United States. Central Intelligence Agency

“ 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. Canada started the 1990s in recession, and real rates of growth have averaged only 1.1% so far this decade. Because of slower growth, Canada still faces high unemployment-especially in Quebec and the Maritime Provinces-and a large public sector debt. With its great natural resources, skilled labor force, and modern capital plant, however, Canada will enjoy better economic prospects in the future. ”

“ Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population and accounting for 40% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Production of textiles and carpets has expanded recently and accounted for about 80% of foreign exchange earnings in the past two years. Apart from agricultural land and forests, exploitable natural resources are mica, hydropower, and tourism. ”

“ Offshore banking, manufacturing, and tourism are key sectors of the economy. The government's policy of offering incentives to high-technology companies and financial institutions to locate on the island has paid off in expanding employment opportunities in high-income industries. As a result, agriculture and fishing, once the mainstays of the economy, have declined in their shares of GDP. Banking and other services now contribute more than half to GDP. Trade is mostly with the UK. The Isle of Man enjoys free access to EU markets. ”

“ The economy is predominately agricultural with roughly 90% of the population dependent on subsistence agriculture. Its economic health depends on the coffee crop, which accounts for 80% of foreign exchange earnings. The ability to pay for imports therefore rests largely on the vagaries of the climate and the international coffee market. As part of its economic reform agenda, launched in February 1991 with IMF and World Bank support, Burundi is trying to diversify its agricultural exports, attract foreign investment in industry, and modernize government budgetary practices. ”

“ Inflation rose to 22.5% in 1995 from 13.5% in 1994, receded to 17.5% in 1996, then dropped to 11.2% in 1997. Unemployment appears moderate at 5.7%, but substantial underemployment continues. Furthermore, substantial government deficits have undermined efforts to maintain the quality of social services. The government thus faces a formidable set of problems: to curb inflation, reduce the deficit, encourage domestic savings, and improve public sector efficiency while increasing the role of the private sector, all this in harmony with IMF agreements. ”

“ India's exports, currency, and foreign institutional investment were affected by the East Asian crisis in late 1997 and early 1998, but capital account controls, a low ratio of short-term debt to reserves, and enhanced supervision of the financial sector helped insulate it from near term balance-of-payments problems. Export growth, has been slipping in 1996-97, averaging only about 4% to 5%-a large drop from the more than 20% increases it was experiencing over the prior three years-mainly because of the fall in Asian currencies relative to the rupee. ”

“ Progress on economic reform, a Paris Club debt rescheduling in 1995, and oil and gas sector expansion have contributed to a recovery since 1995. Investments in developing hydrocarbon resources are likely to maintain growth and export earnings. Continuing but gradual government efforts to attract foreign and domestic investment outside that sector seek to diversify the economy and tackle problems of high unemployment and falling living standards, problems as yet untouched by the macroeconomic turnaround. ”

“ Growth of the agricultural sector is still fairly slow rebounding to only 5.7% in 1997 from a fall of 0.1% in 1996. Agricultural investment has slowed, while costly subsidies on fertilizer, food distribution, and rural electricity remain. Nevertheless, even if a series of weak coalition governments continue to rule in New Delhi over the next few years and are unable to push reforms aggressively, parts of the economy that have already benefited from deregulation will continue to grow. Indian think tanks project GDP growth of at least 5.5% in 1998. ”

“ Elected in 1989, in the depths of recession, President MENEM has implemented a comprehensive economic restructuring program that has put 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 50 years. Argentines have responded to price stability by repatriating capital and investing in domestic industry. Growth averaged more than 8% between 1991 and 1994, then fell 4.6% in 1995, largely in reaction to the Mexican peso crisis. The economy has since recovered strongly. ”

“ The industrial sector, until recently dominated by steel, has become increasingly more diversified. During the past decades, 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 EU, enjoys the advantages of the open European market. ”

“ The government is pushing for increased exports of manufactured goods, but competition in international markets continues to be severe. Australia has suffered from the low growth and high unemployment characterizing the OECD countries in the early 1990s, but the economy has expanded at reasonably steady rates in recent years. In addition to high unemployment, short-term economic problems include a balancing of output growth and inflationary pressures and the stimulation of exports to offset rising imports, especially given the economic crisis in Asia. ”

“ Azerbaijan shares all the formidable problems of the ex-Soviet republics in 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. A major short-term obstacle to economic progress, including stepped up foreign investment, is the continuing conflict with Armenia over the ethnic Armenian-dominated region of Nagorno-Karabakh. ”

“ The trade deficit has been growing, mostly as a result of low export prices for sugar and bananas and could increase further if a pre-election boost in government spending leads to a rise in imports. The ruling in 1997 by the World Trade Organization against the European Union's banana import regime-which had granted Belize preferential treatment - is also hurting the prospects for growth, and could contribute to an increase in already high unemployment. ”

“ Since the implosion of the USSR in December 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexes of the Soviet area. The agricultural sector has long-term needs for more investment and updated technology. The privatization of industry has been at a slower pace, but ahead of most of the rest of the CIS. Armenia is a food importer and its mineral deposits (gold, bauxite) are small. ”

“ Farming, forestry, and fishing are also major components of GDP. 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 IMF have been cut off since 1993 because of the government's gross corruption and mismanagement. ”

“ The economy consists of 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) , and extensively subsidizes agriculture, fishing, and areas with sparse resources. Norway maintains an extensive welfare system that helps propel public sector expenditures to more than 50% of GDP and results in one of the highest average tax levels in the world. ”

