Thailand
Thailand has a well developed infrastructure, a
free-enterprise economy, and welcomes foreign investment. Thailand
has fully recovered from the 1997-98 Asian Financial Crisis and was
one of East Asia's best performers in 2002-04. Increased consumption
and investment spending and strong export growth pushed GDP growth
up to 6.9% in 2003 and 6.1% in 2004 despite a sluggish global
economy. The highly popular government's expansionist policy,
including major support of village economic development, has raised
concerns about fiscal discipline and the health of financial
institutions. Bangkok has pursued preferential trade agreements with
a variety of partners in an effort to boost exports and maintain
high growth, and in 2004 began negotiations on a Free Trade
Agreement with the US. In late December 2004, a major tsunami took
8,500 lives in Thailand and caused massive destruction of property
in the southern provinces of Krabi, Phangnga, and Phuket.
Togo
This small sub-Saharan economy is heavily dependent on both
commercial and subsistence agriculture, which provides employment
for 65% of the labor force. Some basic foodstuffs must still be
imported. Cocoa, coffee, and cotton generate about 40% of export
earnings, with cotton being the most important cash crop. Togo is
the world's fourth-largest producer of phosphate, but production
fell an estimated 22% in 2002 due to power shortages and the cost of
developing new deposits. The government's decade-long effort,
supported by the World Bank and the IMF, to implement economic
reform measures, encourage foreign investment, and bring revenues in
line with expenditures has moved slowly. Progress depends on
following through on privatization, increased openness in government
financial operations, progress toward legislative elections, and
continued support from foreign donors.
Tokelau
Tokelau's small size (three villages), isolation, and lack
of resources greatly restrain economic development and confine
agriculture to the subsistence level. The people rely heavily on aid
from New Zealand - about $4 million annually - to maintain public
services, with annual aid being substantially greater than GDP. The
principal sources of revenue come from sales of copra, postage
stamps, souvenir coins, and handicrafts. Money is also remitted to
families from relatives in New Zealand.
Tonga
Tonga, a small, open, South Pacific island economy, has a
narrow export base in agricultural goods. Squash, coconuts, bananas,
and vanilla beans are the main crops, and agricultural exports make
up two-thirds of total exports. The country must import a high
proportion of its food, mainly from New Zealand. Tourism is the
second largest source of hard currency earnings following
remittances. The country remains dependent on external aid and
remittances from Tongan communities overseas to offset its trade
deficit. The government is emphasizing the development of the
private sector, especially the encouragement of investment, and is
committing increased funds for health and education. Tonga has a
reasonably sound basic infrastructure and well-developed social
services. High unemployment among the young, a continuing upturn in
inflation, and rising civil service expenditures are major issues
facing the government.
Trinidad and Tobago
Trinidad and Tobago, the leading Caribbean
producer of oil and gas, has earned a reputation as an excellent
investment site for international businesses. Tourism is a growing
sector, although not proportionately as important as in many other
Caribbean islands. The economy benefits from low inflation and a
growing trade surplus. Prospects for growth in 2004 are good as
prices for oil, petrochemicals, and liquified natural gas are
expected to remain high, and foreign direct investment continues to
grow to support expanded capacity in the energy sector. The
government is coping with a rise in violent crime.
Tromelin Island
no economic activity
Tunisia
Tunisia has a diverse economy, with important agricultural,
mining, energy, tourism, and manufacturing sectors. Governmental
control of economic affairs while still heavy has gradually lessened
over the past decade with increasing privatization, simplification
of the tax structure, and a prudent approach to debt. Progressive
social policies also have helped raise living conditions in Tunisia
relative to the region. Real growth slowed to a 15-year low of 1.9%
in 2002 because of agricultural drought and lackluster tourism.
Better rains in 2003 and 2004, however, helped push GDP growth above
5% for these years. Tourism also recovered after the end of combat
operations in Iraq. Tunisia is gradually removing barriers to trade
with the European Union. Broader privatization, further
liberalization of the investment code to increase foreign
investment, improvements in government efficiency, and reduction of
the trade deficit are among the challenges ahead.
Turkey
Turkey's dynamic economy is a complex mix of modern industry
and commerce along with a traditional agriculture sector that in
2004 still accounted for more than 35% of employment. It has a
strong and rapidly growing private sector, yet the state still plays
a major role in basic industry, banking, transport, and
communication. The largest industrial sector is textiles and
clothing, which accounts for one-third of industrial employment; it
faces stiff competition in international markets with the end of the
global quota system. However, other sectors, notably the automotive
and electronics industries, are rising in importance within Turkey's
export mix. In recent years the economic situation has been marked
by erratic economic growth and serious imbalances. Real GNP growth
has exceeded 6% in many years, but this strong expansion has been
interrupted by sharp declines in output in 1994, 1999, and 2001.
Inflation, in recent years in the high double-digit range, fell to
9.3% by 2004 - a 30-year low. Despite these strong economic gains in
2002-04, which were largely due to renewed investor interest in
emerging markets, IMF backing, and tighter fiscal policy, the
economy is still plagued with high debt and deficits. The public
sector fiscal deficit exceeds 6% of GDP - due in large part to the
huge burden of interest payments, which accounted for more than 40%
of central government spending in 2004, and to populist spending.
Foreign direct investment (FDI) in Turkey remains low - averaging
less than $1 billion annually, but further economic and judicial
reforms and prospective EU membership are expected to boost FDI. A
major political and economic issue over the next decade is whether
or not Turkey will become a member of the EU.
Turkmenistan
Turkmenistan is largely desert country with intensive
agriculture in irrigated oases and large gas and oil resources.
One-half of its irrigated land is planted in cotton; formerly it was
the world's tenth-largest producer. Poor harvests in recent years
have led to a nearly 46% decline in cotton exports. With an
authoritarian ex-Communist regime in power and a tribally based
social structure, Turkmenistan has taken a cautious approach to
economic reform, hoping to use gas and cotton sales to sustain its
inefficient economy. Privatization goals remain limited. In
1998-2004, Turkmenistan suffered from the continued lack of adequate
export routes for natural gas and from obligations on extensive
short-term external debt. At the same time, however, total exports
rose by perhaps 30% in 2003 and 19% in 2004, largely because of
higher international oil and gas prices. Overall prospects in the
near future are discouraging because of widespread internal poverty,
the burden of foreign debt, the government's irrational use of oil
and gas revenues, and its unwillingness to adopt market-oriented
reforms. Turkmenistan's economic statistics are state secrets, and
GDP and other figures are subject to wide margins of error. In
particular, the rate of GDP growth is uncertain.
Turks and Caicos Islands
The Turks and Caicos economy is based on
tourism, fishing, and offshore financial services. Most capital
goods and food for domestic consumption are imported. The US is the
leading source of tourists, accounting for more than half of the
annual 93,000 visitors in the late 1990s. Major sources of
government revenue also include fees from offshore financial
activities and customs receipts.