Navassa Island
Subsistence fishing and commercial trawling occur
within refuge waters.
Nepal
Nepal is among the poorest and least developed countries in
the world with almost one-third of its population living below the
poverty line. Agriculture is the mainstay of the economy, providing
a livelihood for three-fourths of the population and accounting for
38% of GDP. Industrial activity mainly involves the processing of
agricultural produce including jute, sugarcane, tobacco, and grain.
Security concerns relating to the Maoist conflict have led to a
decrease in tourism, a key source of foreign exchange. Nepal has
considerable scope for exploiting its potential in hydropower and
tourism, areas of recent foreign investment interest. Prospects for
foreign trade or investment in other sectors will remain poor,
however, because of the small size of the economy, its technological
backwardness, its remoteness, its landlocked geographic location,
its civil strife, and its susceptibility to natural disaster.
Netherlands
The Netherlands has a prosperous and open economy, which
depends heavily on foreign trade. The economy is noted for stable
industrial relations, moderate unemployment and inflation, a sizable
current account surplus, and an important role as a European
transportation hub. Industrial activity is predominantly in food
processing, chemicals, petroleum refining, and electrical machinery.
A highly mechanized agricultural sector employs no more than 2% of
the labor force but provides large surpluses for the food-processing
industry and for exports. The Netherlands, along with 11 of its EU
partners, began circulating the euro currency on 1 January 2002. The
country continues to be one of the leading European nations for
attracting foreign direct investment. Economic growth slowed
considerably in 2001-05, as part of the global economic slowdown,
but for the four years before that, annual growth averaged nearly
4%, well above the EU average.
Netherlands Antilles
Tourism, petroleum refining, and offshore
finance are the mainstays of this small economy, which is closely
tied to the outside world. Although GDP has declined or grown
slightly in each of the past eight years, the islands enjoy a high
per capita income and a well-developed infrastructure compared with
other countries in the region. Almost all consumer and capital goods
are imported, the US and Mexico being the major suppliers. Poor
soils and inadequate water supplies hamper the development of
agriculture. Budgetary problems hamper reform of the health and
pension systems of an aging population.
New Caledonia
New Caledonia has about 25% of the world's known
nickel resources. Only a small amount of the land is suitable for
cultivation, and food accounts for about 20% of imports. In addition
to nickel, substantial financial support from France - equal to more
than one-fourth of GDP - and tourism are keys to the health of the
economy. Substantial new investment in the nickel industry, combined
with the recovery of global nickel prices, brightens the economic
outlook for the next several years.
New Zealand
Over the past 20 years the government has transformed
New Zealand from an agrarian economy dependent on concessionary
British market access to a more industrialized, free market economy
that can compete globally. This dynamic growth has boosted real
incomes (but left behind many at the bottom of the ladder),
broadened and deepened the technological capabilities of the
industrial sector, and contained inflationary pressures. Per capita
income has risen for six consecutive years and was more than $24,000
in 2005 in purchasing power parity terms. New Zealand is heavily
dependent on trade - particularly in agricultural products - to
drive growth. Exports are equal to about 22% of GDP. Thus far the
economy has been resilient, and the Labor Government promises that
expenditures on health, education, and pensions will increase
proportionately to output.
Nicaragua
Nicaragua, one of the Western Hemisphere's poorest
countries, has low per capita income, widespread underemployment,
and a heavy external debt burden. Distribution of income is one of
the most unequal on the globe. While the country has progressed
toward macroeconomic stability in the past few years, GDP annual
growth has been far too low to meet the country's needs, forcing the
country to rely on international economic assistance to meet fiscal
and debt financing obligations. Nicaragua qualified in early 2004
for some $4.5 billion in foreign debt reduction under the Heavily
Indebted Poor Countries (HIPC) initiative because of its earlier
successful performances under its International Monetary Fund policy
program and other efforts. In October 2005, Nicaragua ratified the
US-Central America Free Trade Agreement (CAFTA), which will provide
an opportunity for Nicaragua to attract investment, create jobs, and
deepen economic development. High oil prices helped drive inflation
to 9.6% in 2005, leading to a fall in real GDP growth to 4% from
over 5% in 2004.
