United States. Central Intelligence Agency

“ Subsistence agriculture accounts for half of GDP and provides 80% of total employment. The predominant crop is rice. In non-drought years, Laos is self-sufficient overall in food, but each year flood, pests, and localized drought cause shortages in various parts of the country. For the foreseeable future the economy will continue to depend on aid from the IMF and other international sources; aid from the former USSR and Eastern Europe has been cut sharply. As in many developing countries, deforestation and soil erosion will hamper efforts to maintain the high rate of GDP growth. ”

“ The economy, one of the world's least developed, is based on agriculture and forestry, which provide the main livelihood for 90% of the population and account for about half of GDP. 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 with India's through strong trade and monetary links. The industrial sector is small and technologically backward, with most production of the cottage industry type. ”

“ Moldova enjoys a favorable climate and good farmland but has no major mineral deposits. As a result, Moldova's economy is primarily based on agriculture, featuring fruits, vegetables, wine, and tobacco. Moldova must import all of its supplies of oil, coal, and natural gas, and energy shortages have contributed to sharp production declines since the breakup of the Soviet Union in 1991. The Moldovan government is making steady progress on an ambitious economic reform agenda, and the IMF has called Moldova a model for the region. ”

“ The government has pursued a moderate program of economic reform and privatization which is gradually lifting state controls over economic activity and shifting assets into the private sector. Nevertheless, government control over key sectors of the economy remains strong. Sustained economic hardships and continued pressures from industrial elites will make it difficult for the government to sustain its policies of monetary and fiscal discipline which had brought down inflation by the end of 1994. ”

“ The economy appeared to have bottomed out in 1994, and Vilnius's policies have laid the groundwork for vigorous recovery over the next few years. Recovery will build on Lithuanian's strategic location with its ice-free port at Klaipeda and its rail and highway hub in Vilnius connecting it with Eastern Europe, Belarus, Russia, and Ukraine, and on its agriculture potential, highly skilled labor force, and diversified industrial sector. Lacking important natural resources, it will remain dependent on imports of fuels and raw materials. ”

“ Since World 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. In the 1980s, Canada registered one of the highest rates of real growth among the OECD nations, averaging about 3.2%. With its great natural resources, skilled labor force, and modern capital plant, Canada has excellent economic prospects, although the country still faces high unemployment and a growing debt. ”

“ The new president, FREI, who took office in March 1994, has emphasized social spending even more. Growth in 1991-94 has averaged 6.5% annually, with an estimated one million Chileans having moved out of poverty in the last four years. Copper remains vital to the health of the economy; Chile is the world's largest producer and exporter of copper. Success in meeting the government's goal of sustained annual growth of 5% depends on world copper prices, the level of confidence of foreign investors and creditors, and the government's own ability to maintain a conservative fiscal stance. ”

“ Many aspects of a market economy have been put in place and have begun to function, but much of the economy, especially the industrial sector, has yet to re-establish market links lost with the collapse of the other centrally planned Soviet Bloc economies. The prices of many imported industrial inputs, especially energy products, have risen markedly, and falling real wages have not sufficed to restore competitiveness. The government plans more extensive privatization in 1995 to improve the management of enterprises and to encourage foreign investment. ”

“ Industry has been greatly overstaffed, one reflection of the rigidities of Communist central planning and management. TITO had pushed the development of military industries in the republic with the result that Bosnia hosted a large share of Yugoslavia's defense plants. As of February 1995, Bosnia and Herzegovina was being torn apart by the continued bitter interethnic warfare that has caused production to plummet, unemployment and inflation to soar, and human misery to multiply. ”

“ Real GDP is likely to have picked up in 1994, and inflation is estimated to have risen to between 5% and 6%. The Turkish Cypriot economy has less than one-third the per capita GDP of 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 one-quarter of the work force. Moreover, because the Turkish lira is legal tender, the Turkish Cypriot economy has suffered the same high inflation as mainland Turkey. ”

“ The industrial sector, until recently dominated by steel, has become increasingly more diversified, particularly toward high-technology firms. During the past decade, growth in the financial sector has more than compensated for the decline in steel. Services, especially banking, account for a growing proportion of the economy. Luxembourg participates in an economic union with Belgium on trade and most financial matters, is also closely connected economically to the Netherlands, and as a member of the 15-member European Union enjoys the advantages of the open European market. ”

“ Indonesia is a mixed economy with some socialist institutions and central planning but with a recent emphasis on deregulation and private enterprise. Indonesia has extensive natural wealth, yet, with a large and rapidly increasing population, it remains a rather poor country. Real GDP growth in 1985-94 averaged about 6%, quite impressive, but not sufficient to both slash underemployment and absorb the 2.3 million workers annually entering the labor force. Agriculture, including forestry and fishing, is an important sector, accounting for 21% of GDP and over 50% of the labor force. ”

“ 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 economy depends on outside sources for all of its oil and gas and most of its modern machinery and parts. An important supplement of GDP is the remittances from thousands of Macedonians working in Germany and other West European nations. Continued political turmoil, both internally and in the region as a whole, prevents any swift readjustments of trade patterns and economic programs. The country's industrial output and GDP are expected to decline further in 1995. ”

