United States. Central Intelligence Agency

“ Over the last decade, real GDP growth has averaged 1.6% a
year, compared with the European Union average of 2.2%. Inflation is
four times the EU average, and the national debt has reached 140% of
GDP, the highest in the EU. Prime Minister PAPANDREOU will probably
only make limited progress correcting the economy's problems of high
inflation, large budget deficit, and decaying infrastructure. His
economic program suggests that although he will shun his expansionary
policies of the 1980s, he will avoid tough measures needed to slow
inflation or reduce the state's role in the economy. ”

“ Oil has supplanted forestry
as the mainstay of the economy, providing about two-thirds of
government revenues and exports. In the early 1980s rapidly rising oil
revenues enabled Congo to finance large-scale development projects
with growth averaging 5% annually, one of the highest rates in Africa.
Subsequently, growth has slowed to an average of roughly 1.5%
annually, only half the population growth rate. Political turmoil and
misguided government investment have derailed economic reform programs
sponsored by the IMF and World Bank. ”

“ The quality of statistics from eastern Germany is improving, yet many gaps remain; the federal government began producing all-German data for select economic statistics at the start of 1992. The most challenging economic problem is promoting eastern Germany's economic reconstruction - specifically, finding the right mix of fiscal, monetary, regulatory, and tax policies that will spur investment in eastern Germany - without destabilizing western Germany's economy or damaging relations with West European partners. ”

“ 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 1993 accounted for about 20.5% of GDP. GDP in the western region is now $19,400 per capita, or 78% of US per capita GDP. Eastern Germany's economy appears to be changing from one anchored on manufacturing into a more service-oriented economy. ”

“ The recession - which continued in 1992 with growth contracting by 4.1% - has been caused by economic overheating, depressed foreign markets, and the dismantling of the barter system between Finland and the former Soviet Union under 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 changes in monetary policy. ”

“ The bright spots are eastern Germany's construction, transportation, telecommunications, and service sectors, which have experienced strong growth. Western Germany has an advanced market economy and is a world leader in exports. It has a highly urbanized and skilled population that enjoys excellent living standards, abundant leisure time, and comprehensive social welfare benefits. Western Germany is relatively poor in natural resources, coal being the most important mineral. Western Germany's world-class companies manufacture technologically advanced goods. ”

“ 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. ”

“ Abundant mineral resources and hydropower have
formed the basis of industrial development since WWII. Output of the
extractive industries includes coal, iron ore, magnesite, graphite,
copper, zinc, lead, and precious metals. Manufacturing is centered on
heavy industry, including military 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. ”

“ Plantation crops - rubber and palm oil - and textiles
and plywood are being encouraged for both export and job generation.
Industrial output now accounts for almost 40% of GDP and is based on a
supply of diverse natural resources, including crude oil, natural gas,
timber, metals, and coal. Foreign investment has also boosted
manufacturing output and exports in recent years. Indeed, the
economy's growth is highly dependent on the continuing expansion of
nonoil exports. Japan remains Indonesia's most important customer and
supplier of aid. ”

“ The Turkish Cypriot economy has less than
one-third the per capita GDP in the south. Because it is recognized
only by Turkey, it has had much difficulty arranging foreign
financing, and foreign firms have hesitated to invest there. The
economy remains heavily dependent on agriculture, which employs more
than one-quarter of the workforce. Moreover, because the Turkish lira
is legal tender, the Turkish Cypriot economy has suffered the same
high inflation as mainland Turkey. To compensate for the economy's
weakness, Turkey provides direct and indirect aid to nearly every
sector ”

“ The devaluations have boosted the competitiveness of Finnish exports to the extent the recession bottomed out in 1993 with renewed economic growth expected in 1994. Unemployment probably will remain a serious problem during the next few years, with the majority of Finnish firms facing a weak domestic market and the troubled German and Swedish export markets. Declining revenues, increased transfer payments, and extensive funding to bail out the banking system pushed the central government's budget deficit to nearly 13% in 1993. ”

