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AfghanistanAfghanistan was the 113th largest economy by nominal GDP in 2018. GDP per capita was $521 USD. The economy has suffered from over forty years of war. It was ranked 133rd in the World Bank's Human Capital Index. Services accounted for 52.7 percent of GDP in 2017, followed by agriculture (20.5 percent), and manufacturing (11.1 percent). The largest export sectors in 2017 were agriculture (46.2 percent), services (29.5 percent), and minerals (8.11 percent). The largest individual exports were ICT services (24 percent), grapes (9.96 percent), natural gum and resin (6.8 percent), figs (6.8 percent), and gold (5.3 percent). Its largest export partners were Pakistan (40.9 percent), India (39 percent), and the UAE (9.74 percent). The largest import goods were transmission apparatus for radios, telephones, and televisions (8.77 percent), refined petroleum (6.4 percent), cigars and cigarettes (4.17 percent), and wheat or meslin flour (3.97 percent). Afghanistan was founded in 1747 after the Pashtun tribes united against the other ethnic groups. They maintained their dominance until the civil war after the Soviet withdrawal. During the 18th and 19th centuries Afghanistan served as a buffer between British and Russian interests. In 1919, the country gained independence from the British after the third Anglo-Afghan war. King Amanullah began to modernise the economy but fled in 1929 after a series of revolts. In the years that followed, the British, Soviets, and Americans jockeyed for influence. In the 1950s and 1960s, further attempts were made to modernise the country. In 1973 a coup deposed the Monarchy and established a republic. The government began to target leftist groups fearing growing Soviet influence. The communists take power in 1978 following another coup. When the communist government looked in trouble, the Soviets invaded in 1979. The Soviets fought a bitter war with the internationally backed mujahidin rebels. They withdrew in 1989. Following the Russian withdrawal, the country descended into civil war. In 1994, the Taliban emerged, capturing Kabul in 1996. The Taliban are mostly made up of Pashtun Islamic extremists. Following the September 11 terrorist attacks, a US led coalition invaded Afghanistan, after the Taliban refused to hand over the mastermind of the attacks, Osama Bin Laden. In 2004, free elections were held. With international aid and investment from the diaspora, the economy grew during the 2000s. Real GDP growth averaged 9 percent between 2003 and 2013. The Taliban have regained strength in recent years and have been waging terrorism against the state. The US began negotiating with the Taliban in late 2018 with the aim of securing peace. The Trump administration has promised the American public that it will withdraw troops from Afghanistan. Despite improvements in incomes, health and education since 2001, Afghanistan remains extremely poor and dependent on foreign aid.
AlbaniaAlbania, member of NATO and the World Trade Organisation is moving towards a free market economy and striving valiantly to shake off its reputation as an unwelcoming and austere centrally planned state. The service sector accounts for around 50 percent of the economy and agriculture and industry contribute to the balance in approximately equal measure. Tourism is becoming important and Albanian leisure offerings are now well received (with close to four million visitors each year and annual revenues heading for the two billion euros mark). The country was not initially affected too badly by the global financial crisis but there was an economic slowdown in the years that followed. There has been real improvement during the past few years but worries about poor economic performance in countries such as Greece and Italy (which have close trading, banking and remittance relationships with Albania) persist. There is always the risk of Albania catching a cold if one of these countries should sneeze. Albania faces a raft of challenges it must rise to before levels of foreign direct investment can be expected to rise substantially (the judicial system is cranky, infrastructure needs to be radically overhauled, corruption is everywhere and generally the business environment is less than friendly. Some progress is being made thanks to government determination to press ahead with law and financial reforms but much still needs to be done. Agriculture (a large consumer of labour but proportionately lower contributor to GDP) remains largely in the hands of smallholders and is grossly inefficient - which is no surprise given the insecurity experienced by farmers as the necessary local and central government support is nowhere near adequate. Government is grappling with the problems of an uneven electricity supply and working for a better road and rail network — which are prerequisites for sustainable economic growth.
