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. The country remains
dependent on external aid and remittances from Tongan communities
overseas to offset its trade deficit. Tourism is the second-largest
source of hard currency earnings following remittances. 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,
pressures for democratic reform, 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 a growing trade
surplus. Economic growth in 2006 reached 12.6% as prices for oil,
petrochemicals, and liquefied natural gas remained high, and foreign
direct investment continued 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.
Increased rain helped to push GDP growth to an average rate of 5% in
2003-06. However, a recession in agriculture, weak expansion in the
tourism and textile sectors, and increasing import costs due to
rising world energy prices cut growth to 4% in 2006. Tunisia is
gradually removing barriers to trade with the EU. 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 still
accounts 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.
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. The economy is turning around with the
implementation of economic reforms, and 2004 GDP growth reached 9%,
followed by roughly 5% annual growth in 2005-06. Inflation fell to
7.7% in 2005 - a 30-year low, but climbed back to 9.8% in 2006.
Despite the strong economic gains in 2002-06, which were largely due
to renewed investor interest in emerging markets, IMF backing, and
tighter fiscal policy, the economy is still burdened by a high
current account deficit and high debt. The public sector fiscal
deficit exceeds 6% of GDP - due in large part to high interest
payments, which accounted for about 37% of central government
spending in 2004. Prior to 2005, foreign direct investment (FDI) in
Turkey averaged less than $1 billion annually, but further economic
and judicial reforms and prospective EU membership are expected to
boost FDI. Privatization sales are currently approaching $21
billion. Oil began to flow through the Baku-Tblisi-Ceyhan pipeline
in May 2006, marking a major milestone that will bring up to 1
billion barrels per day from the Caspian to market.
Turkmenistan
Turkmenistan is a 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 an almost 50% 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
1998-2005, 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 an average of 15% per year in 2003-06, largely because of
higher international oil and gas prices. In 2006, Ashgabat raised
its natural gas export prices to its main customer, Russia, from $66
per thousand cubic meters (tcm) to $100 per tcm. Overall prospects
in the near future are discouraging because of widespread internal
poverty, a poor educational system, government misuse of oil and gas
revenues, and Ashgabat's 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, offshore financial services, and fishing. Most capital
goods and food for domestic consumption are imported. The US is the
leading source of tourists, accounting for more than three-quarters
of the 175,000 visitors that arrived in 2004. Major sources of
government revenue also include fees from offshore financial
activities and customs receipts.
Tuvalu
Tuvalu consists of a densely populated, scattered group of
nine coral atolls with poor soil. The country has no known mineral
resources and few exports. Subsistence farming and fishing are the
primary economic activities. Fewer than 1,000 tourists, on average,
visit Tuvalu annually. Government revenues largely come from the
sale of stamps and coins and remittances from seamen on merchant
ships abroad. About 1,000 Tuvaluans are being repatriated from
Nauru, with the decline of phosphate resources there. Substantial
income is received annually from an international trust fund
established in 1987 by Australia, NZ, and the UK and supported also
by Japan and South Korea. Thanks to wise investments and
conservative withdrawals, this fund has grown from an initial $17
million to over $35 million in 1999. The US Government is also a
major revenue source for Tuvalu because of payments from a 1988
treaty on fisheries. In an effort to reduce its dependence on
foreign aid, the government is pursuing public sector reforms,
including privatization of some government functions and personnel
cuts of up to 7%. Tuvalu derives around $1.5 million per year from
the lease of its ".tv" Internet domain name. With merchandise
exports only a fraction of merchandise imports, continued reliance
must be placed on fishing and telecommunications license fees,
remittances from overseas workers, official transfers, and income
from overseas investments.
Uganda
Uganda has substantial natural resources, including fertile
soils, regular rainfall, and sizable mineral deposits of copper and
cobalt. Agriculture is the most important sector of the economy,
employing over 80% of the work force. Coffee accounts for the bulk
of export revenues. Since 1986, the government - with the support of
foreign countries and international agencies - has acted to
rehabilitate and stabilize the economy by undertaking currency
reform, raising producer prices on export crops, increasing prices
of petroleum products, and improving civil service wages. The policy
changes are especially aimed at dampening inflation and boosting
production and export earnings. During 1990-2001, the economy turned
in a solid performance based on continued investment in the
rehabilitation of infrastructure, improved incentives for production
and exports, reduced inflation, gradually improved domestic
security, and the return of exiled Indian-Ugandan entrepreneurs. In
2000, Uganda qualified for enhanced Highly Indebted Poor Countries
(HIPC) debt relief worth $1.3 billion and Paris Club debt relief
worth $145 million. These amounts combined with the original HIPC
debt relief added up to about $2 billion. Growth for 2001-02 was
solid despite continued decline in the price of coffee, Uganda's
principal export. Growth in 2003-06 reflected an upturn in Uganda's
export markets.