Qatar
Oil and gas account for more than 60% of GDP, roughly 85% of
export earnings, and 70% of government revenues. Oil and gas have
given Qatar a per capita GDP about 80% of that of the leading West
European industrial countries. Sustained high oil prices and
increased natural gas exports in recent years have helped build
Qatar's budget and trade surpluses and foreign reserves. Proved oil
reserves of more than 15 billion barrels should ensure continued
output at current levels for 23 years. Qatar's proved reserves of
natural gas exceed 25 trillion cubic meters, more than 5% of the
world total and third largest in the world. Qatar has permitted
substantial foreign investment in the development of its gas fields
during the last decade and is expected to become the world's top
liquefied natural gas (LNG) exporter in 2007. Qatar is also trying
to attract foreign investment in the development of its non-energy
projects by further liberalizing the economy. Qatar has become one
of the world's fastest growing and highest per-capita income
countries.
Romania
Romania began the transition from Communism in 1989 with a
largely obsolete industrial base and a pattern of output unsuited to
the country's needs. The country emerged in 2000 from a punishing
three-year recession thanks to strong demand in EU export markets.
Despite the global slowdown in 2001-02, strong domestic activity in
construction, agriculture, and consumption have kept GDP growth
above 4%. However, macroeconomic gains have only recently started to
spur creation of a middle class and address Romania's widespread
poverty, while corruption and red tape continue to handicap the
business environment. Romanian government confidence in continuing
disinflation was underscored by its currency revaluation in 2005,
making 10,000 "old" lei equal 1 "new" leu. The economy grew at 6.4%
in 2006, the strongest growth in the last decade. Romania joined the
European Union on 1 January 2007, and the IMF has praised the
country's recent reform efforts in preparation for EU accession.
Russia
Russia ended 2006 with its eighth straight year of growth,
averaging 6.7% annually since the financial crisis of 1998. Although
high oil prices and a relatively cheap ruble are important drivers
of this economic rebound, since 2000 investment and consumer-driven
demand have played a noticeably increasing role. Real fixed capital
investments have averaged gains greater than 10% over the last five
years, and real personal incomes have realized average increases
over 12%. During this time, poverty has declined steadily and the
middle class has continued to expand. Russia has also improved its
international financial position since the 1998 financial crisis.
Over the past several years, Russia has used its stabilization fund
based on oil taxes to prepay all Soviet-era sovereign debt to Paris
Club creditors and the IMF. Foreign debt has decreased to 39% of
GDP, mainly due to decreasing state debt, while commercial debt to
foreigners has risen strongly. Oil export earnings have allowed
Russia to increase its foreign reserves from $12 billion in 1999 to
some $315 billion at yearend 2006, the third largest reserves in the
world. These achievements, along with a renewed government effort to
advance structural reforms and fiscal restraint, have raised
business and investor confidence in Russia's economic prospects.
Russia's economy grew 6.6% in 2006 and inflation growth was below
10% for the first time in the past 10 years. Russia shows signs of
increasing its ties to the global economy, having signed a bilateral
market access agreement with the US as a prelude to possible WTO
entry. Nevertheless, serious problems persist. Oil, natural gas,
metals, and timber account for more than 80% of exports, leaving the
country vulnerable to swings in world commodity prices. Russia's
manufacturing base is dilapidated and must be replaced or modernized
if the country is to achieve broad-based economic growth. The
banking system, while growing at a high rate and increasing consumer
lending, is still small relative to the banking sectors of Russia's
emerging market peers. Domestic and foreign investor sentiment is
tempered by political uncertainties ahead of elections, corruption,
and widespread lack of trust in institutions. President PUTIN
continues to grant more influence to forces within his government
that desire to reassert state control over the economy. Government
spending has increased and risks becoming populist, most notably in
the form of the four "national projects" of agriculture, education,
housing, and medicine. Russia has made little progress in building
the rule of law, the bedrock of a modern market economy.
