more than half of the annual 93,000 visitors w the late 1990s. Major sources of government revenue also include fees from offshore financial activities and customs receipts.
TuvaluTuvalu Tuvalu consists of a densely populated, scattered group of nine coral atolls z poor soil. The country has no known mineral resources and few exports. Subsistence farming and fishing are the primary economic activities. Fewer than 1,000 tourists, on average, visit Tuvalu annually. Government revenues largely come from the sale of stamps and coins and remittances from seamen on merchant ships abroad. About 1,000 Tuvaluans are being repatriated from Nauru, z the decline of phosphate resources there. Substantial income is received annually from an international trust fund established w 1987 by Australia, NZ, and the UK and supported also by Japonia and South Korea. Thanks to wise investments and conservative withdrawals, this fund has grown from an initial $17 million to over $35 million w 1999. The US Government is also a major revenue source dla Tuvalu because of payments from a 1988 treaty on fisheries. In an effort to reduce its dependence on foreign aid, the government is pursuing public sector reforms, including privatization of some government functions and personnel cuts of up to 7%. Tuvalu derives around $1.5 million per year from the lease of its ".tv" Internet domain name. With merchandise exports only a fraction of merchandise imports, continued reliance must be placed on fishing and telecommunications license fees, remittances from overseas workers, official transfers, and income from overseas investments.
UgandaUganda Uganda has substantial natural resources, including fertile soils, regular rainfall, and sizable mineral deposits of copper and cobalt. Agriculture is the most important sector of the economy, employing over 80% of the work force. Coffee accounts dla the bulk of export revenues. Since 1986, the government - z the support of foreign countries and international agencies - has acted to rehabilitate and stabilize the economy by undertaking currency reform, raising producer prices on export crops, increasing prices of petroleum products, and improving civil service wages. The policy changes are especially aimed at dampening inflation and boosting production and export earnings. During 1990-2001, the economy turned w a solid performance based on continued investment w the rehabilitation of infrastructure, improved incentives dla production and exports, reduced inflation, gradually improved domestic security, and the return of exiled Indien-Ugandan entrepreneurs. In 2000, Uganda qualified dla enhanced Highly Indebted Poor Countries (HIPC) debt relief worth $1.3 billion and Paris Club debt relief worth $145 million. These amounts combined z the original HIPC debt relief added up to about $2 billion. Growth dla 2001-02 was solid despite continued decline w the price of coffee, Uganda's principal export. Growth w 2003-05 reflected an upturn w Uganda's export markets.
UkrainaUkraina After Rosja, the Ukrainian republic was far and away the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied the unique equipment (for example, large diameter pipes) and raw materials to industrial and mining sites (vertical drilling apparatus) w other regions of the former USSR. Ukraina depends on imports of energy, especially natural gas, to meet some 85% of its annual energy requirements. Shortly after independence was ratified w grudzien 1991, the Ukrainian Government liberalized most prices and erected a legal framework dla privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output by 1999 had fallen to less than 40% of the 1991 level. Loose monetary policies pushed inflation to hyperinflationary levels w late 1993. Ukraina's dependence on Rosja dla energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. A dispute z Rosja over pricing led to a temporary gas cut-off; Ukraina concluded a deal z Rosja w styczen 2006, which almost doubled the price Ukraina pays dla Rosjan gas, and could cost the Ukrainian economy $1.4-2.2 billion and cause Produkt krajowy brutto growth to fall 3-4%. Ukrainian government officials eliminated most tax and customs privileges w a marzec 2005 budget law, bringing more economic activity out of Ukraina's large shadow economy, but more improvements are needed, including fighting corruption, developing capital markets, and improving the legislative framework dla businesses. Reforms w the more politically sensitive areas of structural reform and land privatization are still lagging. Outside institutions - particularly the IMF - have encouraged Ukraina to quicken the pace and scope of reforms. Produkt krajowy brutto growth was 2.4% w 2005, down from 12.4% w 2004. The current account surplus reached $2.2 billion w 2005. The privatization of the Kryvoryzhstal steelworks w late 2005 produced $4.8 billion w windfall revenue dla the government. Some of the proceeds were used to finance the budget deficit, some to recapitalize two state banks, some to retire public debt, and the rest may be used to finance future deficits.
