Trinidad and Tobago

Trinidad and Tobago has earned a reputation as

an excellent investment site for international businesses and has

one of the highest growth rates and per capita incomes in Latin

America. Economic growth between 2000 and 2007 averaged slightly

over 8%, significantly above the regional average of about 3.7% for

that same period; however, GDP has slowed down since then and

contracted about 3.5% in 2009, before rising more than 2% in 2010.

Growth has been fueled by investments in liquefied natural gas

(LNG), petrochemicals, and steel. Additional petrochemical,

aluminum, and plastics projects are in various stages of planning.

Trinidad and Tobago is the leading Caribbean producer of oil and

gas, and its economy is heavily dependent upon these resources but

it also supplies manufactured goods, notably food products and

beverages, as well as cement to the Caribbean region. Oil and gas

account for about 40% of GDP and 80% of exports, but only 5% of

employment. The country is also a regional financial center, and

tourism is a growing sector, although it is not as important

domestically as it is to many other Caribbean islands. The economy

benefits from a growing trade surplus. The previous MANNING

administration benefited from fiscal surpluses fueled by the dynamic

export sector; however, declines in oil and gas prices have reduced

government revenues which will challenge the new government's

commitment to maintaining high levels of public investment.

Tunisia

Tunisia has a diverse economy, with important agricultural,

mining, 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, which averaged almost 5% over

the past decade, declined to 4.6% in 2008 and to 3-4% in 2009-10

because of economic contraction and slowing of import demand in

Europe - Tunisia's largest export market. However, development of

non-textile manufacturing, a recovery in agricultural production,

and strong growth in the services sector somewhat mitigated the

economic effect of slowing exports. Tunisia will need to reach even

higher growth levels to create sufficient employment opportunities

for an already large number of unemployed as well as the growing

population of university graduates. The challenges ahead include:

privatizing industry, liberalizing the investment code to increase

foreign investment, improving government efficiency, reducing the

trade deficit, and reducing socioeconomic disparities in the

impoverished south and west.

Turkey

Turkey's economy is increasingly driven by its industry and

service sectors, although its traditional agriculture sector still

accounts for about 30% of employment. An aggressive privatization

program has reduced state involvement in basic industry, banking,

transport, and communication, and an emerging cadre of middle-class

entrepreneurs is adding a dynamism to the economy. Turkey's

traditional textiles and clothing clothing sectors still account for

one-third of industrial employment, despite stiff competition in

international markets that resulted from the end of the global quota

system. Other sectors, notably the automotive, construction, and

electronics industries, are rising in importance and have surpassed

textiles within Turkey's export mix. Oil began to flow through the

Baku-Tbilisi-Ceyhan pipeline in May 2006, marking a major milestone

that will bring up to 1 million barrels per day from the Caspian to

market. Several gas pipelines also are being planned to help move

Central Asian gas to Europe via Turkey, which will help address

Turkey's dependence on energy imports over the long term. After

Turkey experienced a severe financial crisis in 2001, Ankara adopted

financial and fiscal reforms as part of an IMF program. The reforms

strengthened the country's economic fundamentals and ushered in an

era of strong growth - averaging more than 6% annually until 2009,

when global economic conditions and tighter fiscal policy slowed

growth to 4.7%, reduced inflation to 6.5% - a 34-year low - and cut

the public sector debt-to-GPD ratio below 50%. Turkey's

well-regulated financial markets and banking system weathered the

global financial crisis and GDP rebounded strongly to 7.3% in 2010,

as exports returned to normal levels following the recession. The

economy, however, continues to be burdened by a high current account

deficit and remains dependent on often volatile, short-term

investment to finance its trade deficit. The stock value of FDI

stood at $174 billion at year-end 2010, but inflows have slowed

considerably in light of continuing economic turmoil in Europe, the

source of much of Turkey's FDI. Further economic and judicial

reforms and prospective EU membership are expected to boost Turkey's

attractiveness to foreign investors. However, Turkey's relatively

high current account deficit, uncertainty related to policy-making,

and fiscal imbalances leave the economy vulnerable to destabilizing

shifts in investor confidence.

Turkmenistan

Turkmenistan is largely a desert country with intensive

agriculture in irrigated oases and sizeable gas and oil resources.