Algeria
American Samoa
Andorra
AngolaAngola was the 61st largest economy in the world by nominal GDP in 2018 and the sixth largest in Africa. Its GDP per capita was $3,432 USD. Its economy is dominated by the oil industry with the fourth largest reserves in Africa: 8.4 bn barrels in 2018. It was ranked 147th in the World Bank's Human Capital Index and 117th in the Economic Complexity Index in 2017. It is a member of the African Union and OPEC. Services was the largest economic sector in 2017 (46.8 percent of GDP), followed by manufacturing (6.58 percent), and agriculture (10 percent). In 2017, the largest export sectors were minerals (88.6 percent), stones (6.68 percent), and services (2.77 percent). The largest individual exports were crude oil (83.75 percent), diamonds (6.67 percent), petroleum gasses (4.01 percent), and travel and tourism (2.48 percent). Its largest export partners were China (56.89 percent), India (11.32 percent), the USA (7.38 percent), and Taiwan (4.07 percent). The largest goods imports were electrical transformers (4.67 percent), refined petroleum (3.32 percent), parts of use with hoists and excavation machinery (2.65 percent), poultry (2.38 percent), and cars (2.23 percent). The Portuguese began to establish ports along the coast from the 16th century but did not gain control over the interior until the 19th century. The country played an important role in the Atlantic slave trade. After the abolition of slavery, coffee and diamonds became the main exports. They were replaced by oil in the 1960s which continues to dominate the economy. Between 1961 and 1974, several factions fought the War for Independence against the Portuguese. Independence was gained in 1975, but fighting among the three main factions led to a civil war that lasted until 2002. The Popular Movement for the Liberation of Angola (MPLA), a Marxist group, led the country supported by oil revenues, the Soviet Union, and Cuba. By 1990 it had embraced capitalism. It won the war in 2002 after the death of UNITA's leader. In 27 years of fighting, an estimated 1.5 million people died and much of the country's infrastructure was destroyed. Since the end of the civil war the government has restored macroeconomic stability and the economy grew strongly because of the resource boom in the 2000s. Corruption remains a problem but President João Lourenço (elected in 2017) has introduced new stronger measures. Since the 2000s, Angola has also benefitted from Chinese loans and investment in mining and infrastructure.
Anguilla
Antigua and Barbuda
ArgentinaArgentina is among the largest economies in South America and a member of the G-20 and the regional trading group Mercosur. It is an upper-middle-income country with a human capital index above the Latin American average and the average for its income group. It has high levels of literacy, education and health. It is rich in natural resources, including arable land, gas, oil, lithium, and gold. Increases in shale oil and gas production from Vaca Muerta promise to make the country a net energy exporter by 2020. It also has great potential for solar and wind energy. Agriculture is export orientated and accounted for 51 percent of exports in 2017. The main agricultural exports are soybeans and related products, cereals, and beef. It also has a diversified industrial sector, with strong links to agriculture: agricultural machinery, beverages, and food processing. It also has a large automotive and automotive parts sector. ICT services accounted for 9.5 percent of exports in 2017. In recent years there has been increased investment to expand the broadband and fibre-optic networks. Argentina's politics and economy have been volatile over the last 140 years, with periods of high economic growth followed by severe recessions. Democracy was restored in 1983 and marked a turn towards greater economic liberalisation. Inflation remained a problem, but this was addressed by pegging the peso to the dollar in 1991. Privatisation, deregulation, and trade liberalisation then led to a period of strong growth, but by 2001 recession, high unemployment, and decades of excessive public borrowing led Argentina to default on its debt. In 2002, a floating exchange rate was adopted which led to an export led recovery and strong growth in tourism. The 2008 global recession led to a slowdown and the government responded by tightening capital controls and protectionism. These were somewhat reversed in 2015, and strong growth returned. The government also passed important pension, tax, and fiscal reforms. In 2018, external shocks put pressure on the economy and the government asked the IMF for help to stabilise the economy. Growth is expected to return over the next few years.
