The 2008 CIA World Factbook, United States. Central Intelligence Agency [primary phonics books .TXT] 📗
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level of economic activity, high unemployment, and a heavy
dependence on foreign grants and technical assistance. Agriculture,
including fishing, hunting, and forestry, contributes 40% to GDP,
employs 80% of the labor force, and provides most of the exports.
The country is not self-sufficient in food production; rice, the
main staple, accounts for the bulk of imports. The government -
which is hampered by internal political disputes - is struggling to
upgrade education and technical training, privatize commercial and
industrial enterprises, improve health services, diversify exports,
promote tourism, and reduce the high population growth rate. The
political problems caused the economy to contract in 2007.
Remittances from 150,000 Comorans abroad help supplement GDP.
Congo, Democratic Republic of the
The economy of the Democratic
Republic of the Congo - a nation endowed with vast potential wealth
- is slowly recovering from two decades of decline. Conflict, which
began in August 1998, dramatically reduced national output and
government revenue, increased external debt, and resulted in the
deaths of more than 3.5 million people from violence, famine, and
disease. Foreign businesses curtailed operations due to uncertainty
about the outcome of the conflict, lack of infrastructure, and the
difficult operating environment. Conditions began to improve in late
2002 with the withdrawal of a large portion of the invading foreign
troops. The transitional government reopened relations with
international financial institutions and international donors, and
President KABILA has begun implementing reforms, although progress
is slow and the International Monetary Fund curtailed their program
for the DRC at the end of March 2006 because of fiscal overruns.
Much economic activity still occurs in the informal sector, and is
not reflected in GDP data. Renewed activity in the mining sector,
the source of most export income, boosted Kinshasa's fiscal position
and GDP growth. Government reforms and improved security may lead to
increased government revenues, outside budget assistance, and
foreign direct investment, although an uncertain legal framework,
corruption, and a lack of transparency in government policy are
continuing long-term problems.
Congo, Republic of the
The economy is a mixture of subsistence
agriculture, an industrial sector based largely on oil, and support
services, and a government characterized by budget problems and
overstaffing. Oil has supplanted forestry as the mainstay of the
economy, providing a major share of government revenues and exports.
In the early 1980s, rapidly rising oil revenues enabled the
government to finance large-scale development projects with GDP
growth averaging 5% annually, one of the highest rates in Africa.
The government has mortgaged a substantial portion of its oil
earnings through oil-backed loans that have contributed to a growing
debt burden and chronic revenue shortfalls. Economic reform efforts
have been undertaken with the support of international
organizations, notably the World Bank and the IMF. However, the
reform program came to a halt in June 1997 when civil war erupted.
Denis SASSOU-NGUESSO, who returned to power when the war ended in
October 1997, publicly expressed interest in moving forward on
economic reforms and privatization and in renewing cooperation with
international financial institutions. Economic progress was badly
hurt by slumping oil prices and the resumption of armed conflict in
December 1998, which worsened the republic's budget deficit. The
current administration presides over an uneasy internal peace and
faces difficult economic challenges of stimulating recovery and
reducing poverty. Recovery of oil prices has boosted the economy's
GDP and near-term prospects. In March 2006, the World Bank and the
International Monetary Fund (IMF) approved Heavily Indebted Poor
Countries (HIPC) treatment for Congo.
Cook Islands
Like many other South Pacific island nations, the Cook
Islands' economic development is hindered by the isolation of the
country from foreign markets, the limited size of domestic markets,
lack of natural resources, periodic devastation from natural
disasters, and inadequate infrastructure. Agriculture, employing
about one-third of the working population, provides the economic
base with major exports made up of copra and citrus fruit. Black
pearls are the Cook Islands' leading export. Manufacturing
activities are limited to fruit processing, clothing, and
handicrafts. Trade deficits are offset by remittances from emigrants
and by foreign aid, overwhelmingly from New Zealand. In the 1980s
and 1990s, the country lived beyond its means, maintaining a bloated
public service and accumulating a large foreign debt. Subsequent
reforms, including the sale of state assets, the strengthening of
economic management, the encouragement of tourism, and a debt
restructuring agreement, have rekindled investment and growth.
