The 2006 CIA World Factbook

by United States. Central Intelligence Agency

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, robust business
and consumer confidence, and rising exports of raw materials and
agricultural products are fueling the economy. 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
from $8 billion in 2002, to $18 billion in 2003, $13 billion in
2004, and nearly $17 billion in 2005. Housing prices probably peaked
in 2005, diminishing the prospect that interest rates would be
raised to prevent a speculative bubble. Conservative fiscal policies
have kept Australia's budget in surplus from 2002 to 2005.

Austria
Austria, with its well-developed market economy and high
standard of living, is closely tied to other EU economies,
especially Germany's. The Austrian economy also benefits greatly
from strong commercial relations, especially in the banking and
insurance sectors, with central, eastern, and southeastern Europe.
The economy features a large service sector, a sound industrial
sector, and a small, but highly developed agricultural sector.
Membership in the EU has drawn an influx of foreign investors
attracted by Austria's access to the single European market and
proximity to the new EU economies. The current government has
successfully pursued a comprehensive economic reform program, aimed
at streamlining government, creating a more competitive business
environment, further strengthening Austria's attractiveness as an
investment location, pursuing a balanced budget, and implementing
effective pension reforms. Weak domestic consumption and slow growth
in Europe have held the economy to growth rates of 0.4% in 2002,
1.4% in 2003, 2.4% in 2004, and 1.8% in 2005. To meet increased
competition from both EU and Central European countries,
particularly the new EU members, Austria will need to continue
restructuring, emphasizing knowledge-based sectors of the economy,
and encouraging greater labor flexibility and greater labor
participation 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. A consortium of Western oil
companies is scheduled to begin pumping 1 million barrels a day from
a large offshore field in early 2006, through a $4 billion pipeline
it built from Baku to Turkey's Mediterranean port of Ceyhan.
Economists estimate that by 2010 revenues from this project will
double the country's current GDP. 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. Several other
obstacles impede Azerbaijan's economic progress: the need for
stepped up foreign investment in the non-energy sector, the
continuing conflict with Armenia over the Nagorno-Karabakh region,
and the pervasive corruption. 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
together with tourism-driven construction and manufacturing accounts
for approximately 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. The current government has presided over a
period of economic recovery and an upturn in large-scale private
sector investments in tourism. 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.

Bahrain
Petroleum production and refining account for about 60% of
Bahrain's 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. A large share of exports consists 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. In 2005 Bahrain and the US
ratified a Free Trade Agreement (FTA), the first FTA between the US
and a Gulf state.

Baker Island
no economic activity

Bangladesh
Despite sustained domestic and international efforts to
improve economic and demographic prospects, Bangladesh remains a
poor, overpopulated, and inefficiently-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. 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 was positive
in 2005, as economic conditions in the US and Europe moderately
improved.

Bassas da India
no economic activity

Belarus
Belarus's economy in 2005 posted 8% growth. The government
has succeeded in lowering inflation over the past several years.
Trade with Russia - by far its largest single trade partner -
decreased in 2005, largely as a result of a change in the way the
Value Added Tax (VAT) on trade was collected. Trade with European
countries increased. Belarus has seen little structural reform since
1995, when President LUKASHENKO launched the country on the path of
"market socialism." In keeping with this policy, LUKASHENKO
reimposed administrative controls over prices and currency exchange
rates and expanded the state's right to intervene in the management
of private enterprises. During 2005, the government re-nationalized
a number of private companies. In addition, businesses have been
subject to pressure by central and local governments, e.g.,
arbitrary changes in regulations, numerous rigorous inspections,
retroactive application of new business regulations, and arrests of
"disruptive" businessmen and factory owners. A wide range of
redistributive policies has helped those at the bottom of the
ladder; the Gini coefficient is among the lowest in the world.
Because of these restrictive economic policies, Belarus has had
trouble attracting foreign investment, which remains low. Growth has
been strong in recent years, despite the roadblocks in a tough,
centrally directed economy with a high, but decreasing, rate of
inflation. Belarus continues to receive heavily discounted oil and
natural gas from Russia. Much of Belarus' growth can be attributed
to the re-export of Russian oil at market prices.