Armenia
Aruba
AustraliaAustralia is a highly developed market economy and a member of the OECD and G20. It has the 14th largest economy in terms of nominal GDP (2019), the 20th in GDP per capita in PPP terms (2018), and the second in median wealth per adult (2019). Australia is a signatory to the Trans-Pacific Partnership 11 free trade agreement and in November 2019 agreed to join the Regional Comprehensive Economic Partnership (RCEP) agreement involving China, Japan, South, Korea, New Zealand and the ten ASEAN countries. Mining was the biggest individual contributor to GDP (10.2 percent) in 2018-19, followed by Financial and Insurance Services (9.3 percent), and Construction (8 percent). Overall, services contribute around 70 percent to GDP. Exports are dominated by minerals with a 60 percent share. The top five exports in 2017 were iron ore (14.5 percent), coal (14.2 percent), tourism (12.7 percent), LNG (12 percent), and gold (5.2 percent). China is Australia's top export partner. Australia has the eighth-highest total estimated value of natural resources, valued at US$19.9 trillion in 2016. This includes the largest share of global iron ore reserves (29 percent) and uranium reserves (29 percent), and the sixth largest share of black coal reserves (6 percent). The financial sector is highly sophisticated with one of the largest pools of contestable funds under management globally, valued at about US$850 billion. This is mostly due to Australia's compulsory retirement savings scheme called "superannuation" which is largely invested in equities. The Australian Securities Exchange in Sydney is the 16th-largest stock exchange in the world in terms of domestic market capitalisation and has the largest interest rate derivatives market in Asia. The Australian economy benefitted from deregulation and trade liberalisation in the 1980s and the resources boom in the 2000s. It has not experienced a recession since July 1991 and holds the world record for uninterrupted expansion. It has a strong financial system and along with Canada it weathered the 2008 global financial crisis relatively unscathed. Growth has slowed in the last two years while the housing market has had a minor correction.
AustriaAustria was the 26th largest economy in the world by nominal GDP in 2018. GDP per capita is $51,513, which is above the average for high income and OECD countries. It is ranked 12th in the World Bank's Human Capital Index. Austria has traditionally had strong economic ties with Germany, but EU membership has led to increased trade with other members. Since the expansion of the EU to former eastern bloc countries, Austria has become an economic bridge between Western and Eastern Europe. It is a member of the EU and OECD. Services was the largest economic sector in 2018 (62.7 percent of GDP), followed by manufacturing (16.6 percent), and agriculture (1.7 percent). In 2017, the largest export sectors were services (29 percent), machinery (15.25 percent), chemicals (11.09 percent), and agriculture (10.3 percent). The largest individual exports were ICT services (11.98 percent), travel and tourism (8.9 percent), transport services (6.9 percent), cars (2.4 percent), and medicaments (2.4 percent). Its largest export partners were Germany (29 percent), USA (6.7 percent), Italy (6.4 percent), Switzerland (5.11 percent), and France (4.7 percent). The largest goods imports were cars (6 percent), car parts (2.5 percent), refined petroleum (2.3 percent), and crude oil (1.64 percent). The economy recovered quickly after World War Two with aid from the Marshall Plan and the nationalisation of key industries. In 1955, the country regained autonomy with the allies withdrawing, including the Soviets. The economy grew rapidly between 1955 up until the first oil shock in 1974. In the 1990s new opportunities emerged as Central and Eastern Europe opened up, some SOEs were privatised, and Austria joined the EU. Growth was strong during the 2000s and has recovered post the global financial crisis with strong domestic growth, increased labour force participation, and migration. The economy is also benefitting from recent structural reforms in public finances, taxation, the labour market, and education.
Azerbaijan
BahamasThe Bahamas was the 190th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $30,762 USD. Its economy is dominated by tourism and financial services. It is made up of over 700 islands. It is a member of Caricom. Services was the largest economic sector in 2017 (75 percent of GDP), followed by manufacturing (2.6 percent), and agriculture (1 percent). The largest export sectors were services (69.38 percent), minerals (9.23 percent), vehicles (7.92 percent), and chemicals (5.41 percent). The largest individual exports were travel and tourism (63 percent), cargo ships and similar vessels (7.6 percent), polymers of styrene (5.4 percent), and refined petroleum (4.86 percent). Its largest export partners were the USA (40.8 percent), Poland (21.44 percent), Nicaragua (6.34 percent), and India (3.04 percent). The largest goods imports were cargo ships and similar vessels (27.3 percent), refined petroleum (16.6 percent), and crude oil (15.6 percent). British control of the islands brought slaves and cotton, but the conditions proved ill-suited for cotton. After emancipation, many former slaves turned to subsistence farming or sharecropping. Prior to World War Two, several other crop types were tried, including pineapple and sisal, but none led to a sustained export industry. Sea sponges were the main export up until diseases decimated the industry in the 1940s. In 1950, the Bahamas Development Board was established to grow the tourism industry and the industry boomed. It benefitted from the post World War Two prosperity in the US and advancements in air travel. In 1955, a "Freeport" zone was established in the island of Grand Bahama, which led to strong growth in tourism and manufacturing activities. From the late 1960s, offshore banking became a growing industry. Changes in US tax laws saw US banks look outwards and a favourable tax and legal environment in the Bahamas along with its proximity made it a popular destination. The Bahamas gained independence from Britain in 1973. Public debt has risen in the 2010s, but the government has introduced reforms to bring this down. In 2015, the government began developing a long-term non-partisan development plan: Vision 2040. In 2019, the country was devastated by Hurricane Dorian.
