United States. Central Intelligence Agency

“ Plantation crops - rubber and palm oil - and
textiles and plywood are being encouraged for both export and job
generation. Industrial output now accounts for 30% of GDP and is based on a
supply of diverse natural resources, including crude oil, natural gas,
timber, metals, and coal. Of these, the oil sector dominates the external
economy, generating more than 20% of the government's revenues and 40% of
export earnings in 1989. However, the economy's growth is highly dependent
on the continuing expansion of nonoil exports. ”

“ Up to the invasion by Iraq in August 1990, the oil sector had dominated the
economy. Kuwait has the third-largest oil reserves in the world after Saudi
Arabia and Iraq. Earnings from hydrocarbons have generated over 90% of both
export and government revenues and contributed about 40% to GDP. Most of the
nonoil sector has traditionally been dependent upon oil-derived government
revenues. Iraq's destruction of Kuwait's oil industry during the Gulf war
has devastated the economy. ”

“ The driving force behind the
rapid economic growth of the 1970s and 1980s has been the mining industry.
This sector, mostly on the strength of diamonds, has gone from generating
25% of GDP in 1980 to over 50% in 1989. No other sector has experienced such
growth, especially not agriculture, which is plagued by erratic rainfall and
poor soils. The unemployment rate remains a problem at 25%. Although diamond
production remained level in FY91, substantial gains in coal output and
manufacturing helped boost the economy
GDP:
purchasing power equivalent - $3.6 billion, per capita $2,800 ”

“ Hungary is in the midst of a difficult transition between a command and a
market economy. Agriculture is an important sector, providing sizable export
earnings and meeting domestic food needs. Industry accounts for about 40% of
GDP and 30% of employment. Hungary claims that less than 20% of foreign
trade is now with former CEMA countries, while about 70% is with OECD
members. Hungary's economic reform programs during the Communist era gave it
a head start in creating a market economy and attracting foreign investment. ”

“ Among the former Soviet republics, Georgia is noted for its Black Sea
tourist industry, its large output of citrus fruits and tea, and the amazing
diversity of an industrial sector that accounted, however, for less than 2%
of the USSR's output. Another salient characteristic of the economy has been
a flourishing private sector (compared with the other republics) . Almost 30%
of the labor force is employed in agriculture and 18% in industry. Mineral
resources consist of manganese and copper, and, to a lesser extent,
molybdenum, arsenic, tungsten, and mercury. ”

“ Kenya's 3.6% annual population growth rate - one of the highest in the world
- presents a serious problem for the country's economy. In the meantime, GDP
growth in the near term has kept slightly ahead of population - annually
averaging 4.9% in the 1986-90 period. Undependable weather conditions and a
shortage of arable land hamper long-term growth in agriculture, the leading
economic sector. In 1991, deficient rainfall, stagnant export volume, and
sagging export prices held economic growth below the all-important
population growth figure. ”

“ The most gratifying
result has been a strong spurt in production, particularly in agriculture in
the early 1980s. Industry also has posted major gains, especially in coastal
areas near Hong Kong and opposite Taiwan, where foreign investment and
modern production methods have helped spur production of both domestic and
export goods. Aggregate output has more than doubled since 1978. On the
darker side, the leadership has often experienced in its hybrid system the
worst results of socialism (bureaucracy, lassitude, corruption) and of
capitalism (windfall gains and stepped-up inflation) . ”

“ Finland has a highly industrialized, largely free market economy, with per
capita output nearly three-fourths the US figure. Its main economic force is
the manufacturing sector - principally the wood, metals, and engineering
industries. Trade is important, with the export of goods representing about
30% of GDP. Except for timber and several minerals, Finland depends on
imported raw materials, energy, and some components of manufactured goods.
Because of the climate, agricultural development is limited to maintaining
self-sufficiency in basic commodities. ”

“ Basic
problems facing the economy include rapid population growth, high
unemployment, sharply increased inflation, a lack of basic services, a large
and inefficient public sector, and the dependence of the export sector
mostly on coffee and bananas, which are subject to sharp price fluctuations.
Despite government efforts at reform and large-scale foreign assistance, the
economy still is unable to take advantage of its sizable natural resources.
GDP:
exchange rate conversion - $5.2 billion, per capita $1,050; real growth rate
- 0.3% (1991 est.) ”

“ The recession - which is
expected to bottom out in late 1992 - has been caused by economic
overheating, depressed foreign markets, and the dismantling of the barter
system between Finland and the former Soviet Union in which Soviet oil and
gas had been exchanged for Finnish manufactured goods. The Finnish
Government has proposed efforts to increase industrial competitiveness and
efficiency by an increase in exports to Western markets, cuts in public
expenditures, partial privatization of state enterprises, and foreign
investment and exchange liberalization. ”

“ The economy, with large agrarian, mining, and manufacturing sectors, entered
the 1990s with declining real growth, runaway inflation, an unserviceable
foreign debt of $122 billion, and a lack of policy direction. In addition,
the economy remained highly regulated, inward-looking, and protected by
substantial trade and investment barriers. Ownership of major industrial and
mining facilities is divided among private interests - including several
multinationals - and the government. Most large agricultural holdings are
private, with the government channeling financing to this sector. ”

“ In the absence of
other natural resources, Iceland's economy is vulnerable to changing world
fish prices. The economic improvements resulting from climbing fish prices
in 1990 and a noninflationary labor agreement probably will be reversed by
tighter fish quotas and a delay in the construction of an aluminum smelting
plant. The conservative government's economic priorities include reducing
the budget and current account deficits, containing inflation, revising
agricultural and fishing policies, diversifying the economy, and tying the
krona to the EC's European currency unit in 1993. ”