Zjednoczone Emiraty ArabskieZjednoczone Emiraty Arabskie The UAE has an open economy z a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 30% of Produkt krajowy brutto), and the fortunes of the economy fluctuate z the prices of those commodities. Since the discovery of oil w the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state z a high standard of living. At present levels of production, oil and gas reserves should last dla more than 100 years. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private sector involvement. Higher oil revenue, strong liquidity, and cheap credit w 2005 led to a surge w asset prices (shares and real estate) and consumer inflation. Any sharp correction to the UAE's equity markets could damage investor and consumer sentiment and affect bank asset quality. In kwiecien 2004, the UAE signed a Trade and Investment Framework Agreement (TIFA) z Washington and w listopad 2004 agreed to undertake negotiations toward a Free Trade Agreement (FTA) z the US.
Wielka BrytaniaWielka Brytania The UK, a leading trading power and financial center, is one of the quintet of trillion dollar economies of Western Europe. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs z less than 2% of the labor force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts dla 10% of Produkt krajowy brutto, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far dla the largest proportion of Produkt krajowy brutto while industry continues to decline w importance. Produkt krajowy brutto growth slipped w 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Output recovered w 2004, to 3.2% growth, but fell w 2005, to 1.7%. Despite slower growth, the economy is one of the strongest w Europe; inflation, interest rates, and unemployment remain low. The relatively good economic performance has complicated the BLAIR government's efforts to make a case dla Britain to join the European Economic and Monetary Union (EMU). Critics point out that the economy is doing well outside of EMU, and public opinion polls show a majority of Britons are opposed to the euro. Meantime, the government has been speeding up the improvement of education, transport, and health services, at a cost w higher taxes and a widening public deficit.
Stany ZjednoczoneStany Zjednoczone The US has the largest and most technologically powerful economy w the world, z a per capita Produkt krajowy brutto of $42,000. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly w the private marketplace. US business firms enjoy greater flexibility than their counterparts w Western Europe and Japonia w decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront w technological advances, especially w computers and w medical, aerospace, and military equipment; their advantage has narrowed since the end of Swiat War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" w which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains w household income have gone to the top 20% of households. The response to the terrorist attacks of 11 wrzesien 2001 showed the remarkable resilience of the economy. The war w marzec-kwiecien 2003 between a US-led coalition and Irak, and the subsequent occupation of Irak, required major shifts w national resources to the military. The rise w Produkt krajowy brutto w 2004 and 2005 was undergirded by substantial gains w labor productivity. Hurricane Katrina caused extensive damage w the Gulf Coast region w sierpien 2005, but had a small impact on overall Produkt krajowy brutto growth dla the year. Soaring oil prices w 2005 and 2006 threatened inflation and unemployment, yet the economy continued to grow through mid-2006. Imported oil accounts dla about two-thirds of US consumption. Long-term problems include inadequate investment w economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income w the lower economic groups.
Stany Zjednoczone Pacific Island Wildlife RefugesStany Zjednoczone Pacific Island Wildlife Refuges no economic activity
UrugwajUrugwaj Urugwaj's well-to-do economy is characterized by an export-oriented agricultural sector, a well-educated work force, and high levels of social spending. After averaging growth of 5% annually during 1996-98, w 1999-2002 the economy suffered a major downturn, stemming largely from the spillover effects of the economic problems of its large neighbors, Argentyna and Brazylia. For instance, w 2001-02 Argentyna made massive withdrawals of dollars deposited w Urugwajan banks, which led to a plunge w the Urugwajan peso and a massive rise w unemployment. Total Produkt krajowy brutto w these four years dropped by nearly 20%, z 2002 the worst year due to the banking crisis. The unemployment rate rose to nearly 20% w 2002, inflation surged, and the burden of external debt doubled. Cooperation z the IMF helped stem the damage. A debt swap z private-sector creditors w 2003 extended the maturity dates on nearly half of Urugwaj's then $11.3 billion of public debt and helped restore public confidence. The economy grew about 10% w 2004 as a result of high commodity prices dla Urugwajan exports, a competitive peso, growth w the region, and low international interest rates, but slowed to 6.1% w 2005.