BahrainBahrain was the 96th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $24,051 USD. It is made up of 33 small islands in the Persian Gulf. It is highly dependent on oil and gas but is a growing financial centre. It was ranked 47th in the World Bank's Human Capital Index in 2017. It is a member of the GCC. Services was the largest economic sector in 2018 (55.3 percent of GDP), followed by manufacturing (17.6 percent), and agriculture (0.29 percent). In 2017, the largest export sectors were services (57.9 percent), minerals (21.7 percent), and metals (11.6 percent). The largest individual exports were insurance and finance (27 percent), travel and tourism (18.6 percent), refined petroleum (18.5 percent), and ICT services (11.2 percent). Its largest export partners were the UAE (27.9 percent), USA (11.9 percent), South Korea (4.5 percent), Japan (4.35 percent), South Africa (4.26 percent), and India (4.24 percent). The largest goods imports were cars (8.11 percent), and jewellery of precious metals (7.36 percent). After the expulsion of the Portuguese and several different local rulers, the current ruling family, the Al Khalifa, gained control of Bahrain in 1783. In 1861, it became a British protectorate and gained independence in 1971. In 1932, oil was discovered, marking the first discovery of oil in the Arabian Gulf. In 1948, natural gas was also discovered. However, the oil and gas reserves were relatively small forcing Bahrain to diversify much earlier than many of its neighbours. In 1968, Aluminium Bahrain (or Alba) was formed. Today it is among the largest producers of aluminium in the world with the largest single-site smelter. Bahrain has also developed a leading conventional and Islamic financial centre in the region. Its development began in 1975, with the issuing of off-shore baking licenses. Today, it is building on its legacy with its Fintech strategy held up as a model for the region. In 2018, 80bn barrels of shale oil was discovered off the west coast of Bahrain. The discovery greatly increases Bahrain's current reserves of 124m barrels and puts the country within the vicinity of the UAE's reserves (98bn barrels). The discovery has the potential to relieve much of the current fiscal pressure on Bahrain; public debt was 94.75 percent of GDP in 2018. In 2018, Saudi Arabia, the UAE, and Kuwait had provided a $10bn long-term aid package.
BangladeshThe People's Republic of Bangladesh has a developing market economy. Since 2005, its economy has been growing at roughly 6% per year. In the year 2019 (1st quarter), it became the world's 7th fastest growing economy with a real GDP growth rate of 7.3%. A developing country, Bangladesh, now has the 2nd highest foreign exchange reserves after India in South Asia. In the FY 2016-17, garments were the backbone of nation's industrial sector, accounting for a significant share (more than 80%) in total exports. The textile products are the nation's highest export earner. Along with textiles and garments, the country also exports leather and leather goods, pharmaceuticals and other chemical products etc. The country regularly ranks in the top three in world textile exports. The export growth in the garment sector and foreign remittances received from Bangladeshis working abroad have contributed heavily to the nation's foreign exchange reserves. China and India are the main import partners of the country. The major import goods are: Textiles and Textile Articles, Machinery and Mechanical Appliances, Electrical Equipment etc. Modern Bangladesh adopted a socialist model of economics which resulted in the nationalisation of industries. Subsequent military regimes and governments restored free markets and the private sector was promoted. The majority of the population earn their livelihood from agriculture. Owing to the population pressure, the production capacity faces severe burdens leading to problems of food deficit. The country has a dynamic ready-made garment industry which has created many new jobs and mostly for women. The industrial sector is brewing over the years as the working conditions of factories are not ideal. Labour costs are among the lowest in the world and favoured by many western multinationals. The country's GDP receives 51% contribution from the service sector. Political instability, institutional corruption, poor infrastructure and grim implementation of economic reforms have been roadblocks in its growth story. Recently, the country has made strides in its energy infrastructure, together with the beginning of LPG imports in the year 2018. All these steps are helpful in removing the bottlenecks from country's growth story.