“ The economy, destroyed during the regime of former President Macias NGUEMA,
is now based on agriculture, forestry, and fishing, which account for about
half of GDP and nearly all exports. Subsistence agriculture predominates,
with cocoa, coffee, and wood products providing income, foreign exchange,
and government revenues. There is little industry. Commerce accounts for
about 8% of GDP and the construction, public works, and service sectors for
about 38%. Undeveloped natural resources include titanium, iron ore,
manganese, uranium, and alluvial gold. ”

“ The economy, dependent on timber and manganese until the early 1970s, is now
dominated by the oil sector. During the period 1981-85, oil accounted for
about 46% of GDP, 83% of export earnings, and 65% of government revenues on
average. The high oil prices of the early 1980s contributed to a substantial
increase in per capita income, stimulated domestic demand, reinforced
migration from rural to urban areas, and raised the level of real wages to
among the highest in Sub-Saharan Africa. ”

“ Mexico's economy is a mixture of state-owned industrial plants (notably
oil) , private manufacturing and services, and both large-scale and
traditional agriculture. In the 1980s, Mexico experienced severe economic
difficulties: the nation accumulated large external debts as world petroleum
prices fell; rapid population growth outstripped the domestic food supply;
and inflation, unemployment, and pressures to emigrate became more acute. ”

“ Output of the extractive industries includes coal,
iron ore, magnesite, graphite, copper, zinc, lead, and precious metals.
Manufacturing is centered on heavy industry, with light industry lagging far
behind. Despite the use of improved seed varieties, expansion of irrigation,
and the heavy use of fertilizers, North Korea has not yet become
self-sufficient in food production. Four consecutive years of poor harvests,
coupled with distribution problems, have led to chronic food shortages.
North Korea remains far behind South Korea in economic development and
living standards. ”

“ This modern economy features high-tech agriculture, up-to-date small-scale
and corporate industry, extensive government welfare measures, comfortable
living standards, and high dependence on foreign trade. Denmark probably
will continue its successful economic recovery in 1992 with tight fiscal and
monetary policies and export- oriented growth. Prime Minister Schluter's
main priorities are to maintain a current account surplus in order to pay
off extensive external debt and to continue to freeze public-sector
expenditures in order to reduce the budget deficit. ”

“ The region's economy is mature: services and manufacturing account
for the dominant share of economic activity, and raw materials and
semimanufactured goods constitute a large portion of imports. In recent
years, manufacturing has accounted for about 31% of GDP, with other sectors
contributing lesser amounts. Gross fixed investment in 1990 accounted for
about 21% of GDP. In 1991, GDP in the western region was an estimated
$19,200 per capita. In contrast, eastern Germany's economy is shedding the
obsolete heavy industries that dominated the economy during the Communist
era. ”

“ Overregulation holds back technical modernization and foreign investment.
Even so, the economy grew rapidly during the late 1970s and early 1980s, but
in 1986 the collapse of world oil prices and an increasingly heavy burden of
debt servicing led Egypt to begin negotiations with the IMF for
balance-of-payments support. As part of the 1987 agreement with the IMF, the
government agreed to institute a reform program to reduce inflation, promote
economic growth, and improve its external position. ”

“ Mongolia's severe climate, scattered population, and wide expanses of
unproductive land have constrained economic development. Economic activity
traditionally has been based on agriculture and the breeding of livestock -
Mongolia has the highest number of livestock per person in the world. In
recent years extensive mineral resources have been developed with Soviet
support. The mining and processing of coal, copper, molybdenum, tin,
tungsten, and gold account for a large part of industrial production. Timber
and fishing are also important sectors. ”

“ The economy had recovered moderately in 1990 because of: the resolution of a
trade dispute with India over phosphoric acid sales, a rebound in textile
sales to the EC, lower prices for food imports, a sharp increase in worker
remittances, increased Arab donor aid, and generous debt rescheduling
agreements. Economic performance in 1991 was mixed. A record harvest helped
real GDP advance by 4.2%, although nonagricultural output grew by less than
1%. Inflation accelerated slightly as easier financial policies triggered
rapid credit and monetary growth. ”

“ NA
:Armenia Economy
Overview:
Armenia under the old centrally planned Soviet system had built up textile,
machine-building, and other industries and had become a key supplier to
sister republics. In turn, Armenia had depended on supplies of raw materials
and energy from the other republics. Most of these supplies enter the
republic by rail through Azerbaijan (85%) and Georgia (15%) . The economy has
been severely hurt by ethnic strife with Azerbaijan over control of the
Nagorno-Karabakh Autonomous Oblast, a mostly Armenian-populated enclave
within the national boundaries of Azerbaijan. ”

“ Eastern Europe and Russia, Latvia, Estonia, and Belarus. Industry produces a
small assortment of high-quality products, ranging from complex machine
tools to sophisticated consumer electronics. Thanks to nuclear power,
Lithuania is presently self-sufficient in electricity, exporting its surplus
to Latvia and Belarus; the nuclear facilities inherited from the USSR,
however, have come under world scrutiny as seriously deficient in safety
standards. Agriculture is efficient compared with most of the former Soviet
Union. ”

“ Cape Verde's low per capita GDP reflects a poor natural resource base, a
17-year drought, and a high birthrate. The economy is service oriented, with
commerce, transport, and public services accounting for 65% of GDP during
the period 1985-88. Although nearly 70% of the population lives in rural
areas, agriculture's share of GDP is only 16%; the fishing sector accounts
for 4%. About 90% of food must be imported. The fishing potential, mostly
lobster and tuna, is not fully exploited. ”