Akrotiri
Economic activity is limited to providing services to the
military and their families located in Akrotiri. All food and
manufactured goods must be imported.
Albania
Lagging behind its Balkan neighbors, Albania is making the
difficult transition to a more modern open-market economy. The
government has taken measures to curb violent crime and reduce the
large grey economy. The economy is bolstered by annual remittances
from abroad of $600-$800 million, mostly from Albanians residing in
Greece and Italy; this helps offset the towering trade deficit.
Agriculture, which accounts for about one-quarter of GDP, is held
back because of lack of modern equipment, unclear property rights,
and the prevalence of small, inefficient plots of land. Energy
shortages and antiquated and inadequate infrastructure contribute to
Albania's poor business environment, which make it difficult to
attract and sustain foreign investment. The planned construction of
a new thermal power plant near Vlore and improved transmission and
distribution facilities eventually will help relieve the energy
shortages. Also, the government is moving slowly to improve the poor
national road and rail network, a long-standing barrier to sustained
economic growth. On the positive side: growth was strong in 2003-06
and inflation is low and stable.
Algeria
The hydrocarbons sector is the backbone of the economy,
accounting for roughly 60% of budget revenues, 30% of GDP, and over
95% of export earnings. Algeria has the seventh-largest reserves of
natural gas in the world and is the second-largest gas exporter; it
ranks 14th in oil reserves. Sustained high oil prices in recent
years, along with macroeconomic policy reforms supported by the IMF,
have helped improve Algeria's financial and macroeconomic
indicators. Algeria is running substantial trade surpluses and
building up record foreign exchange reserves. Algeria has decreased
its external debt to less than 10% of GDP after repaying its Paris
Club and London Club debt in 2006. Real GDP has risen due to higher
oil output and increased government spending. The government's
continued efforts to diversify the economy by attracting foreign and
domestic investment outside the energy sector, however, has had
little success in reducing high unemployment and improving living
standards. Structural reform within the economy, such as development
of the banking sector and the construction of infrastructure, moves
ahead slowly hampered by corruption and bureaucratic resistance.
American Samoa
American Samoa has a traditional Polynesian economy
in which more than 90% of the land is communally owned. Economic
activity is strongly linked to the US with which American Samoa
conducts most of its foreign trade. Tuna fishing and tuna processing
plants are the backbone of the private sector, with canned tuna the
primary export. Transfers from the US Government add substantially
to American Samoa's economic well being. Attempts by the government
to develop a larger and broader economy are restrained by Samoa's
remote location, its limited transportation, and its devastating
hurricanes. Tourism is a promising developing sector.
Andorra
Tourism, the mainstay of Andorra's tiny, well-to-do economy,
accounts for more than 80% of GDP. An estimated 11.6 million
tourists visit annually, attracted by Andorra's duty-free status and
by its summer and winter resorts. Andorra's comparative advantage
has recently eroded as the economies of neighboring France and Spain
have been opened up, providing broader availability of goods and
lower tariffs. The banking sector, with its partial "tax haven"
status, also contributes substantially to the economy. Agricultural
production is limited - only 2% of the land is arable - and most
food has to be imported. The principal livestock activity is sheep
raising. Manufacturing output consists mainly of cigarettes, cigars,
and furniture. Andorra is a member of the EU Customs Union and is
treated as an EU member for trade in manufactured goods (no tariffs)
and as a non-EU member for agricultural products.
Angola
Angola's high growth rate is driven by its oil sector, with
record oil prices and rising petroleum production. Oil production
and its supporting activities contribute about half of GDP and 90%
of exports. Increased oil production supported 12% growth in 2004,
19% growth in 2005, and nearly 17% growth in 2006. A postwar
reconstruction boom and resettlement of displaced persons has led to
high rates of growth in construction and agriculture as well. Much
of the country's infrastructure is still damaged or undeveloped from
the 27-year-long civil war. Remnants of the conflict such as
widespread land mines still mar the countryside even though an
apparently durable peace was established after the death of rebel
leader Jonas SAVIMBI in February 2002. Subsistence agriculture
provides the main livelihood for half of the population, but half of
the country's food must still be imported. In 2005, the government
started using a $2 billion line of credit from China to rebuild
Angola's public infrastructure, and several large-scale projects
were completed in 2006. The central bank in 2003 implemented an
exchange rate stabilization program using foreign exchange reserves
to buy kwanzas out of circulation, a policy that was more
sustainable in 2005 because of strong oil export earnings, and has
significantly reduced inflation. Consumer inflation declined from
325% in 2000 to about 13% in 2006, but the stabilization policy
places pressure on international net liquidity. To fully take
advantage of its rich national resources - gold, diamonds, extensive
forests, Atlantic fisheries, and large oil deposits - Angola will
need to continue reforming government policies and to reduce
corruption. The government has made little progress on reforms
recommended by the IMF such as promoting greater transparency in
government spending and continues to be without a formal monitoring
agreement with the institution. Corruption, especially in the
extractive sectors, is a major challenge facing Angola.
Anguilla
Anguilla has few natural resources, and the economy depends
heavily on luxury tourism, offshore banking, lobster fishing, and
remittances from emigrants. Increased activity in the tourism
industry, which has spurred the growth of the construction sector,
has contributed to economic growth. Anguillan officials have put
substantial effort into developing the offshore financial sector,
which is small, but growing. In the medium term, prospects for the
economy will depend largely on the tourism sector and, therefore, on
revived income growth in the industrialized nations as well as on
favorable weather conditions.
Antarctica
Fishing off the coast and tourism, both based abroad,
account for Antarctica's limited economic activity. Antarctic
fisheries in 2003-04 (1 July-30 June) reported landing 136,262
metric tons (estimated fishing from the area covered by the
Convention on the Conservation of Antarctic Marine Living Resources
(CCAMLR), which extends slightly beyond the Antarctic Treaty area).
Unregulated fishing, particularly of Patagonian toothfish, is a
serious problem. The CCAMLR determines the recommended catch limits
for marine species. A total of 23,175 tourists visited in the
2004-05 Antarctic summer, up from the 19,486 visitors the previous
year. Nearly all of them were passengers on commercial
(nongovernmental) ships and several yachts that make trips during
the summer. Most tourist trips last approximately two weeks.
Antigua and Barbuda
Tourism continues to dominate the economy,
accounting for more than half of GDP. Weak tourist arrival numbers
since early 2000 have slowed the economy and pressed the government
into a tight fiscal corner. The dual-island nation's agricultural
production is focused on the domestic market and constrained by a
limited water supply and a labor shortage stemming from the lure of
higher wages in tourism and construction. Manufacturing comprises
enclave-type assembly for export with major products being bedding,
handicrafts, and electronic components. Prospects for economic
growth in the medium term will continue to depend on income growth
in the industrialized world, especially in the US, which accounts
for slightly more than one-third of tourist arrivals.
Arctic Ocean
Economic activity is limited to the exploitation of
natural resources, including petroleum, natural gas, fish, and seals.