Georgia
Georgia's main economic activities include the cultivation
of agricultural products such as citrus fruits, tea, hazelnuts, and
grapes; mining of manganese and copper; and output of a small
industrial sector producing alcoholic and nonalcoholic beverages,
metals, machinery, and chemicals. 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, achieving positive GDP growth and curtailing
inflation. However, the Georgian Government suffers from limited
resources due to a chronic failure to collect tax revenues. Georgia
also suffers from energy shortages; it privatized the T'bilisi
distribution network in 1998, but collection rates are low, making
the venture unprofitable. The country is pinning its hopes for
long-term growth on its role as a transit state for pipelines and
trade. The start of construction on the Baku-T'bilisi-Ceyhan oil
pipeline and the Baku-T'bilisi-Erzerum gas pipeline will bring
much-needed investment and job opportunities.
Germany
Germany's affluent and technologically powerful economy has
turned in a weak performance throughout much of the 1990s and early
2000s. The modernization and integration of the eastern German
economy continues to be a costly long-term problem, with annual
transfers from west to east amounting to roughly $70 billion.
Germany's ageing population, combined with high unemployment, has
pushed social security outlays to a level exceeding contributions
from workers. Structural rigidities in the labor market - including
strict regulations on laying off workers and the setting of wages on
a national basis - have made unemployment a chronic problem. Growth
in 2002 and 2003 fell short of 1%. Corporate restructuring and
growing capital markets are setting the foundations that could allow
Germany to meet the long-term challenges of European economic
integration and globalization, particularly if labor market
rigidities are further addressed. In the short run, however, the
fall in government revenues and the rise in expenditures have raised
the deficit above the EU's 3% debt limit.
Ghana
Well endowed with natural resources, Ghana has roughly 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.
Ghana opted for debt relief under the Heavily Indebted Poor Country
(HIPC) program in 2002. Policy priorities include tighter monetary
and fiscal policies, accelerated privatization, and improvement of
social services.
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 7% to the local economy, compared with 60% in
1984. The financial sector, tourism (almost 5 million visitors in
1998), shipping services fees, and duties on consumer goods also
generate revenue. The financial sector, the shipping sector, and
tourism each contribute 25%-30% of GDP. Telecommunications accounts
for another 10%. 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 half of GDP and with per capita GDP 70% of the
leading euro-zone economies. Tourism provides 15% of GDP. Immigrants
make up nearly one-fifth of the work force, mainly in menial jobs.
Greece is a major beneficiary of EU aid, equal to about 3.3% of GDP.
The economy has improved steadily with economic growth averaging 4%
since 1997, exceeding EU growth by more than 1 percentage point.
Remaining challenges include the reduction of the public debt,
inflation, and unemployment; and further restructuring of the
economy, including privatizing several state enterprises,
undertaking pension and other reforms, and minimizing bureaucratic
inefficiencies. The Olympic Games will be held in Athens in mid-2004.
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
Grenada relies on tourism as its main source of foreign
exchange, especially since the construction of an international
airport in 1985. Strong performances in construction and
manufacturing, together with the development of an offshore
financial industry, have also contributed to growth in national
output.
Guadeloupe
The Caribbean 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.