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 had
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.
Guatemala
Guatemala is the largest and most populous of the Central
American countries with a GDP per capita roughly one-half that of
Brazil, Argentina, and Chile. 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. The
1996 signing of peace accords, which ended 36 years of civil war,
removed a major obstacle to foreign investment, but widespread
political violence and corruption scandals continue to dampen
investor confidence. The distribution of income remains highly
unequal, with perhaps 75% of the population below the poverty line.
Other ongoing challenges include increasing government revenues,
negotiating further assistance from international donors, upgrading
both government and private financial operations, curtailing drug
trafficking, and narrowing the trade deficit.
Guernsey
Financial services - banking, fund management, insurance -
account for about 55% of total income in this tiny, prosperous
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 environment
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. Fighting along the Sierra
Leonean and Liberian borders, as well as refugee movements, have
caused major economic disruptions, aggravating a loss in investor
confidence. Foreign mining companies have reduced expatriate staff.
Panic buying has created food shortages and inflation and caused
riots in local markets. Guinea is not receiving multilateral aid.
The IMF and World Bank cut off most assistance in 2003. Growth rose
slightly in 2004, primarily due to increases in global demand and
commodity prices on world markets.
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. In December 2003, the World Bank, IMF, and UNDP
were forced to step in to provide emergency budgetary support in the
amount of $107 million for 2004, representing over 80% of the total
national budget. Government drift and indecision, however, have
resulted in continued low growth in 2004.
Guyana
The Guyanese economy 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. Growth then slowed in 2003
and came back gradually in 2004, buoyed largely by increased export
earnings. 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 from restructuring and partial privatization.
Haiti
In this poorest country in the Western Hemisphere, 80% of the
population lives in abject poverty, and natural disasters frequently
sweep the nation. Two-thirds of all Haitians depend on the
agriculture sector, which consists mainly of small-scale subsistence
farming. 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, 0.9% in 2002, grew 0.4% in 2003, and shrank by 3.5% in
2004. Suspended aid and loan disbursements totaled more than $500
million at the start of 2003. Haiti also suffers from rampant
inflation, a lack of investment, and a severe trade deficit. In
early 2005 Haiti paid its arrears to the World Bank, paving the way
to reengagement with the Bank. The resumption of aid flows from all
donors is alleviating but not ending the nation's bitter economic
problems. Civil strife in 2004 combined with extensive damage from
flooding in southern Haiti in May 2004 and Tropical Storm Jeanne in
northwestern Haiti in September 2004 further impoverished Haiti.
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 contribution from Roman Catholic
dioceses throughout the world (known as Peter's Pence); by the sale
of postage stamps, coins, medals, and tourist mementos; by fees for
admission to museums; and by 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.