Gambia, The
The Gambia has no significant mineral or natural
resource deposits and has a limited agricultural base. About 75% of
the population depends on crops and livestock for its livelihood.
Small-scale manufacturing activity features the processing of
peanuts, fish, and hides. Reexport trade normally constitutes a
major segment of economic activity, but a 1999 government-imposed
preshipment inspection plan, and instability of the Gambian dalasi
(currency) have drawn some of the reexport trade away from The
Gambia. The government's 1998 seizure of the private peanut firm
Alimenta eliminated the largest purchaser of Gambian groundnuts; the
following two marketing seasons saw substantially lower prices and
sales. Despite an announced program to begin privatizing key
parastatals, no plans have been made public that would indicate that
the government intends to follow through on its promises.
Unemployment and underemployment rates remain extremely high;
short-run economic progress depends on sustained bilateral and
multilateral aid, on responsible government economic management, on
continued technical assistance from the IMF and bilateral donors,
and on expected growth in the construction sector.
Gaza Strip
High population density, limited land access, and strict
internal and external controls have kept economic conditions in the
Gaza Strip - the smaller of the two areas under the Palestinian
Authority - even more degraded than in the West Bank. An anticipated
Israeli withdrawal from the Gaza Strip in 2005 may offer some
medium-term opportunities for economic growth. The beginning of the
second intifadah in September 2000 sparked an economic downturn,
largely the result of Israeli closure policies; these policies,
which were imposed in response to security interests in Israel,
disrupted labor and commodity relationships with the Gaza Strip. In
2001, and even more severely in 2003, Israeli military measures in
Palestinian Authority areas resulted in the destruction of much
capital plant, the disruption of administrative structure, and
widespread business closures. Including the West Bank, the UN
estimates that more than 100,000 Palestinians out of the 125,000 who
used to work in Israel or in joint industrial zones have lost their
jobs. International aid of $2 billion to Gaza Strip and the West
Bank in 2004 prevented the complete collapse of the economy and
allowed some reforms in the government's financial operations.
Meanwhile unemployment has continued at half the labor force.
ARAFAT's death in 2004 leaves open more political options that could
affect the economy.
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 has suffered from
limited resources due to a chronic failure to collect tax revenues.
Georgia's new government is making progress in reforming the tax
code, enforcing taxes, and cracking down on corruption. Georgia also
suffers from energy shortages; it privatized the T'bilisi
electricity distribution network in 1998, but payment collection
rates remain low, both in T'bilisi and throughout the regions. The
country is pinning its hopes for long-term growth on its role as a
transit state for pipelines and trade. The construction on the
Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas
pipeline have brought much-needed investment and job opportunities.
Germany
Germany's affluent and technologically powerful economy -
the fifth largest in the world - has become one of the slowest
growing economies in the euro zone. A quick turnaround is not in the
offing in the foreseeable future. Growth in 2001-03 fell short of
1%, rising to 1.7% in 2004. The modernization and integration of the
eastern German economy continues to be a costly long-term process,
with annual transfers from west to east amounting to roughly $70
billion. Germany's aging 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. 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 34% 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. Priorities include tighter monetary and
fiscal policies, accelerated privatization, and improvement of
social services. Receipts from the gold sector helped sustain GDP
growth in 2004. Inflation should ease, but remain a major internal
problem.
Gibraltar
Self-sufficient 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 capitalist economy with the public sector
accounting for about 40% 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
annual GDP. The Greek economy grew by about 4.0% for the past two
years, largely because of an investment boom and infrastructure
upgrades for the 2004 Athens Olympic Games. Despite strong growth,
Greece has failed to meet the EU's Growth and Stability Pact budget
deficit criteria of 3% of GDP since 2000; public debt, inflation,
and unemployment are also above the eurozone average. Further
restructuring of the economy will need to include privatizing of
several state enterprises, undertaking pension and other reforms,
and minimizing bureaucratic inefficiencies.
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.