“ The socialist-oriented economy depends primarily upon revenues from the oil sector, which contributes practically all export earnings and about one-third of GDP. In 1990 per capita GDP was the highest in Africa at $5,410, but GDP growth rates have slowed and fluctuate sharply in response to changes in the world oil market. Import restrictions and inefficient resource allocations have led to shortages of basic goods and foodstuffs. ”

“ Major impediments to growth include frequent cyclones and
floods, government interference with the economy, a rapidly growing
labor force that cannot be absorbed by agriculture, a low level of
industrialization, failure to fully exploit energy resources (natural
gas) , and inefficient and inadequate power supplies. Excellent rice
crops and expansion of the export garment industry helped growth in
FY92 and FY93. Policy reforms intended to reduce government regulation
of private industry and promote public-sector efficiency have been
announced but are being implemented only slowly. ”

“ Rural Cambodia, where 90% of almost ten million Khmer
live, remains mired in poverty. The almost total lack of basic
infrastructure in the countryside will hinder development and will
contribute to a growing imbalance in growth between urban and rural
areas over the near term. Moreover, the new government's lack of
experience in administering economic and technical assistance
programs, and rampant corruption among officials, will slow the growth
of critical public sector investment. ”

“ Trade is important, with the export of goods representing about 30% of GDP. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. The economy, which experienced an average of 4.9% annual growth between 1987 and 1989, sank into deep recession in 1991 as growth contracted by 6.5%. ”

“ Nevertheless, following decades of mismanagement and
statist policies, the economy in the late 1980s was plagued with huge
external debts and recurring bouts of hyperinflation. Elected in 1989,
in the depths of recession, President MENEM has implemented a
comprehensive economic restructuring program that shows signs of
putting Argentina on a path of stable, sustainable growth. Argentina's
currency has traded at par with the US dollar since April 1991, and
inflation has fallen to its lowest level in 20 years. ”

“ Despite an abundance of natural wealth, and a manageable rate of
population growth, the economy is hobbled by poor fiscal management.
In 1992, the fiscal deficit widened to 2.4% of GDP, and Gabon failed
to settled arrears on its bilateral debt, leading to a cancellation of
rescheduling agreements with official and private creditors.
Devaluation of the local currency by 50% in January 1994 could set off
an inflationary spiral if the government fails to reign in spending
and grants large wage increases to an already overpaid public sector
workforce. ”

“ Egypt has one of the largest public sectors of all the Third World economies, most industrial plants being owned by the government. 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. ”

“ Austria occupies specialized niches in European industry and services
(tourism, banking) and produces almost enough food to feed itself with
only 8% of the labor force in agriculture. Increased export sales
resulting from German unification, boosted Austria's economy through
1991, but Austria's GDP growth slowed to 2% in 1992 and -0.5% in 1993
due to the weak international economy, particularly in Germany - its
largest trading partner. GDP growth will resume slowly in 1994, with
estimates ranging from a 0.5% to a 1% increase. ”

“ The result has been a strong surge 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) . ”

“ Because currency exchange rates depend on a variety of international and domestic financial forces that often have little relation to domestic output, use of these rates is less satisfactory for calculating GNP/GDP than the PPP method. In developing countries with weak currencies the exchange rate estimate of GNP/GDP in dollars is typically one- fourth to one-half the PPP estimate. Furthermore, exchange rates may suddenly go up or down by 10% or more because of market forces or official fiat whereas real output has remained unchanged. ”

“ Two years after independence - and one year
after the introduction of the kroon - Estonians are beginning to reap
tangible benefits; inflation is low; production declines appear to
have bottomed out; and living standards are rising. Economic
restructuring is clearly underway with the once-dominant
energy-intensive heavy industrial sectors giving way to
labor-intensive light industry and the underdeveloped service sector.
The private sector is growing rapidly ”

“ India's economy is a mixture of traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a
multitude of support services. Faster economic growth in the 1980s
permitted a significant increase in real per capita private
consumption. A large share of the population, perhaps as much as 40%,
remains too poor to afford an adequate diet. ”