UzbekistanUzbekistan Uzbekistan is a dry, landlocked country of which 11% consists of intensely cultivated, irrigated river valleys. More than 60% of its population lives w densely populated rural communities. Uzbekistan is now the world's second-largest cotton exporter and fifth largest producer; it relies heavily on cotton production as the major source of export earnings. Other major export earners include gold, natural gas, and oil. Following independence w wrzesien 1991, the government sought to prop up its Soviet-style command economy z subsidies and tight controls on production and prices. While aware of the need to improve the investment climate, the government still sponsors measures that often increase, not decrease, its control over business decisions. A sharp increase w the inequality of income distribution has hurt the lower ranks of society since independence. In 2003, the government accepted the obligations of Article VIII under the International Monetary Fund (IMF), providing dla full currency convertibility. However, strict currency controls and tightening of borders have lessened the effects of convertibility and have also led to some shortages that have further stifled economic activity. The Central Bank often delays or restricts convertibility, especially dla consumer goods. Potential investment by Rosja and Chiny w Uzbekistan's gas and oil industry would increase economic growth prospects. In listopad 2005, Rosjan President Vladimir PUTIN and Uzbekistan President KARIMOV signed an "alliance" treaty, which included provisions dla economic and business cooperation. Rosjan businesses have shown increased interest w Uzbekistan, especially w mining, telecom, and oil and gas. In grudzien 2005, the Rosjans opened a "Trade House" to support and develop Rosjan-Uzbek business and economic ties.
VanuatuVanuatu This South Pacific island economy is based primarily on small-scale agriculture, which provides a living dla 65% of the population. Fishing, offshore financial services, and tourism, z about 50,000 visitors w 2004, are other mainstays of the economy. Mineral deposits are negligible; the country has no known petroleum deposits. A small light industry sector caters to the local market. Tax revenues come mainly from import duties. Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters, and long distances from main markets and between constituent islands. Produkt krajowy brutto growth rose less than 3% on average w the 1990s. In response to foreign concerns, the government has promised to tighten regulation of its offshore financial center. In mid-2002 the government stepped up efforts to boost tourism. Agriculture, especially livestock farming, is a second target dla growth. Australia and Nowa Zelandia are the main suppliers of tourists and foreign aid.
WenezuelaWenezuela Wenezuela continues to be highly dependent on the petroleum sector, accounting dla roughly one-third of Produkt krajowy brutto, around 80% of export earnings, and over half of government operating revenues. Government revenue also has been bolstered by increased tax collection, which has surpassed its 2005 collection goal by almost 50%. Tax revenue is the primary source of non-oil revenue, which accounts dla 53% of the 2006 budget. A disastrous two-month national oil strike, from grudzien 2002 to luty 2003, temporarily halted economic activity. The economy remained w depression w 2003, declining by 9.2% after an 8.9% fall w 2002. Output recovered strongly w 2004-2005, aided by high oil prices and strong consumption growth. Wenezuela continues to be an important source of crude oil dla the US market. Both inflation and unemployment remain fundamental problems.