BarbadosBarbados was the 191st largest economy in the world by nominal GDP in 2018. Its GDP per capita was $17,758 USD. It is a small island (430 sq. kms) in the Caribbean. Historically, the economy was dependent on sugarcane but in recent years the economy has diversified into tourism, light industry and offshore banking. It is a member of Caricom. Services was the largest economic sector in 2016 (75 percent of GDP), followed by manufacturing (4.8 percent), and agriculture (1.4 percent). In 2017, the largest export goods sectors were agriculture (31.4 percent), minerals (17.9 percent), machinery (15.3 percent), and vehicles (10.23 percent). The largest individual export goods were spirits < 80 percent alcohol (15.02 percent), orthopaedic appliances (13.06 percent), refined petroleum (8.54 percent), cargo ships and similar vessels (7.98 percent), and cements (7.41 percent). Its largest export partners were the USA (15.74 percent), Jamaica (8.91 percent), China (7.9 percent), Saint Lucia (6.3 percent), and Poland (6.08 percent). The largest goods imports were refined petroleum (20.3 percent), cargo ships and similar vessels (8.6 percent), cars (3.3 percent), and containers for transport (3.09 percent). Barbados was settled by the British in 1627, who maintained unbroken control until independence in 1966. Sugar has been the dominant industry throughout its history. But since independence, tourism, manufacturing, and financial services have become more important. Tourism boomed between 1966 and 1972 but slowed in the 1980s because of increased competition in the region. From 1959-60, the government began to promote manufacturing with the creation of industrial parks. In the late 1970s and early 1980s, reforms were introduced to foster offshore banking. The economy struggled during the global financial crisis. Since the crisis it has continued to struggle with lower tourism numbers, adverse effects on the finance industry from changes in regulations abroad, and the impact from the collapse of CL Financial. In 2018, the Barbados Economic Recovery and Transformation plan was launched to address high public debt and economic growth.
Belarus
BelgiumBelgium is the 23rd largest economy in the world by nominal GDP in 2018. GDP per capita is $46,556, which is above the average for high income and OECD countries. In 2018, trade was around 175 percent of GDP reflecting Belgium's central location in Western Europe, its multi-lingual workforce, and its efficient transport infrastructure — Belgium was ranked third in the world in the World Bank's Logistical Performance Index for 2018. It is a member of the EU and OECD. The EU and NATO are headquartered in Brussels. Services was the largest economic sector in 2018 (69 percent of GDP), followed by manufacturing (12.8 percent), and agriculture (0.7 percent). In 2017, the largest export sectors were chemicals (23.6 percent), services (22 percent), agriculture (10.3 percent), vehicles (9.09 percent), and machinery (8.8 percent). The largest individual exports were ICT services (13 percent), cars (5.74 percent), refined petroleum (4.8 percent), transport services (4.8 percent), medicaments (4.6 percent), and diamonds (2.9 percent). Its largest export partners were Germany (16.75 percent), France (15 percent), the Netherlands (11.92 percent), and the UK (7.83 percent). The largest goods imports were cars (7.4 percent), diamonds (4.64 percent), refined petroleum (4.43 percent), and medicaments packaged (4.3 percent). Belgium was one of the first countries to industrialise in continental Europe. Industry is concentrated around Brussels, Liège and Charleroi. The country quickly recovered after World War Two benefiting from its limited destruction during the war and from the Marshall Plan. It has a played key role in the development of the EU with its close political and economic integration with the Netherlands and Luxembourg (Benelux) providing a driving force. Benelux began with a customs union in 1944, became an economic union in 1958, and a new treaty was signed in 2008 to continue and further integration within the EU. The role of government expanded between the 1960s and 1980s and public debt increased but this was addressed with fiscal reforms in the 1980s and 1990s. The global financial crisis led to a banking crisis, with leading bank Fortis nationalised and 75 percent then sold to BNP Paribas. Since the crisis, growth has been slower, but Belgium remains one of the most competitive economies in Europe.
Belize
BeninFormerly known as Dahomey, Benin shares its border with Togo (west), Burkina Faso (north-west), Nigeria (east) and Niger (North east). The country has a free market economy which has been growing progressively for four years. Growth decelerated in 2017 and the country was exposed to risks from volatile commodity prices. Its economy is underdeveloped and reliant on subsistence agriculture, cotton production and regional trade. 40% of the country's GDP is accounted for by cotton. It is also a main export commodity with 80% of the official export earnings coming through it. Poverty has been increasing despite a consistent GDP growth rate of 4-5% over the last two decades. An average growth rate of 5% (during the past 7 years) in output has been nullified by a rapid population growth. The service sector forms a significant portion of GDP mainly because of the country's geographical location, transportation, enabling trade, transport and tourism activities with adjoining states. Benin is a member of the CFA Franc zone which offers both currency stability and access to French economic support. France is both the major export and import partner. Private foreign direct investment is low and a large proportion of investment in infrastructure projects comes through foreign aid. The country has a high degree of income inequality denoted by a value of 47.8. The level of human development is also low (0.520 in 2018). In 2006,a $307 million Millennium Challenge Grant was signed by the government in which projects to improve land tenure systems, commercial justice system and financial sector were incorporated. The country has a diversified microfinance sector with a microfinance services penetration rate of 60%. Revenues from economic activities in Port of Cotonou account for more than 40% of the country's national budget. In order to achieve its economic potential, Benin needs to upgrade its infrastructure, remove corruption and increase access to foreign markets.