Coral Sea Islands
no economic activity
Costa Rica
Costa Rica's basically stable economy depends on tourism,
agriculture, and electronics exports. Poverty has remained around
20% for nearly 20 years, and the strong social safety net that had
been put into place by the government has eroded due to increased
financial constraints on government expenditures. Immigration from
Nicaragua has increasingly become a concern for the government. The
estimated 300,000-500,000 Nicaraguans estimated to be in Costa Rica
legally and illegally are an important source of (mostly unskilled)
labor, but also place heavy demands on the social welfare system.
Foreign investors remain attracted by the country's political
stability and high education levels, as well as the fiscal
incentives offered in the free-trade zones. Exports have become more
diversified in the past 10 years due to the growth of the high-tech
manufacturing sector, which is dominated by the microprocessor
industry. Tourism continues to bring in foreign exchange, as Costa
Rica's impressive biodiversity makes it a key destination for
ecotourism. The government continues to grapple with its large
internal and external deficits and sizable internal debt. Reducing
inflation remains a difficult problem because of rising import
prices, labor market rigidities, and fiscal deficits. Tax and public
expenditure reforms will be necessary to close the budget gap. In
October 2007, a national referendum voted in favor of the US-Central
American Free Trade Agreement (CAFTA).
Cote d'Ivoire
Cote d'Ivoire is the world's largest producer and
exporter of cocoa beans and a significant producer and exporter of
coffee and palm oil. Consequently, the economy is highly sensitive
to fluctuations in international prices for these products, and, to
a lesser extent, in climatic conditions. Despite government attempts
to diversify the economy, it is still heavily dependent on
agriculture and related activities, engaging roughly 68% of the
population. Since 2006, oil and gas production have become more
important engines of economic activity than cocoa. According to IMF
statistics, earnings from oil and refined products were $1.3 billion
in 2006, while cocoa-related revenues were $1 billion during the
same period. Cote d'Ivoire's offshore oil and gas production has
resulted in substantial crude oil exports and provides sufficient
natural gas to fuel electricity exports to Ghana, Togo, Benin, Mali
and Burkina Faso. Oil exploration by a number of consortiums of
private companies continues offshore, and President GBAGBO has
expressed hope that daily crude output could reach 200,000 barrels
per day (b/d) by the end of the decade. Since the end of the civil
war in 2003, political turmoil has continued to damage the economy,
resulting in the loss of foreign investment and slow economic
growth. GDP grew by 1.8% in 2006 and 1.7% in 2007. Per capita income
has declined by 15% since 1999.
Croatia
Once one of the wealthiest of the Yugoslav republics,
Croatia's economy suffered badly during the 1991-95 war as output
collapsed and the country missed the early waves of investment in
Central and Eastern Europe that followed the fall of the Berlin
Wall. Since 2000, however, Croatia's economic fortunes have begun to
improve slowly, with moderate but steady GDP growth between 4% and
6% led by a rebound in tourism and credit-driven consumer spending.
Inflation over the same period has remained tame and the currency,
the kuna, stable. Nevertheless, difficult problems still remain,
including a stubbornly high unemployment rate, a growing trade
deficit and uneven regional development. The state retains a large
role in the economy, as privatization efforts often meet stiff
public and political resistance. While macroeconomic stabilization
has largely been achieved, structural reforms lag because of deep
resistance on the part of the public and lack of strong support from
politicians. The EU accession process should accelerate fiscal and
structural reform.
Cuba
The government continues to balance the need for economic
loosening against a desire for firm political control. It has rolled
back limited reforms undertaken in the 1990s to increase enterprise
efficiency and alleviate serious shortages of food, consumer goods,
and services. The average Cuban's standard of living remains at a
lower level than before the downturn of the 1990s, which was caused
by the loss of Soviet aid and domestic inefficiencies. Since late
2000, Venezuela has been providing oil on preferential terms, and it
currently supplies about 100,000 barrels per day of petroleum
products. Cuba has been paying for the oil, in part, with the
services of Cuban personnel in Venezuela, including some 20,000
medical professionals. In 2007, high metals prices continued to
boost Cuban earnings from nickel and cobalt production. Havana
continued to invest in the country's energy sector to mitigate
electrical blackouts that had plagued the country since 2004.
