The 2003 CIA World Factbook

by United States. Central Intelligence Agency

Guatemala
The agricultural sector accounts for about one-fourth of
GDP, two-thirds of exports, and half of the labor force. Coffee,
sugar, and bananas are the main products. Former President ARZU
(1996-2000) worked to implement a program of economic liberalization
and political modernization. President PORTILLO has continued the
liberalization program but with more sporadic results. The 1996
signing of the peace accords, which ended 36 years of civil war,
removed a major obstacle to foreign investment, but numerous
corruption scandals associated with the PORTILLO administration have
dampened investor confidence. The distribution of income remains
highly unequal, with perhaps 75% of the population below the poverty
line. Ongoing challenges include increasing the government revenues,
negotiating further assistance from international donors, upgrading
both government and private financial operations, and narrowing the
trade deficit. A free trade agreement between the US and Central
American countries promises greater access to US and neighboring
markets.

Guernsey
Financial services - banking, fund management, insurance,
etc. - account for about 55% of total income in this tiny Channel
Island economy. Tourism, manufacturing, and horticulture, mainly
tomatoes and cut flowers, have been declining. Light tax and death
duties make Guernsey a popular tax haven. The evolving economic
integration of the EU nations is changing the rules of the game
under which Guernsey operates.

Guinea
Guinea possesses major mineral, hydropower, and agricultural
resources, yet remains an underdeveloped nation. The country
possesses over 30% of the world's bauxite reserves and is the
second-largest bauxite producer. The mining sector accounted for
about 75% of exports in 1999. Long-run improvements in government
fiscal arrangements, literacy, and the legal framework are needed if
the country is to move out of poverty. The government made
encouraging progress in budget management in 1997-99, and reform
progress was praised in the World Bank/IMF October 2000 assessment.
However, fighting along the Sierra Leonean and Liberian borders has
caused major economic disruptions. In addition to direct defense
costs, the violence has led to a sharp decline in investor
confidence. Foreign mining companies have reduced expatriate staff,
while panic buying has created food shortages and inflation in local
markets. Multilateral aid - including Heavily Indebted Poor
Countries (HIPC) debt relief - and single digit inflation permitted
moderate 3.7% growth in 2002. Growth should strengthen in 2003
because of a slowly improving security situation and increased
investor confidence.

Guinea-Bissau
One of the 10 poorest countries in the world,
Guinea-Bissau depends mainly on farming and fishing. Cashew crops
have increased remarkably in recent years, and the country now ranks
sixth in cashew production. Guinea-Bissau exports fish and seafood
along with small amounts of peanuts, palm kernels, and timber. Rice
is the major crop and staple food. However, intermittent fighting
between Senegalese-backed government troops and a military junta
destroyed much of the country's infrastructure and caused widespread
damage to the economy in 1998; the civil war led to a 28% drop in
GDP that year, with partial recovery in 1999-2002. Before the war,
trade reform and price liberalization were the most successful part
of the country's structural adjustment program under IMF
sponsorship. The tightening of monetary policy and the development
of the private sector had also begun to reinvigorate the economy.
Because of high costs, the development of petroleum, phosphate, and
other mineral resources is not a near-term prospect. However,
unexploited offshore oil reserves could provide much-needed revenue
in the long run. The inequality of income distribution is one of the
most extreme in the world. The government and international donors
continue to work out plans to forward economic development from a
lamentably low base. Government drift and indecision, however, have
resulted in low growth in 2002 and dim prospects for 2003.

Guyana
The Guyanese economy has exhibited moderate economic growth
in 2001-02, based on expansion in the agricultural and mining
sectors, a more favorable atmosphere for business initiatives, a
more realistic exchange rate, fairly low inflation, and the
continued support of international organizations. Chronic problems
include a shortage of skilled labor and a deficient infrastructure.
The government is juggling a sizable external debt against the
urgent need for expanded public investment. The bauxite mining
sector should benefit in the near term by restructuring and partial
privatization.

Haiti
About 80% of the population lives in abject poverty. Nearly
70% of all Haitians depend on the agriculture sector, which consists
mainly of small-scale subsistence farming and employs about
two-thirds of the economically active work force. Following
legislative elections in May 2000, fraught with irregularities,
international donors - including the US and EU - suspended almost
all aid to Haiti. The economy shrank an estimated 1.2% in 2001 and
an estimated 0.9% in 2002. The contraction will likely intensify in
2003 unless a political agreement with donors is reached on economic
policy. Suspended aid and loan disbursements totaled more than $500
million at the start of 2003.

Heard Island and McDonald Islands
No indigenous economic activity,
but the Australian Government allows limited fishing around the
islands.

Holy See (Vatican City)
This unique, noncommercial economy is
supported financially by an annual tax on Roman Catholic dioceses
throughout the world, as well as by special collections (known as
Peter's Pence); the sale of postage stamps, coins, medals, and
tourist mementos; fees for admission to museums; and the sale of
publications. Investments and real estate income also account for a
sizable portion of revenue. The incomes and living standards of lay
workers are comparable to those of counterparts who work in the city
of Rome.

Honduras
Honduras, one of the poorest countries in the Western
Hemisphere with an extraordinarily unequal distribution of income,
is banking on expanded trade privileges under the Enhanced Caribbean
Basin Initiative and on debt relief under the Heavily Indebted Poor
Countries (HIPC) initiative. While the country has met most of its
macroeconomic targets, it failed to meet the IMF's goals to
liberalize its energy and telecommunications sectors. Growth remains
dependent on the status of the US economy, its major trading
partner, on commodity prices, particularly coffee, and on reduction
of the high crime rate.

Hong Kong
Hong Kong has a free market economy highly dependent on
international trade. Natural resources are limited, and food and raw
materials must be imported. Imports and exports, including
reexports, each exceed GDP in dollar value. Even before Hong Kong
reverted to Chinese administration on 1 July 1997 it had extensive
trade and investment ties with China. Hong Kong has been further
integrating its economy with China because China's growing openness
to the world economy has increased competitive pressure on Hong
Kong's service industries, and Hong Kong's re-export business from
China is a major driver of growth. Per capita GDP compares with the
level in the four big economies of Western Europe. GDP growth
averaged a strong 5% in 1989-1997, but Hong Kong suffered two
recessions in the past 6 years because of the Asian financial crisis
in 1998 and the global downturn of 2001-2002. The Severe Acute
Respiratory Syndrome (SARS) outbreak has also battered Hong Kong's
economy but the resumption of strong growth began in 2003.