The 2003 CIA World Factbook

by United States. Central Intelligence Agency

San Marino
The tourist sector contributes over 50% of GDP. In 2000
more than 3 million tourists visited San Marino. The key industries
are banking, wearing apparel, electronics, and ceramics. Main
agricultural products are wine and cheeses. The per capita level of
output and standard of living are comparable to those of the most
prosperous regions of Italy, which supplies much of its food.

Sao Tome and Principe
This small poor island economy has become
increasingly dependent on cocoa since independence 28 years ago.
Cocoa production has substantially declined in recent years because
of drought and mismanagement, but strengthening prices brighten
prospects for 2003. Sao Tome has to import all fuels, most
manufactured goods, consumer goods, and a substantial amount of
food. Over the years, it has been unable to service its external
debt and has had to depend on concessional aid and debt
rescheduling. Sao Tome benefited from $200 million in debt relief in
December 2000 under the Highly Indebted Poor Countries (HIPC)
program. Sao Tome's success in implementing structural reforms has
been rewarded by international donors, who pledged increased
assistance in 2001. Considerable potential exists for development of
a tourist industry, and the government has taken steps to expand
facilities in recent years. The government also has attempted to
reduce price controls and subsidies. Sao Tome is optimistic that
substantial petroleum discoveries are forthcoming in its territorial
waters in the oil-rich waters of the Gulf of Guinea; production
could begin as early as 2004.

Saudi Arabia
This is an oil-based economy with strong government
controls over major economic activities. Saudi Arabia has the
largest reserves of petroleum in the world (26% of the proved
reserves), ranks as the largest exporter of petroleum, and plays a
leading role in OPEC. The petroleum sector accounts for roughly 75%
of budget revenues, 45% of GDP, and 90% of export earnings. About
25% of GDP comes from the private sector. Roughly 4 million foreign
workers play an important role in the Saudi economy, for example, in
the oil and service sectors. The government in 1999 announced plans
to begin privatizing the electricity companies, which follows the
ongoing privatization of the telecommunications company. The
government is supporting private sector growth to lessen the
kingdom's dependence on oil and increase employment opportunities
for the swelling Saudi population. Priorities for government
spending in the short term include additional funds for the water
and sewage systems and for education. Water shortages and rapid
population growth constrain the government's efforts to increase
self-sufficiency in agricultural products.

Senegal
In January 1994, Senegal undertook a bold and ambitious
economic reform program with the support of the international donor
community. This reform began with a 50% devaluation of Senegal's
currency, the CFA franc, which was linked at a fixed rate to the
French franc. Government price controls and subsidies have been
steadily dismantled. After seeing its economy contract by 2.1% in
1993, Senegal made an important turnaround, thanks to the reform
program, with real growth in GDP averaging 5% annually during
1995-2002. Annual inflation had been pushed down to less than 1%,
but rose to an estimated 3.3% in 2001 and 3.0% in 2002. Investment
rose steadily from 13.8% of GDP in 1993 to 16.5% in 1997. As a
member of the West African Economic and Monetary Union (WAEMU),
Senegal is working toward greater regional integration with a
unified external tariff. Senegal also realized full Internet
connectivity in 1996, creating a miniboom in information
technology-based services. Private activity now accounts for 82% of
GDP. In 2003, GDP will probably again grow at about 5%. On the
negative side, Senegal faces deep-seated urban problems of chronic
unemployment, trade union militancy, juvenile delinquency, and drug
addiction.

Serbia and Montenegro
MILOSEVIC-era mismanagement of the economy, an
extended period of economic sanctions, and the damage to
Yugoslavia's infrastructure and industry during the war in Kosovo
have left the economy only half the size it was in 1990. Since the
ousting of former Federal Yugoslav President MILOSEVIC in October
2000, the Democratic Opposition of Serbia (DOS) coalition government
has implemented stabilization measures and embarked on an aggressive
market reform program. After renewing its membership in the IMF in
December 2000, Yugoslavia continued to reintegrate into the
international community by rejoining the World Bank (IBRD) and the
European Bank for Reconstruction and Development (EBRD). A World
Bank-European Commission sponsored Donors' Conference held in June
2001 raised $1.3 billion for economic restructuring. An agreement
rescheduling the country's $4.5 billion Paris Club government debts
was concluded in November 2001; it will write off 66% of the debt; a
similar debt relief agreement on its $2.8 billion London Club
commercial debt is still pending. The smaller republic of Montenegro
severed its economy from federal control and from Serbia during the
MILOSEVIC era and continues to maintain its own central bank, uses
the euro instead of the Yugoslav dinar as official currency,
collects customs tariffs, and manages its own budget. Kosovo, while
technically still part of the Federal Republic of Yugoslavia (now
Serbia and Montenegro) according to United Nations Security Council
Resolution 1244, is moving toward local autonomy under United
Nations Interim Administration Mission in Kosovo (UNMIK) and is
dependent on the international community for financial and technical
assistance. The euro and the Yugoslav dinar are official currencies,
and UNMIK collects taxes and manages the budget. The complexity of
Serbia and Montenegro political relationships, slow progress in
privatization, and stagnation in the European economy are holding
back the economy. Arrangements with the IMF, especially requirements
for fiscal discipline, are an important element in policy formation.
Severe unemployment remains a key political economic problem.

