Georgia:
Georgia's economy has traditionally revolved around Black
Sea tourism; cultivation of citrus fruits, tea, and grapes; mining
of manganese and copper; and output of a small industrial sector
producing wine, metals, machinery, chemicals, and textiles. The
country imports the bulk of its energy needs, including natural gas
and oil products. Its only sizable internal energy resource is
hydropower. Despite the severe damage the economy has suffered due
to civil strife, Georgia, with the help of the IMF and World Bank,
has made substantial economic gains since 1995, increasing GDP
growth and slashing inflation. The Georgian economy continues to
experience large budget deficits due to a failure to collect tax
revenues. Georgia also still suffers from energy shortages; it
privatized the distribution network in 1998, and deliveries are
steadily improving. The country is pinning its hopes for long-term
recovery on the development of an international transportation
corridor through the key Black Sea ports of P'ot'i and Bat'umi. The
growing trade deficit, continuing problems with tax evasion and
corruption, and political uncertainties cloud the short-term
economic picture.
Germany:
Germany possesses the world's third most technologically
powerful economy after the US and Japan, but structural market
rigidities - including the substantial non-wage costs of hiring new
workers - have made unemployment a long-term, not just a cyclical,
problem. Germany's aging population, combined with high
unemployment, has pushed social security outlays to a level
exceeding contributions from workers. The modernization and
integration of the eastern German economy remains a costly long-term
problem, with annual transfers from western Germany amounting to
roughly $70 billion. Growth picked up to 3% in 2000, largely due to
recovering global demand; newly passed business and income tax cuts
are expected to keep growth strong in 2001. Corporate restructuring
and growing capital markets are transforming the German economy to
meet the challenges of European economic integration and
globalization in general.
Ghana:
Well endowed with natural resources, Ghana has twice the per
capita output of the poorer countries in 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 for 36% of GDP and employs
60% of the work force, mainly small landholders. In 1995-97, Ghana
made mixed progress under a three-year structural adjustment program
in cooperation with the IMF. On the minus side, public sector wage
increases and regional peacekeeping commitments have led to
continued inflationary deficit financing, depreciation of the cedi,
and rising public discontent with Ghana's austerity measures.
Political uncertainty and a depressed cocoa market led to
disappointing growth in 2000. A rebound in the cocoa market should
push growth over 4% in 2001-02.
Gibraltar:
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 11% to the local economy. The financial sector
accounts for 20% of GDP; tourism (almost 6 million visitors in
1998), shipping services fees, and duties on consumer goods also
generate revenue. In recent years, Gibraltar has seen major
structural change from a public to a private sector economy, but
changes in government spending still have a major impact on the
level of employment.
Glorioso Islands:
no economic activity
Greece:
Greece has a mixed capitalist economy with the public sector
accounting for about half of GDP. Tourism is a key industry,
providing a large portion of GDP and foreign exchange earnings.
Greece is a major beneficiary of EU aid, equal to about 4% of GDP.
The economy has improved steadily over the last few years, as the
government has tightened policy in the run-up to Greece's entry into
the EU's Economic and Monetary Union (EMU) on 1 January 2001. In
particular, Greece has cut its budget deficit to below 1% of GDP and
tightened monetary policy, with the result that inflation fell from
20% in 1990 to 3.1% in 2000. Major challenges remaining include the
reduction of unemployment and further restructuring of the economy,
including the privatization of some leading state enterprises.
Growth, 3.8% in 2000, may fall off to 3%-3.5% in 2001.
Greenland:
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 in the economy. Despite several interesting
hydrocarbon and minerals exploration activities, it will take
several 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.
Grenada:
In this island economy progress in fiscal reforms and
prudent macroeconomic management have kept annual growth steady
since 1998. The increase in economic activity has been led by
construction and trade. Tourist facilities are being expanded;
tourism is the leading foreign exchange earner. Major short-term
concerns are the rising fiscal deficit and the deterioration in the
external account balance. Grenada shares a common central bank and a
common currency with seven other members of the Organization of
Eastern Caribbean States (OECS).
Guadeloupe:
The economy depends on agriculture, tourism, light
industry, and services. It also depends on France for large
subsidies and imports. Tourism is a key industry, with 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 for local consumption, although Guadeloupe is still
dependent on imported food, mainly from France. 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.
Guam:
The economy depends on US military spending, tourism, and the
export of fish and handicrafts. Total US grants, wage payments, and
procurement outlays amounted to $1 billion in 1998. 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 1 million tourists visit Guam each year. The industry has
recently suffered setbacks because of the continuing Japanese
slowdown; the Japanese normally make up almost 90% of the tourists.
Most food and industrial goods are imported. Guam faces the problem
of building up the civilian economic sector to offset the impact of
military downsizing.