WietnamWietnam Wietnam is a densely-populated, developing country that w the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. Substantial progress was achieved from 1986 to 1997 w moving forward from an extremely low level of development and significantly reducing poverty. Growth averaged around 9% per year from 1993 to 1997. The 1997 Asian financial crisis highlighted the problems w the Wietnamese economy and temporarily allowed opponents of reform to slow progress toward a market-oriented economy. Produkt krajowy brutto growth averaged 6.8% per year from 1997 to 2004 even against the background of the Asian financial crisis and a global recession, and growth hit 8% w 2005. Since 2001, however, Wietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. Wietnam's membership w the ASEAN Free Trade Terytorium (AFTA) and entry into force of the US-Wietnam Bilateral Trade Agreement w grudzien 2001 have led to even more rapid changes w Wietnam's trade and economic regime. Wietnam's exports to the US doubled w 2002 and again w 2003. Wietnam hopes to become a member of the WTO w 2006. Among other benefits, accession would allow Wietnam to take advantage of the phase out of the Agreement on Textiles and Clothing, which eliminated quotas on textiles and clothing dla WTO partners on 1 styczen 2005. Agriculture's share of economic output has continued to shrink, from about 25% w 2000 to 21% w 2005. Deep poverty, defined as a percent of the population living under $1 per day, has declined significantly and is now smaller than that of Chiny, Indie, and the Filipiny. Wietnam is working to promote job creation to keep up z the country's high population growth rate. However, high levels of inflation have prompted Wietnamese authorities to tighten monetary and fiscal policies.
Wyspy DziewiczeWyspy Dziewicze Tourism is the primary economic activity, accounting dla 80% of Produkt krajowy brutto and employment. The islands normally host 2 million visitors a year. The manufacturing sector consists of petroleum refining, textiles, electronics, pharmaceuticals, and watch assembly. The agricultural sector is small, z most food being imported. International business and financial services are small but growing components of the economy. One of the world's largest petroleum refineries is at Saint Croix. The islands are subject to substantial damage from storms. The government is working to improve fiscal discipline, to support construction projects w the private sector, to expand tourist facilities, to reduce crime, and to protect the environment.
WakeWake Economic activity is limited to providing services to military personnel and contractors located on the island. All food and manufactured goods must be imported.
Wallis i FutunaWallis i Futuna The economy is limited to traditional subsistence agriculture, z about 80% labor force earnings from agriculture (coconuts and vegetables), livestock (mostly pigs), and fishing. About 4% of the population is employed w government. Revenues come from French Government subsidies, licensing of fishing rights to Japonia and South Korea, import taxes, and remittances from expatriate workers w Nowa Kaledonia.
Zachodni BrzegZachodni Brzeg The Zachodni Brzeg - the larger of the two areas under the Palestinian Authority (PA)- has experienced a general decline w economic growth and a degradation w economic conditions made worse since the second intifadah began w wrzesien 2000. The downturn has been largely the result of the Izraeli closure policies - the imposition of border closures w response to security incidents w Izrael - which disrupted labor and commodity market relationships. In 2001, and even more severely w 2002, Izraeli military measures w PA areas resulted w the destruction of much capital plant, the disruption of administrative structure, and widespread business closures. Including the Gaza, the UN estimates that more than 100,000 Palestinians out of the 125,000 who used to work w Izraeli settlements, or w joint industrial zones, have lost their jobs. International aid of $2 billion to the Zachodni Brzeg and Gaza w 2004 prevented the complete collapse of the economy and allowed some reforms w the government's financial operations. In 2005, high unemployment and limited trade opportunities, due to continued closures both within the Zachodni Brzeg and externally, stymied growth.
Sahara ZachodniaSahara Zachodnia Sahara Zachodnia depends on pastoral nomadism, fishing, and phosphate mining as the principal sources of income dla the population. The territory lacks sufficient rainfall dla sustainable agricultural production, and most of the food dla the urban population must be imported. All trade and other economic activities are controlled by the Moroccan Government. Moroccan energy interests w 2001 signed contracts to explore dla oil off the coast of Sahara Zachodnia, which has angered the Polisario. Incomes and standards of living w Sahara Zachodnia are substantially below the Moroccan level.