The two largest crops are cotton, most of which is produced for

export, and wheat, which is domestically consumed. Although

agriculture accounts for roughly 10% of GDP, it continues to employ

nearly half of the country's workforce. 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 export revenues to sustain its

inefficient economy. Privatization goals remain limited. From

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 roughly 15% per year from 2003-08, largely

because of higher international oil and gas prices. New pipelines to

China and Iran, that began operation in late 2009 and early 2010,

have given Turkmenistan additional export routes for its gas,

although these new routes have not offset the sharp drop in export

revenue since early 2009 from decreased gas exports to Russia.

Overall prospects in the near future are discouraging because of

widespread internal poverty, endemic corruption, a poor educational

system, government misuse of oil and gas revenues, and Ashgabat's

reluctance to adopt market-oriented reforms. In the past,

Turkmenistan's economic statistics were state secrets. The new

government has established a State Agency for Statistics, but GDP

numbers and other figures are subject to wide margins of error. In

particular, the rate of GDP growth is uncertain. Since his election,

President BERDIMUHAMEDOW unified the country's dual currency

exchange rate, ordered the redenomination of the manat, reduced

state subsidies for gasoline, and initiated development of a special

tourism zone on the Caspian Sea. Although foreign investment is

encouraged, numerous bureaucratic obstacles impede international

business activity.

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 and is almost entirely dependent upon

imported food and fuel. Subsistence farming and fishing are the

primary economic activities. Fewer than 1,000 tourists, on average,

visit Tuvalu annually. Job opportunities are scarce and public

sector workers make up most of those employed. About 15% of the

adult male population work as seamen on merchant ships abroad, and

remittances are a vital source of income contributing around $2

million in 2007. Substantial income is received annually from the

Tuvalu Trust Fund (TTF) 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 grew from an initial $17 million to an

estimated value of $77 million in 2006. The TTF contributed nearly

$9 million towards the government budget in 2006 and is an important

cushion for meeting shortfalls in the government's budget. The US

Government is also a major revenue source for Tuvalu because of

payments from a 1988 treaty on fisheries. In an effort to ensure

financial stability and sustainability, the government is pursuing

public sector reforms, including privatization of some government

functions and personnel cuts. Tuvalu also derives royalties from the

lease of its ".tv" Internet domain name with revenue of more than $2

million in 2006. A minor source of government revenue comes from the

sale of stamps and coins. 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.

Growing income disparities and the vulnerability of the country to

climatic change are among leading concerns for the nation.

Uganda

Uganda has substantial natural resources, including fertile

soils, regular rainfall, small deposits of copper, gold, and other

minerals, and recently discovered oil. Uganda has never conducted a

national minerals survey. 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. Since 1990 economic reforms

ushered in an era of solid economic growth based on continued

investment in infrastructure, improved incentives for production and

exports, lower inflation, better domestic security, and the return

of exiled Indian-Ugandan entrepreneurs. Uganda has received about $2

billion in multilateral and bilateral debt relief. In 2007 Uganda

received $10 million for a Millennium Challenge Account Threshold

Program. The global economic downturn has hurt Uganda's exports;

however, Uganda's GDP growth is still relatively strong due to past

reforms and sound management of the downturn. Oil revenues and taxes

will become a larger source of government funding as oil comes on

line in the next few years. Instability in southern Sudan is the

biggest risk for the Ugandan economy in 2011 because Uganda's main

export partner is Sudan and Uganda is a key destination for Sudanese

refugees.

Ukraine

After Russia, the Ukrainian republic was far and away the

most important economic component of the former Soviet Union,

producing about four times the output of the next-ranking republic.