“ Economy-overview: Bosnia and Herzegovina ranked next to The Former Yugoslav Republic of Macedonia as the poorest republic in the old Yugoslav federation. Although agriculture has been almost all in private hands, farms have been small and inefficient, and the republic traditionally has been a net importer of food. 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. ”

“ The economy depends heavily on the fishing industry, which provides 75% of export earnings and employs 12% of the work force. In the absence of other natural resources-except energy-Iceland's economy is vulnerable to changing world fish prices. The economy remains sensitive to declining fish stocks as well as to drops in world prices for its main exports: fish and fish products, aluminum, and ferrosilicon. ”

“ Annual GDP growth has averaged over 4% in recent years from a low base. Its economy is largely agricultural, with the cultivation of rice the single most important activity in the economy. Major impediments to growth include frequent cyclones and floods, the inefficiency of state-owned enterprises, a rapidly growing labor force that cannot be absorbed by agriculture, delays in exploiting energy resources (natural gas) , inadequate power supplies, and slow implementation of economic reforms. ”

“ Oil production and the supporting activities are vital to the economy, contributing about 50% to GDP. Notwithstanding the signing of a peace accord in November 1994, sporadic violence continues, millions of land mines remain, and many farmers are reluctant to return to their fields. As a result, much of the country's food must still be imported. To take advantage of its rich resources-gold, diamonds, extensive forests, Atlantic fisheries, arable land, and large oil deposits-Angola will need to implement the peace agreement and reform government policies. ”

“ Czech difficulties in 1997 contrast with earlier achievements of strong GDP growth, a balanced budget, and inflation and unemployment that were among the lowest in the region. The Czech economy's transition problems continue to be too much direct and indirect government influence on the privatized economy, the sometimes ineffective management of privatized firms, and a shortage of experienced financial analysts for the banking system. Prague forecasts a balanced budget, 2.2% GDP growth, 5.2% unemployment, and 10% inflation for 1998. ”

“ Drought conditions in 1997 depressed activity in the key agricultural sector, holding down exports and contributing to a 2.2% contraction in real GDP. Favorable rainfalls in the fall of 1997 have led to forecasts of robust, 8%-9% real GDP growth in 1998. Servicing the external debt, preparing the economy for freer trade with the European Union, improving education and living standards, and finding jobs for Morocco's youthful population remain long-term challenges. ”

“ Budget deficits have been slashed while foreign reserves in 1997 were at an all-time high. And Egypt has been moving toward a more decentralized, market-oriented economy. These economic reforms and growing investment opportunities have prompted increasing foreign investment, but incoming capital has largely been concentrated in stock market portfolio flows. Egypt's economy also has been hit by a sharp downturn in tourism-a key foreign exchange and job producing sector-following the 17 November 1997 massacre of foreign tourists at Luxor. ”

“ Import restrictions and inefficient resource allocations have led to periodic shortages of basic goods and foodstuffs. The nonoil manufacturing and construction sectors, which account for about 20% of GDP, have expanded from processing mostly agricultural products to include the production of petrochemicals, iron, steel, and aluminum. Although agriculture accounts for only 5% of GDP, it employs 18% of the labor force. Climatic conditions and poor soils severely limit farm output, and Libya imports about 75% of its food requirements. ”

“ Economy-overview: Possessing large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and is expanding its presence in world markets. Prior to the institution of a stabilization plan-the Plano Real (Real Plan) in mid-1994, stratospheric inflation rates had disrupted economic activity and discouraged foreign investment. Since then, tight monetary policy has brought inflation under control-consumer prices increased by less than 5% in 1997 compared to more than 1,000% in 1994. ”

“ Peace has enabled the central government to restore control in Beirut, begin collecting taxes, and regain access to key port and government facilities. Economic recovery has been helped by a financially sound banking system and resilient small- and medium-scale manufacturers, with family remittances, banking services, manufactured and farm exports, and international aid as the main sources of foreign exchange. Lebanon's economy has made impressive gains since Prime Minister HARIRI launched his $18 billion "Horizon 2000" reconstruction program in 1993. ”

“ The economy is based largely on tourism (including gambling) and textile and fireworks manufacturing. Efforts to diversify have spawned other small industries-toys, artificial flowers, and electronics. The tourist sector has accounted for roughly 25% of GDP, and the clothing industry has provided about two-thirds of export earnings; the gambling industry probably represents over 40% of GDP. Macau depends on China for most of its food, fresh water, and energy imports. Japan and Hong Kong are the main suppliers of raw materials and capital goods. ”

“ Economy-overview: One of the world's poorest countries, Comoros 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. ”

“ Economy-overview: In 1997 the government emphasized a fixed exchange rate, along with conservative monetary and fiscal policies to promote foreign investment. Inflation fell to an unprecedented low of 2%. Exports reached a record level and were the main engine of growth. Productivity in other sectors remained weaker, however. For the last few years, El Salvador has experienced sizable deficits in both its trade and its fiscal accounts. The trade deficit has been offset by remittances from the large number of Salvadorans living abroad and from external aid. ”

“ Most formal transactions are conducted in hard currency but a barter economy flourishes in all but the largest cities. Most individuals and families survive through subsistence farming or petty trade. International investors show renewed interest, especially in the mining and telecommunications sectors. However, poor infrastructure, an uncertain legal framework, corruption and lack of transparency in government economic policy remain a brake on investment and growth. ”

“ The economy depends mainly on US military spending and on revenue generated by the tourism industry. Over the past 20 years, the tourist industry has grown rapidly, creating a construction boom for new hotels and the expansion of older ones. More than one million tourists visit Guam each year. Most food and industrial goods are imported, with about 75% from the US. Guam faces the problem of building up the civilian economic sector to offset the impact of military downsizing. ”