Antarctica
Scientific undertakings rather than commercial pursuits
are the predominate human activity in Antarctica. Fishing off the
coast and tourism, both based abroad, account for Antarctica's
limited economic activity. Antarctic fisheries, targeting three main
species - Patagonian and Antarctic toothfish (Dissostichus
eleginoides and D. mawsoni), mackerel icefish (Champsocephalus
gunnari), and krill (Euphausia superba) - reported landing 141,147
metric tons in 2008-09 (1 July - 30 June). (Estimated fishing is
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 (also known as Chilean sea bass), is a
serious problem. The CCAMLR determines the recommended catch limits
for marine species. A total of 37,858 tourists visited the Antarctic
Treaty area in the 2008-09 Antarctic summer, down from the 46,265
visitors in 2007-2008 (estimates provided to the Antarctic Treaty by
the International Association of Antarctica Tour Operators (IAATO);
this does not include passengers on overflights). Nearly all of them
were passengers on commercial (nongovernmental) ships and several
yachts that make trips during the summer.
Antigua and Barbuda
Tourism continues to dominate Antigua and
Barbuda's economy, accounting for nearly 60% of GDP and 40% of
investment. 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 tourist arrivals from the US,
Canada, and Europe and potential damages from natural disasters.
After taking office in 2004, the SPENCER government adopted an
ambitious fiscal reform program, and was successful in reducing its
public debt-to-GDP ratio from 120% to about 90% in 2008. However,
the global financial crisis that began in 2008, has led to a
significant increase in the national debt, which topped 130% at the
end of 2010. The Antiguan economy experienced solid growth from 2003
to 2007, reaching over 12% in 2006 driven by a construction boom in
hotels and housing associated with the Cricket World Cup, but growth
dropped off in 2008 with the end of the boom. In 2009, Antigua's
economy was severely hit by the global economic crisis, suffering
from the collapse of its largest financial institution and a steep
decline in tourism. This decline continued in 2010 as the country
struggled with a yawning budget deficit.
Arctic Ocean
Economic activity is limited to the exploitation of
natural resources, including petroleum, natural gas, fish, and seals.
Argentina
Argentina benefits from rich natural resources, a highly
literate population, an export-oriented agricultural sector, and a
diversified industrial base. Although one of the world's wealthiest
countries 100 years ago, Argentina suffered during most of the 20th
century from recurring economic crises, persistent fiscal and
current account deficits, high inflation, mounting external debt,
and capital flight. A severe depression, growing public and external
indebtedness, and a bank run culminated in 2001 in the most serious
economic, social, and political crisis in the country's turbulent
history. Interim President Adolfo RODRIGUEZ SAA declared a default -
the largest in history - on the government's foreign debt in
December of that year, and abruptly resigned only a few days after
taking office. His successor, Eduardo DUHALDE, announced an end to
the peso's decade-long 1-to-1 peg to the US dollar in early 2002.
The economy bottomed out that year, with real GDP 18% smaller than
in 1998 and almost 60% of Argentines under the poverty line. Real
GDP rebounded to grow by an average 8.5% annually over the
subsequent six years, taking advantage of previously idled
industrial capacity and labor, an audacious debt restructuring and
reduced debt burden, excellent international financial conditions,
and expansionary monetary and fiscal policies. Inflation also
increased, however, during the administration of President Nestor
KIRCHNER, which responded with price restraints on businesses, as
well as export taxes and restraints, and beginning in early 2007,
with understating inflation data. Cristina FERNANDEZ DE KIRCHNER
succeeded her husband as President in late 2007, and the rapid
economic growth of previous years began to slow sharply the
following year as government policies held back exports and the
world economy fell into recession. The economy has rebounded from
the 2009 recession, but the government's continued reliance on
expansionary fiscal and monetary policies risks exacerbating already
high inflation, which remains under-reported by official statistics.
Armenia After several years of double-digit economic growth, Armenia faced a severe economic recession with GDP declining more than 14% in 2009, despite large loans from multilateral institutions. Sharp declines in the construction sector and workers' remittances, particularly from Russia, were the main reasons for the downturn. The economy began to recover in 2010 with nearly 5% growth. Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agroindustrial complexes of the Soviet era. Armenia has managed to reduce poverty, slash inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Since the breakup of the Soviet Union in 1991, Armenia had made progress in implementing some economic reforms, including privatization, price reforms, and prudent fiscal policies, but geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made Armenia particularly vulnerable to the sharp deterioration in the global economy and the economic downturn in Russia. The conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh contributed to a severe economic decline in the early 1990s and Armenia's borders with Turkey remain closed until 2010, when Turkey and Armenia signed an accord to reestablish diplomatic relations. Armenia is particularly dependent on Russian commercial and governmental support and most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector. The electricity distribution system was privatized in 2002 and bought by Russia's RAO-UES in 2005. Construction of a pipeline to deliver natural gas from Iran to Armenia was completed in December 2008, and gas deliveries are slated to expand due to the April 2010 completion of the Yerevan Thermal Power Plant. Armenia has some mineral deposits (copper, gold, bauxite). Pig iron, unwrought copper, and other nonferrous metals are Armenia's highest valued exports. Armenia's severe trade imbalance has been offset somewhat by international aid, remittances from Armenians working abroad, and foreign direct investment. Armenia joined the WTO in January 2003. The government made some improvements in tax and customs administration in recent years, but anti-corruption measures have been ineffective and the current economic downturn has led to a sharp drop in tax revenue and forced the government to accept large loan packages from Russia, the IMF, and other international financial institutions. Armenia will need to pursue additional economic reforms in order to regain economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from two of its nearest neighbors, Turkey and Azerbaijan.