SwiatSwiat Global output rose by 4.4% w 2005, led by Chiny (9.3%), Indie (7.6%), and Rosja (5.9%). The other 14 successor nations of the USSR and the other old Warsaw Pact nations again experienced widely divergent growth rates; the three Baltic nations continued as strong performers, w the 7% range of growth. Growth results posted by the major industrial countries varied from no gain dla Wlochy to a strong gain by the Stany Zjednoczone (3.5%). The developing nations also varied w their growth results, z many countries facing population increases that erode gains w output. Externally, the nation-state, as a bedrock economic-political institution, is steadily losing control over international flows of people, goods, funds, and technology. Internally, the central government often finds its control over resources slipping as separatist regional movements - typically based on ethnicity - gain momentum, e.g., w many of the successor states of the former Soviet Union, w the former Jugoslawia, w Indie, w Irak, w Indonezja, and w Kanada. Externally, the central government is losing decisionmaking powers to international bodies, notably the EU. In Western Europe, governments face the difficult political problem of channeling resources away from welfare programs w order to increase investment and strengthen incentives to seek employment. The addition of 80 million people each year to an already overcrowded globe is exacerbating the problems of pollution, desertification, underemployment, epidemics, and famine. Because of their own internal problems and priorities, the industrialized countries devote insufficient resources to deal effectively z the poorer areas of the world, which, at least from an economic point of view, are becoming further marginalized. The introduction of the euro as the common currency of much of Western Europe w styczen 1999, while paving the way dla an integrated economic powerhouse, poses economic risks because of varying levels of income and cultural and political differences among the participating nations. The terrorist attacks on the US on 11 wrzesien 2001 accentuated a further growing risk to global prosperity, illustrated, dla example, by the reallocation of resources away from investment to anti-terrorist programs. The opening of war w marzec 2003 between a US-led coalition and Irak added new uncertainties to global economic prospects. After the coalition victory, the complex political difficulties and the high economic cost of establishing domestic order w Irak became major global problems that continued into 2006.
JemenJemen Jemen, one of the poorest countries w the Arab world, has reported meager growth since 2000. Its economic fortunes depend mostly on oil. Oil revenues increased w 2005 due to higher prices. Jemen was on an IMF-supported structural adjustment program designed to modernize and streamline the economy, which led to substantial foreign debt relief and restructuring. However, government dedication to the program waned w 2001 dla political reasons. Jemen is struggling to control excessive spending and rampant corruption. The people have grown increasingly upset over the economic situation. In lipiec 2005, a reduction w fuel subsidies sparked riots; over 20 Jemenis were killed and hundreds were injured.
ZambiaZambia Despite progress w privatization and budgetary reform, Zambia's economic growth remains somewhat below the 6%-7% needed to reduce poverty significantly. Privatization of government-owned copper mines relieved the government from covering mammoth losses generated by the industry and greatly improved the chances dla copper mining to return to profitability and spur economic growth. Copper output has increased steadily since 2004, due to higher copper prices and the opening of new mines. The maize harvest was again good w 2005, helping boost Produkt krajowy brutto and agricultural exports. Cooperation continues z international bodies on programs to reduce poverty, including a new lending arrangement z the IMF w the second quarter of 2004. A tighter monetary policy will help cut inflation, but Zambia still has a serious problem z high public debt.
ZimbabweZimbabwe The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles z an unsustainable fiscal deficit, an overvalued exchange rate, soaring inflation, and bare shelves. Its 1998-2002 involvement w the war w the Democratic Republic of the Congo, dla example, drained hundreds of millions of dollars from the economy. Badly needed support from the IMF has been suspended because of the government's arrears on past loans, which it began repaying w 2005. The official annual inflation rate rose from 32% w 1998, to 133% at the end of 2004, and 585% at the end of 2005, although private sector estimates put the figure much higher. Meanwhile, the official exchange rate fell from 24 Zimbabwean dollars per US dollar w 1998 to 96,000 w mid-styczen 2006. The government's land reform program, characterized by chaos and violence, has badly damaged the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400,000 jobs, turning Zimbabwe into a net importer of food products.
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