Its fertile black soil generated more than one-fourth of Soviet

agricultural output, and its farms provided substantial quantities

of meat, milk, grain, and vegetables to other republics. Likewise,

its diversified heavy industry supplied the unique equipment (for

example, large diameter pipes) and raw materials to industrial and

mining sites (vertical drilling apparatus) in other regions of the

former USSR. Shortly after independence in August 1991, the

Ukrainian Government liberalized most prices and erected a legal

framework for privatization, but widespread resistance to reform

within the government and the legislature soon stalled reform

efforts and led to some backtracking. Output by 1999 had fallen to

less than 40% of the 1991 level. Ukraine's dependence on Russia for

energy supplies and the lack of significant structural reform have

made the Ukrainian economy vulnerable to external shocks. Ukraine

depends on imports to meet about three-fourths of its annual oil and

natural gas requirements and 100% of its nuclear fuel needs. After a

two-week dispute that saw gas supplies cutoff to Europe, Ukraine

agreed to ten-year gas supply and transit contracts with Russia in

January 2009 that brought gas prices to "world" levels. The strict

terms of the contracts have further hobbled Ukraine's cash-strapped

state gas company, Naftohaz. Outside institutions - particularly the

IMF - have encouraged Ukraine to quicken the pace and scope of

reforms. Ukrainian Government officials eliminated most tax and

customs privileges in a March 2005 budget law, bringing more

economic activity out of Ukraine's large shadow economy, but more

improvements are needed, including fighting corruption, developing

capital markets, and improving the legislative framework. Ukraine's

economy was buoyant despite political turmoil between the prime

minister and president until mid-2008. Real GDP growth exceeded 7%

in 2006-07, fueled by high global prices for steel - Ukraine's top

export - and by strong domestic consumption, spurred by rising

pensions and wages. Ukraine reached an agreement with the IMF for a

$16.4 billion Stand-By Arrangement in November 2008 to deal with the

economic crisis, but the Ukrainian Government's lack of progress in

implementing reforms has twice delayed the release of IMF assistance

funds. The drop in steel prices and Ukraine's exposure to the global

financial crisis due to aggressive foreign borrowing lowered growth

in 2008 and the economy contracted more than 15% in 2009, among the

worst economic performances in the world; growth resumed in 2010,

buoyed by exports. External conditions are likely to hamper efforts

for economic recovery in 2011.

United Arab Emirates

The UAE has an open economy with a high per

capita income and a sizable annual trade surplus. Successful efforts

at economic diversification have reduced the portion of GDP based on

oil and gas output to 25%. Since the discovery of oil in the UAE

more than 30 years ago, the UAE has undergone a profound

transformation from an impoverished region of small desert

principalities to a modern state with a high standard of living. The

government has increased spending on job creation and infrastructure

expansion and is opening up utilities to greater private sector

involvement. In April 2004, the UAE signed a Trade and Investment

Framework Agreement with Washington and in November 2004 agreed to

undertake negotiations toward a Free Trade Agreement with the US,

however, those talks have not moved forward. The country's Free

Trade Zones - offering 100% foreign ownership and zero taxes - are

helping to attract foreign investors. The global financial crisis,

tight international credit, and deflated asset prices slowed GDP

growth in 2010. UAE authorities tried to blunt the crisis by

increasing spending and boosting liquidity in the banking sector.

The crisis hit Dubai hardest, as it was heavily exposed to depressed

real estate prices. Dubai lacked sufficient cash to meet its debt

obligations, prompting global concern about its solvency. The UAE

Central Bank and Abu Dhabi-based banks bought the largest shares. In

December 2009 Dubai received an additional $10 billion loan from the

emirate of Abu Dhabi. The economy is expected to continue a slow

rebound. Dependence on oil, a large expatriate workforce, and

growing inflation pressures are significant long-term challenges.

The UAE's strategic plan for the next few years focuses on

diversification and creating more opportunities for nationals

through improved education and increased private sector employment.

United Kingdom

The UK, a leading trading power and financial center,

is the third largest economy in Europe after Germany and France.

Over the past two decades, the government has greatly reduced public

ownership and contained the growth of social welfare programs.

Agriculture is intensive, highly mechanized, and efficient by

European standards, producing about 60% of food needs with less than

2% of the labor force. The UK has large coal, natural gas, and oil

resources, but its oil and natural gas reserves are declining and

the UK became a net importer of energy in 2005. Services,

particularly banking, insurance, and business services, account by

far for the largest proportion of GDP while industry continues to

decline in importance. After emerging from recession in 1992,

Britain's economy enjoyed the longest period of expansion on record

during which time growth outpaced most of Western Europe. In 2008,

however, the global financial crisis hit the economy particularly

hard, due to the importance of its financial sector. Sharply

declining home prices, high consumer debt, and the global economic

slowdown compounded Britain's economic problems, pushing the economy

into recession in the latter half of 2008 and prompting the then

BROWN government to implement a number of measures to stimulate the

economy and stabilize the financial markets; these include

nationalizing parts of the banking system, cutting taxes, suspending

public sector borrowing rules, and moving forward public spending on

capital projects. Facing burgeoning public deficits and debt levels,

the CAMERON government in 2010 initiiated a five-year austerity

program, which aims to lower London's budget deficit from over 11%

of GDP in 2010 to nearly 1% by 2015. The Bank of England

periodically coordinates interest rate moves with the European

Central Bank, but Britain remains outside the European Economic and

Monetary Union (EMU).