Niger
Niger is one of the poorest countries in the world, ranking
last on the United Nations Development Fund index of human
development. It is a landlocked, Sub-Saharan nation, whose economy
centers on subsistence crops, livestock, and some of the world's
largest uranium deposits. Drought cycles, desertification, a 2.9%
population growth rate, and the drop in world demand for uranium
have undercut the economy. Niger shares a common currency, the CFA
franc, and a common central bank, the Central Bank of West African
States (BCEAO), with seven other members of the West African
Monetary Union. In December 2000, Niger qualified for enhanced debt
relief under the International Monetary Fund program for Highly
Indebted Poor Countries (HIPC) and concluded an agreement with the
Fund on a Poverty Reduction and Growth Facility (PRGF). Debt relief
provided under the enhanced HIPC initiative significantly reduces
Niger's annual debt service obligations, freeing funds for
expenditures on basic health care, primary education, HIV/AIDS
prevention, rural infrastructure, and other programs geared at
poverty reduction. In December 2005, it was announced that Niger had
received 100% multilateral debt relief from the IMF, which
translates into the forgiveness of approximately $86 million USD in
debts to the IMF, excluding the remaining assistance under HIPC.
Nearly half of the government's budget is derived from foreign donor
resources. Future growth may be sustained by exploitation of oil,
gold, coal, and other mineral resources. Uranium prices have
recovered somewhat in the last few years. A drought and locust
infestation in 2005 led to food shortages for as many as 2.5 million
Nigerians.
Nigeria
Oil-rich Nigeria, long hobbled by political instability,
corruption, inadequate infrastructure, and poor macroeconomic
management, is undertaking some reforms under a new reform-minded
administration. Nigeria's former military rulers failed to diversify
the economy away from its overdependence on the capital-intensive
oil sector, which provides 20% of GDP, 95% of foreign exchange
earnings, and about 65% of budgetary revenues. The largely
subsistence agricultural sector has failed to keep up with rapid
population growth - Nigeria is Africa's most populous country - and
the country, once a large net exporter of food, now must import
food. Following the signing of an IMF stand-by agreement in August
2000, Nigeria received a debt-restructuring deal from the Paris Club
and a $1 billion credit from the IMF, both contingent on economic
reforms. Nigeria pulled out of its IMF program in April 2002, after
failing to meet spending and exchange rate targets, making it
ineligible for additional debt forgiveness from the Paris Club. In
the last year the government has begun showing the political will to
implement the market-oriented reforms urged by the IMF, such as to
modernize the banking system, to curb inflation by blocking
excessive wage demands, and to resolve regional disputes over the
distribution of earnings from the oil industry. In 2003, the
government began deregulating fuel prices, announced the
privatization of the country's four oil refineries, and instituted
the National Economic Empowerment Development Strategy, a
domestically designed and run program modeled on the IMF's Poverty
Reduction and Growth Facility for fiscal and monetary management.
GDP rose strongly in 2005, based largely on increased oil exports
and high global crude prices. In November 2005, Abuja won Paris Club
approval for a historic debt-relief deal that by March 2006 should
eliminate $30 billion worth of Nigeria's total $37 billion external
debt. The deal first requires that Nigeria repay roughly $12 billion
in arrears to its bilateral creditors. Nigeria would then be allowed
to buy back its remaining debt stock at a discount. The deal also
commits Nigeria to more intensified IMF reviews.
Niue
The economy suffers from the typical Pacific island problems of
geographic isolation, few resources, and a small population.
Government expenditures regularly exceed revenues, and the shortfall
is made up by critically needed grants from New Zealand that are
used to pay wages to public employees. Niue has cut government
expenditures by reducing the public service by almost half. The
agricultural sector consists mainly of subsistence gardening,
although some cash crops are grown for export. Industry consists
primarily of small factories to process passion fruit, lime oil,
honey, and coconut cream. The sale of postage stamps to foreign
collectors is an important source of revenue. The island in recent
years has suffered a serious loss of population because of
emigration to New Zealand. Efforts to increase GDP include the
promotion of tourism and a financial services industry, although the
International Banking Repeal Act of 2002 resulted in the termination
of all offshore banking licenses. Economic aid from New Zealand in
2002 was about US$2 million. Niue suffered a devastating typhoon in
January 2004, which decimated nascent economic programs. While in
the process of rebuilding, Niue has been dependent on foreign aid.