Ashmore and Cartier Islands
no economic activity
Atlantic Ocean
The Atlantic Ocean provides some of the world's most
heavily trafficked sea routes, between and within the Eastern and
Western Hemispheres. Other economic activity includes the
exploitation of natural resources, e.g., fishing, the dredging of
aragonite sands (The Bahamas), and production of crude oil and
natural gas (Caribbean Sea, Gulf of Mexico, and North Sea).
Australia
Australia has an enviable Western-style capitalist
economy, with a per capita GDP on par with the four dominant West
European economies. Rising output in the domestic economy has been
offsetting the global slump, and business and consumer confidence
remains robust. Australia's emphasis on reforms, low inflation, and
growing ties with China are other key factors behind the economy's
strength. The impact of drought, weak foreign demand, and strong
import demand pushed the trade deficit up to $18 billion in 2003 and
to $20 billion in 2004 from $8 billion in 2002. One other concern is
the domestic housing bubble.
Austria
Austria, with its well-developed market economy and high
standard of living, is closely tied to other EU economies,
especially Germany's. Membership in the EU has drawn an influx of
foreign investors attracted by Austria's access to the single
European market and proximity to EU aspirant economies. Slow growth
in Germany and elsewhere in the world held the economy to 0.7%
growth in 2001, 1.4% in 2002, and again less than 1% in 2003.
However, recent data signal that the recovery has started. The
government estimates economic growth in 2004 of 1.7-2.1% and of 2.5%
in 2005. The government is planning a EURO 500 billion income tax
cut in 2004, though some economists doubt it will have stimulative
effects in 2004, because it will be offset by higher health
insurance contributions and higher taxes on energy. For 2005,
Austria plans a tax cut of EURO 2.5 billion and harmonization of the
various pension schemes. To meet increased competition from both EU
and Central European countries, particularly the new EU members,
Austria will need to emphasize knowledge-based sectors of the
economy, continue to deregulate the service sector, and lower its
tax burden. A key issue is the encouragement of much greater
participation in the labor market by its aging population.
Azerbaijan
Azerbaijan's number one export is oil. Azerbaijan's oil
production declined through 1997 but has registered an increase
every year since. Negotiation of production-sharing arrangements
(PSAs) with foreign firms, which have thus far committed $60 billion
to long-term oilfield development, should generate the funds needed
to spur future industrial development. Oil production under the
first of these PSAs, with the Azerbaijan International Operating
Company, began in November 1997. Azerbaijan shares all the
formidable problems of the former 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. One obstacle to
economic progress is the need for stepped up foreign investment in
the non-energy sector. A second obstacle is the continuing conflict
with Armenia over the Nagorno-Karabakh region. Trade with Russia and
the other former Soviet republics is declining in importance while
trade is building with Turkey and the nations of Europe. Long-term
prospects will depend on world oil prices, the location of new
pipelines in the region, and Azerbaijan's ability to manage its oil
wealth.
Bahamas, The
The Bahamas is a stable, developing nation with an
economy heavily dependent on tourism and offshore banking. Tourism
alone accounts for more than 60% of GDP and directly or indirectly
employs half of the archipelago's labor force. Steady growth in
tourism receipts and a boom in construction of new hotels, resorts,
and residences had led to solid GDP growth in recent years, but the
slowdown in the US economy and the attacks of 11 September 2001 held
back growth in these sectors in 2001-03. Financial services
constitute the second-most important sector of the Bahamian economy,
accounting for about 15% of GDP. However, since December 2000, when
the government enacted new regulations on the financial sector, many
international businesses have left The Bahamas. Manufacturing and
agriculture together contribute approximately a tenth of GDP and
show little growth, despite government incentives aimed at those
sectors. Overall growth prospects in the short run rest heavily on
the fortunes of the tourism sector, which depends on growth in the
US, the source of more than 80% of the visitors. In addition to
tourism and banking, the government supports the development of a
"third pillar," e-commerce.
Bahrain
In well-to-do Bahrain, petroleum production and refining
account for about 60% of export receipts, 60% of government
revenues, and 30% of GDP. With its highly developed communication
and transport facilities, Bahrain is home to numerous multinational
firms with business in the Gulf. Bahrain is dependent on Saudi
Arabia for oil granted as aid. A large share of exports consist of
petroleum products made from refining imported crude. Construction
proceeds on several major industrial projects. Unemployment,
especially among the young, and the depletion of oil and underground
water resources are major long-term economic problems.
Baker Island
no economic activity
Bangladesh
Despite sustained domestic and international efforts to
improve economic and demographic prospects, Bangladesh remains a
poor, overpopulated, and ill-governed nation. Although half of GDP
is generated through the service sector, nearly two-thirds of
Bangladeshis are employed in the agriculture sector, with rice as
the single-most-important product. Major impediments to growth
include frequent cyclones and floods, inefficient state-owned
enterprises, inadequate port facilities, a rapidly growing labor
force that cannot be absorbed by agriculture, delays in exploiting
energy resources (natural gas), insufficient power supplies, and
slow implementation of economic reforms. Economic reform is stalled
in many instances by political infighting and corruption at all
levels of government. Progress also has been blocked by opposition
from the bureaucracy, public sector unions, and other vested
interest groups. The BNP government, led by Prime Minister Khaleda
ZIA, has the parliamentary strength to push through needed reforms,
but the party's political will to do so has been lacking in key
areas. One encouraging note: growth has been a steady 5% for the
past several years.
Barbados
Historically, the Barbadian economy had been dependent on
sugarcane cultivation and related activities, but production in
recent years has diversified into light industry and tourism.
Offshore finance and information services are important foreign
exchange earners. The government continues its efforts to reduce
unemployment, to encourage direct foreign investment, and to
privatize remaining state-owned enterprises. The economy contracted
in 2002-03 mainly due to a decline in tourism. Growth should be
positive in 2004, the precise level largely dependent on economic
conditions in the US and Europe.