“ Moreover, a serious drawdown in inventories and critical shortages in the energy sector have led to increasing interruptions in industrial production. Abundant mineral resources and hydropower have formed the basis of industrial development since World War II. 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. ”

“ The hydrocarbons sector is the backbone of the economy, accounting for roughly 57% of government revenues, 25% of GDP, and almost all export earnings; Algeria has the fifth largest reserves of natural gas in the world and ranks fourteenth for oil. Algiers' efforts to reform one of the most centrally planned economies in the Arab world began after the 1986 collapse of world oil prices plunged the country into a severe recession. In 1989, the government launched a comprehensive, IMF-supported program to achieve macroeconomic stabilization and to introduce market mechanisms into the economy. ”

“ From 60 to 100 million surplus rural workers are adrift between the villages and the cities, many barely subsisting through part-time low-pay jobs. Popular resistance, changes in central policy, and loss of authority by rural cadres have weakened China's population control program, which is essential to the nation's long-term economic viability. One of the most dangerous long-term threats to continued rapid economic growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. ”

“ The great majority of households gain their livelihoods from subsistence farming and migrant labor; a large portion of the adult male work force is employed in South African mines. Manufacturing depends largely on farm products to support the milling, canning, leather, and jute industries; other industries include textile, clothing, and construction. Although drought has decreased agricultural activity over the past few years, improvement of a major hydropower facility will permit the sale of water to South Africa and allow Lesotho's economy to continue its moderate growth. ”

“ The economy depends heavily on tourism (70% of GDP and 75% of foreign currency earnings) and offshore financial services, with the tourist industry aimed at the luxury market and catering mainly to visitors from North America. 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 in the world. ”

“ Despite attempts by the government to diversify, the economy is still largely dependent on agriculture and related industries. After several years of lagging performance, the Ivorian economy began a comeback in 1994, due to improved prices for cocoa and coffee, growth in non-traditional primary exports such as pineapples and rubber, trade and banking liberalization, offshore oil and gas discoveries, and generous external financing and debt rescheduling by multilateral lenders and France. The 50% devaluation in January 1994 caused a one time jump in the inflation rate. ”

“ 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. Forestry, an important export earner, provides a secondary occupation for the rural population. The economy, which experienced an average of 4.9% annual growth between 1987 and 1989, sank into deep recession in 1991 as GDP contracted by 6.5%. ”

“ Despite an increase in external financial aid and favorable price increases for cotton - the primary source of foreign exchange - the corrupt and enfeebled government bureaucracy continues to dampen economic enterprise by neglecting payments to domestic suppliers and public sector salaries. Oil production in the Lake Chad area remains a distant prospect and the subsistence-driven economy probably will continue to limp along in the near term. ”

“ Subsistence farming predominates. Although pre-independence Equatorial Guinea counted on cocoa production for hard currency earnings, the deterioration of the rural economy under successive brutal regimes has diminished potential for agriculture-led growth. A number of aid programs sponsored by the World Bank and the international donor community have failed to revitalize export agriculture. Businesses for the most part are owned by government officials and their family members. Commerce accounts for about 8% of GDP and the construction, public works, and service sectors for about 38%. ”

“ Ireland has substantially reduced its external debt since 1987, to 40% of GDP in 1994. Over the same period, inflation has fallen sharply and chronic trade deficits have been transformed into annual surpluses. Unemployment remains a serious problem, however, and job creation is the main focus of government policy. To ease unemployment, Dublin aggressively courts foreign investors and recently created a new industrial development agency to aid small indigenous firms. ”

“ Three years after independence - and two years after the introduction of the kroon - Estonians are beginning to reap tangible benefits; inflation, though still high, was brought down to about 2% per month in second half 1994; production declines have bottomed out with estimated growth of 4% in 1994; and living standards are rising. Economic restructuring has been dramatic. By 1994 the service sector accounted for over 55% of GDP, while the once-dominant heavy industrial sector continues to shrink. ”

“ New Delhi has always paid its foreign debts on schedule and has stimulated exports, attracted foreign investment, and revived confidence in India's economic prospects. Foreign exchange reserves, precariously low three years ago, now total more than $19 billion. Positive factors for the remainder of the 1990s are India's strong entrepreneurial class and the central government's recognition of the continuing need for market-oriented approaches to economic development, for example in upgrading the wholly inadequate communications facilities. ”

“ 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 fluctuated sharply in response to changes in the world oil market. Import restrictions and inefficient resource allocations have led to periodic shortages of basic goods and foodstuffs. ”

“ Scanty rainfall limits crop production to fruits and vegetables, and most food must be imported. Djibouti provides services as both a transit port for the region and an international transshipment and refueling center. It has few natural resources and little industry. The nation is, therefore, heavily dependent on foreign assistance (an important supplement to GDP) to help support its balance of payments and to finance development projects. ”

“ The development of the oil sector led rapid economic growth between 1970 and 1985. Growth came to an abrupt halt in 1986, precipitated by steep declines in the prices of major exports: coffee, cocoa, and petroleum. Export earnings were cut by almost one-third, and inefficiencies in fiscal management were exposed. In 1990-93, with support from the IMF and World Bank, the government began to introduce reforms designed to spur business investment, increase efficiency in agriculture, and recapitalize the nation's banks. ”