Seychelles
Since independence in 1976, per capita output in this
Indian Ocean archipelago has expanded to roughly seven times the old
near-subsistence level. Growth has been led by the tourist sector,
which employs about 30% of the labor force and provides more than
70% of hard currency earnings, and by tuna fishing. In recent years
the government has encouraged foreign investment in order to upgrade
hotels and other services. At the same time, the government has
moved to reduce the dependence on tourism by promoting the
development of farming, fishing, and small-scale manufacturing. A
sharp drop illustrated the vulnerability of the tourist sector in
1991-92 due largely to the Gulf war, and once again following the 11
September 2001 terrorist attacks on the US. Other issues facing the
government are the curbing of the budget deficit, including the
containment of social welfare costs, and further privatization of
public enterprises. Growth slowed in 1998-2002, due to sluggish
tourist and tuna sectors. Also, tight controls on exchange rates and
the scarcity of foreign exchange have impaired short-term economic
prospects. The black market value of the Seychelles rupee is half
the official exchange rate; without a devaluation of the currency
the tourist sector should remain sluggish as vacationers seek
cheaper destinations such as Comoros, Mauritius, and Madagascar.

Sierra Leone
Sierra Leone is an extremely poor African nation with
tremendous inequality in income distribution. It does have
substantial mineral, agricultural, and fishery resources. However,
the economic and social infrastructure is not well developed, and
serious social disorders continue to hamper economic development,
following a 11-year civil war. About two-thirds of the working-age
population engages in subsistence agriculture. Manufacturing
consists mainly of the processing of raw materials and of light
manufacturing for the domestic market. Plans continue to reopen
bauxite and rutile mines shut down during the conflict. The major
source of hard currency consists of the mining of diamonds. The fate
of the economy depends upon the maintenance of domestic peace and
the continued receipt of substantial aid from abroad, which is
essential to offset the severe trade imbalance and to supplement
government revenues.

Singapore
Singapore, a highly developed and successful free market
economy, enjoys a remarkably open and corruption-free environment,
stable prices, and one of the highest per capita GDPs in the world.
The economy depends heavily on exports, particularly in electronics
and manufacturing. It was hard hit in 2001-2002 by the global
recession and the slump in the technology sector. The government
hopes to establish a new growth path that will be less vulnerable to
the external business cycle than the current export-led model but is
unlikely to abandon efforts to establish Singapore as Southeast
Asia's financial and high-tech hub.

Slovakia
Slovakia has mastered much of the difficult transition from
a centrally planned economy to a modern market economy. The DZURINDA
government has made excellent progress in 2001-03 in macroeconomic
stabilization and structural reform. Major privatizations are nearly
complete, the banking sector is almost completely in foreign hands,
and foreign investment has picked up. Slovakia's economy exceeded
expectations in 2001-03, despite the general European slowdown.
Unemployment, at an unacceptable 15% in 2003, remains the economy's
Achilles heel. The government faces other strong challenges in 2004,
especially the cutting of budget and current account deficits, the
containment of inflation, and the strengthening of the health care
system.

Slovenia
Slovenia, with its historical ties to Western Europe,
enjoys a GDP per capita substantially higher than that of the other
transitioning economies of Central Europe. Privatization of the
economy proceeded at an accelerated pace in 2002-3, and the budget
deficit dropped from 3.0% of GDP in 2002 to 1.9% in 2003. Despite
the economic slowdown in Europe in 2001-03, Slovenia maintained 3%
growth. Structural reforms to improve the business environment allow
for greater foreign participation in Slovenia's economy and help to
lower unemployment. Further measures to curb inflation are also
needed. Corruption and the high degree of coordination between
government, business, and central bank policy are issues of concern
in the run-up to Slovenia's scheduled 1 May 2004 accession to the
European Union.