Cyprus
The area of the Republic of Cyprus under government control
has a market economy dominated by the service sector, which accounts
for 78% of GDP. Tourism, financial services, and real estate are the
most important sectors. Erratic growth rates over the past decade
reflect the economy's reliance on tourism, which often fluctuates
with political instability in the region and economic conditions in
Western Europe. Nevertheless, the economy in the area under
government control grew by an average of 3.6% per year during the
period of 2000-06, well above the EU average. Cyprus joined the
European Exchange Rate Mechanism (ERM2) in May 2005 and adopted the
euro as its national currency on 1 January 2008. An aggressive
austerity program in the preceding years, aimed at paving the way
for the euro, helped turn a soaring fiscal deficit (6.3% in 2003)
into a surplus of 1.5% in 2007. As in the area administered by
Turkish Cypriots, water shortages are a perennial problem; a few
desalination plants are now on line. After 10 years of drought, the
country received substantial rainfall from 2001-04 alleviating
immediate concerns. Rainfall in 2005 and 2006, however, was well
below average, making water rationing a necessity in 2007.
Czech Republic
The Czech Republic is one of the most stable and
prosperous of the post-Communist states of Central and Eastern
Europe. Growth in 2000-07 was supported by exports to the EU,
primarily to Germany, and a strong recovery of foreign and domestic
investment. Domestic demand is playing an ever more important role
in underpinning growth as the availability of credit cards and
mortgages increases. The current account deficit has declined to
around 3.3% of GDP as demand for automotive and other products from
the Czech Republic remains strong in the European Union. Rising
inflation from higher food and energy prices are a risk to balanced
economic growth. Significant increases in social spending in the
run-up to June 2006 elections prevented, the government from meeting
its goal of reducing its budget deficit to 3% of GDP in 2007.
Negotiations on pension and additional healthcare reforms are
continuing without clear prospects for agreement and implementation.
Intensified restructuring among large enterprises, improvements in
the financial sector, and effective use of available EU funds should
strengthen output growth. The pro-business Civic Democratic
Party-led government approved reforms in 2007 designed to cut
spending on some social welfare benefits and reform the tax system
with the aim of eventually reducing the budget deficit to 2.3% of
GDP by 2010. Parliamentary approval for any additional reforms could
prove difficult, however, because of the parliament's even split.
The government withdrew a 2010 target date for euro adoption and
instead aims to meet the eurozone criteria around 2012.
Denmark
The Danish economy has in recent years undergone strong
expansion fueled primarily by private consumption growth, but also
supported by exports and investments. This thoroughly modern market
economy features high-tech agriculture, up-to-date small-scale and
corporate industry, extensive government welfare measures,
comfortable living standards, a stable currency, and high dependence
on foreign trade. Unemployment is low and capacity constraints are
limiting growth potential. Denmark is a net exporter of food and
energy and enjoys a comfortable balance of payments surplus.
Government objectives include streamlining the bureaucracy and
further privatization of state assets. The government has been
successful in meeting, and even exceeding, the economic convergence
criteria for participating in the third phase (a common European
currency) of the European Economic and Monetary Union (EMU), but so
far Denmark has decided not to join 15 other EU members in the euro.
Nonetheless, the Danish krone remains pegged to the euro. Economic
growth gained momentum in 2004 and the upturn continued through
2007. The controversy over caricatures of the Prophet Muhammad
printed in a Danish newspaper in September 2005 led to boycotts of
some Danish exports to the Muslim world, especially exports of dairy
products, but the boycotts did not have a significant impact on the
overall Danish economy. Because of high GDP per capita, welfare
benefits, a low Gini index, and political stability, the Danish
living standards are among the highest in the world. A major
long-term issue will be the sharp decline in the ratio of workers to
retirees.
Dhekelia
Economic activity is limited to providing services to the
military and their families located in Dhekelia. All food and
manufactured goods must be imported.
Djibouti
The economy is
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