Aruba
Tourism is the mainstay of the small open Aruban economy,
together with offshore banking. Oil refining and storage ended in
2009. The rapid growth of the tourism sector over the last decade
has resulted in a substantial expansion of other activities. Over
1.5 million tourists per year visit Aruba with 75% of those from the
US. Construction continues to boom with hotel capacity five times
the 1985 level. Tourist arrivals rebounded strongly following a dip
after the 11 September 2001 attacks. The government has made cutting
the budget and trade deficits a high priority.
Ashmore and Cartier Islands
no economic activity
Atlantic Ocean
The Atlantic Ocean provides some of the world's most
heavily trafficked sea routes, between and within the Eastern and
Western Hemispheres. Other economic activity includes the
exploitation of natural resources, e.g., fishing, dredging of
aragonite sands (The Bahamas), and production of crude oil and
natural gas (Caribbean Sea, Gulf of Mexico, and North Sea).
Australia
Australia's abundant and diverse natural resources attract
high levels of foreign investment and include extensive reserves of
coal, iron ore, copper, gold, natural gas, uranium, and renewable
energy sources. A series of major investments, such as the US$40
billion Gorgon Liquid Natural Gas project, will significantly expand
the resources sector. Australia also has a large services sector and
is a significant exporter of natural resources, energy, and food.
Key tenets of Australia's trade policy include support for open
trade and the successful culmination of the Doha Round of
multilateral trade negotiations, particularly for agriculture and
services. The Australian economy grew for 17 consecutive years
before the global financial crisis. Subsequently, the Rudd
government introduced a fiscal stimulus package worth over US$50
billion to offset the effect of the slowing world economy, while the
Reserve Bank of Australia cut interest rates to historic lows. These
policies - and continued demand for commodities, especially from
China - helped the Australian economy rebound after just one quarter
of negative growth. The economy grew by 1.2% during 2009 - the best
performance in the OECD. Unemployment, originally expected to reach
8-10%, peaked at 5.7% in late 2009 and fell to 5.1% in 2010. As a
result of an improved economy, the budget deficit is expected to
peak below 4.2% of GDP and the government could return to budget
surpluses as early as 2015. Australia was one of the first advanced
economies to raise interest rates, with seven rate hikes between
October 2009 and November 2010. The GILLARD government is focused on
raising Australia's economic productivity to ensure the
sustainability of growth, and continues to manage the symbiotic, but
sometimes tense, economic relationship with China. Australia is
engaged in the Trans-Pacific Partnership talks and ongoing free
trade agreement negotiations with China, Japan, and Korea.
Austria
Austria, with its well-developed market economy and high
standard of living, is closely tied to other EU economies,
especially Germany's. Its economy features a large service sector, a
sound industrial sector, and a small, but highly developed
agricultural sector. Following several years of solid foreign demand
for Austrian exports and record employment growth, the international
financial crisis and global economic downturn in 2008 led to a
recession that persisted until the third quarter of 2009. Austrian
GDP contracted 3.8% in 2009 but saw positive growth of about 2% in
2010. Unemployment has not risen as steeply in Austria as elsewhere
in Europe, partly because its government has subsidized reduced
working hour schemes to allow companies to retain employees. Such
stabilization measures, stimulus initiatives, and the government's
income tax reforms pushed the budget deficit to 3.5% of GDP in 2009
and about 5% in 2010, from only about 1.3% in 2008. The
international financial crisis caused difficulties for some of
Austria's largest banks whose extensive operations in central,
eastern, and southeastern Europe faced large losses. The government
provided bank support - including in some instances, nationalization
- to prevent insolvency and possible regional contagion. In the
medium-term all large Austrian banks will need additional capital.
Even after the global economic outlook improves, Austria will need
to continue restructuring, emphasizing knowledge-based sectors of
the economy, and encouraging greater labor flexibility and greater
labor participation to offset growing unemployment and Austria's
aging population and exceedingly low fertility rate.