United States

The US has the largest and most technologically

powerful economy in the world, with a per capita GDP of $47,400. In

this market-oriented economy, private individuals and business firms

make most of the decisions, and the federal and state governments

buy needed goods and services predominantly in the private

marketplace. US business firms enjoy greater flexibility than their

counterparts in Western Europe and Japan in decisions to expand

capital plant, to lay off surplus workers, and to develop new

products. At the same time, they face higher barriers to enter their

rivals' home markets than foreign firms face entering US markets. US

firms are at or near the forefront in technological advances,

especially in computers and in medical, aerospace, and military

equipment; their advantage has narrowed since the end of World War

II. The onrush of technology largely explains the gradual

development of a "two-tier labor market" in which those at the

bottom lack the education and the professional/technical skills of

those at the top and, more and more, fail to get comparable pay

raises, health insurance coverage, and other benefits. Since 1975,

practically all the gains in household income have gone to the top

20% of households. The war in March-April 2003 between a US-led

coalition and Iraq, and the subsequent occupation of Iraq, required

major shifts in national resources to the military. Soaring oil

prices between 2005 and the first half of 2008 threatened inflation

and unemployment, as higher gasoline prices ate into consumers'

budgets. Imported oil accounts for about 60% of US consumption.

Long-term problems include inadequate investment in economic

infrastructure, rapidly rising medical and pension costs of an aging

population, sizable trade and budget deficits, and stagnation of

family income in the lower economic groups. The merchandise trade

deficit reached a record $840 billion in 2008 before shrinking to

$506 billion in 2009, and ramping back up to $630 billion in 2010.

The global economic downturn, the sub-prime mortgage crisis,

investment bank failures, falling home prices, and tight credit

pushed the United States into a recession by mid-2008. GDP

contracted until the third quarter of 2009, making this the deepest

and longest downturn since the Great Depression. To help stabilize

financial markets, the US Congress established a $700 billion

Troubled Asset Relief Program (TARP) in October 2008. The government

used some of these funds to purchase equity in US banks and other

industrial corporations, much of which had been returned to the

government by early 2011. In January 2009 the US Congress passed and

President Barack OBAMA signed a bill providing an additional $787

billion fiscal stimulus to be used over 10 years - two-thirds on

additional spending and one-third on tax cuts - to create jobs and

to help the economy recover. Approximately two-thirds of these funds

were injected into the economy by the end of 2010. In March 2010,

President OBAMA signed a health insurance reform bill into law that

will extend coverage to an additional 32 million American citizens

by 2016, through private health insurance for the general population

and Medicaid for the impoverished. In July 2010, the president

signed the DODD-FRANK Wall Street Reform and Consumer Protection

Act, a bill designed to promote financial stability by protecting

consumers from financial abuses, ending taxpayer bailouts of

financial firms, dealing with troubled banks that are "too big to

fail," and improving accountability and transparency in the

financial system - in particular, by requiring certain financial

derivatives to be traded in markets that are subject to government

regulation and oversight. In late 2010, the US Federal Reserve Bank

(The Fed) announced that it would purchase $600 billion worth of US

Government bonds by June 2011, in an attempt to keep interest rates

from rising and snuffing out the nascent recovery.

United States Pacific Island Wildlife Refuges

no economic activity

Uruguay

Uruguay's economy is characterized by an export-oriented

agricultural sector, a well-educated work force, and high levels of

social spending. After averaging growth of 5% annually during

1996-98, in 1999-2002 the economy suffered a major downturn,

stemming largely from the spillover effects of the economic problems

of its large neighbors, Argentina and Brazil. In 2001-02, Argentine

citizens made massive withdrawals of dollars deposited in Uruguayan

banks after bank deposits in Argentina were frozen, which led to a

plunge in the Uruguayan peso, a banking crisis, and a sharp economic

contraction. Real GDP fell in four years by nearly 20%, with 2002

the worst year. The unemployment rate rose, inflation surged, and

the burden of external debt doubled. Financial assistance from the

IMF helped stem the damage. Uruguay restructured its external debt

in 2003 without asking creditors to accept a reduction on the

principal. Economic growth for Uruguay resumed, and averaged 8%

annually during the period 2004-08. The 2008-09 global financial

crisis put a brake on Uruguay's vigorous growth, which decelerated

to 2.9% in 2009. Nevertheless, the country managed to avoid a

recession and keep positive growth rates, mainly through higher

public expenditure and investment, and GDP growth exceeded 7% in

2010.