Rwanda
Rwanda is a poor rural country with about 90% of the
population engaged in (mainly subsistence) agriculture. It is the
most densely populated country in Africa and is landlocked with few
natural resources and minimal industry. Primary foreign exchange
earners are coffee and tea. The 1994 genocide decimated Rwanda's
fragile economic base, severely impoverished the population,
particularly women, and eroded the country's ability to attract
private and external investment. However, Rwanda has made
substantial progress in stabilizing and rehabilitating its economy
to pre-1994 levels, although poverty levels are higher now. GDP has
rebounded and inflation has been curbed. Despite Rwanda's fertile
ecosystem, food production often does not keep pace with population
growth, requiring food imports. Rwanda continues to receive
substantial aid money and obtained IMF-World Bank Heavily Indebted
Poor Country (HIPC) initiative debt relief in 2005. Kigali's high
defense expenditures have caused tension between the government and
international donors and lending agencies. Rwanda obtained debt
relief from the IMF and World Bank in 2006. Rwanda also received
Millennium Challenge Account Threshold status in 2006. Energy
shortages, instability in neighboring states, and lack of adequate
transportation linkages to other countries continue to handicap
growth.
Saint Helena
The economy depends largely on financial assistance
from the UK, which amounted to about $5 million in 1997 or almost
one-half of annual budgetary revenues. The local population earns
income from fishing, raising livestock, and sales of handicrafts.
Because there are few jobs, 25% of the work force has left to seek
employment on Ascension Island, on the Falklands, and in the UK.
Saint Kitts and Nevis
Sugar was the traditional mainstay of the
Saint Kitts economy until the 1970s. The government closed the sugar
industry following the 2005 harvest after decades of losses at the
state-run sugar company. To compensate, the government has embarked
on a program to diversify the agricultural sector and to stimulate
other sectors of the economy. Activities such as tourism,
export-oriented manufacturing, and offshore banking have assumed
larger roles in the economy. Tourism revenues are now the chief
source of the islands' foreign exchange; about 341,800 tourists
visited Nevis in 2005. Additional tourist facilities, including a
second cruise ship pier, hotels, and golf courses are under
construction.
Saint Lucia
Changes in the EU import preference regime and the
increased competition from Latin American bananas have made economic
diversification increasingly important in Saint Lucia. The island
nation has been able to attract foreign business and investment,
especially in its offshore banking and tourism industries. Tourism
is the main source of foreign exchange, with more than 700,000
arrivals in 2005. The manufacturing sector is the most diverse in
the Eastern Caribbean area, and the government is trying to
revitalize the banana industry. Economic fundamentals remain solid,
even though unemployment needs to be cut.
Saint Pierre and Miquelon
The inhabitants have traditionally earned
their livelihood by fishing and by servicing fishing fleets
operating off the coast of Newfoundland. The economy has been
declining, however, because of disputes with Canada over fishing
quotas and a steady decline in the number of ships stopping at Saint
Pierre. In 1992, an arbitration panel awarded the islands an
exclusive economic zone of 12,348 sq km to settle a longstanding
territorial dispute with Canada, although it represents only 25% of
what France had sought. The islands are heavily subsidized by France
to the great betterment of living standards. The government hopes an
expansion of tourism will boost economic prospects. Recent test
drilling for oil may pave the way for development of the energy
sector.
Saint Vincent and the Grenadines
Economic growth in this
lower-middle-income country hinges upon seasonal variations in the
agricultural and tourism sectors. Tropical storms wiped out
substantial portions of crops in 1994, 1995, and 2002, and tourism
in the Eastern Caribbean suffered low arrivals in the immediate
aftermath of 11 September 2001. The islands had more than 160,000
tourist arrivals in 2005, mostly to the Grenadines. Saint Vincent is
home to a small offshore banking sector and has moved to adopt
international regulatory standards. Saint Vincent is also a producer
of marijuana and is being used as a transshipment point for illegal
narcotics from South America.
Samoa
The economy of Samoa has traditionally been dependent on
development aid, family remittances from overseas, agriculture, and
fishing. The country is vulnerable to devastating storms.
Agriculture employs two-thirds of the labor force, and furnishes 90%
of exports, featuring coconut cream, coconut oil, and copra. The
fish catch declined during the El Nino of 2002-03, but returned to
normal by mid-2005. The manufacturing sector mainly processes
agricultural products. One factory in the Foreign Trade Zone employs
3,000 people to make automobile electrical harnesses for an assembly
plant in Australia. Tourism is an expanding sector, accounting for
25% of GDP; about 100,000 tourists visited the islands in 2005. The
Samoan Government has called for deregulation of the financial
sector, encouragement of investment, and continued fiscal
discipline, while at the same time protecting the environment.
Observers point to the flexibility of the labor market as a basic
strength for future economic advances. Foreign reserves are in a
relatively healthy state, the external debt is stable, and inflation
is low.