Bermuda
Bhutan
Bolivia
Bonaire, Sint Eustatius and Saba
Bosnia and Herzegovina
Botswana
BrazilBrazil is the ninth largest economy in the world by nominal GDP and the largest in Latin America. It is a member of the G20 and Mercosur. The country is rich in natural resources including gold, uranium, iron ore, and timber. Services is the largest sector (62 percent of GDP in 2018) followed by manufacturing (9.7 percent) and agriculture (4.4 percent). In 2017, its largest export sectors were agriculture (36 percent of total exports), minerals (18 percent), ICT services (13 percent), and vehicles (7.8 percent). The largest individual exports were soya beans (9.7 percent), ICT services (8.2 percent), iron ore (7.5 percent), and oil (6.9 percent). Its largest export partners were China (21.8 percent), Argentina (7.7 percent), and the USA (3.5 percent percent). Its largest goods imports are oil (7 percent) and car parts (4.3 percent).By the 1900s Brazil produced up to 75 percent of the world's coffee beans but when the price of coffee halved in 1929-30 and the great depression hit, the economy fell into recession. After World War Two, the country turned towards protection and import substitution. This led to industrialisation and high growth but by the 1980s industry had become uncompetitive and the economy suffered stagflation as its terms of trade decreased in response to the 1970s oil shocks. The government also borrowed heavily during this period and by the 1990s, the economy was experiencing hyperinflation. Comprehensive reforms in the 1990s, including increased fiscal discipline, liberalisation, and a new currency regime saw the country return to growth. From 2000 to 2012 as the resource boom hit, Brazil became one of the fastest-growing economies in the world, with an average annual GDP growth rate of over 5 percent. This pulled 29 million people out of poverty and led to a decline in inequality. When the global financial crisis hit, Brazil was in a good position to counteract its effects. In 2015, the country experienced one of its worst recessions as resource prices fell and confidence collapsed. The economy has since recovered and with much needed pension reforms passing, conditions are in place for renewed growth.
British Virgin Islands
Brunei DarussalamBrunei is an energy-rich sultanate on the island of Borneo in southeast Asia. The country's economy is small but strong with crude oil and natural gas accounting for 65% of the GDP and 95% of exports. The country has a high per capita GDP ($78,350) in terms of purchasing power parity (PPP). Progress has been made by the government in expanding the economy beyond oil and gas to other industries such as communication technology, halal manufacturing and information technology. The country falls in the category of very high human development with an HDI score of 0.845. The country is the 9th largest producer of liquified petroleum gas (LPG) in the world producing approximately 25.3 million cubic metres per day. It is also the 3rd largest oil producer in southeast Asia. The domestic income is supplemented by funds earned from overseas investment. Citizens are not required to pay any income tax or capital gain tax and are provided with medical services and education (up to university level) free of charge. Foreign investment is encouraged with some enterprises meeting a specific criterion getting exemption from income tax for up to five years. The country is dependent heavily on imports, which include agricultural products and electrical goods and motorcars. The majority of the country's food products are imported from the ASEAN countries. In 2009 Brunei launched its own national halal branding scheme, Brunei Halal to help local manufacturers get access to the markets with a significant number of Muslim consumers. There has been an uptick in the trade since the country's economic integration with the ASEAN and an anticipated enactment of the TPP trade agreement. The government has accorded highest priority to the agricultural and fisheries sector in order to diversify its economy.
BulgariaBulgaria was the 72nd largest economy in the world by nominal GDP in 2018. GDP per capita is $9,273 USD. It is a small and open economy with trade at 128 percent of GDP. It is situated in the Balkans with key ports on the Black Sea. It is a member of the EU. Services was the largest economic sector in 2018 (60 percent of GDP), followed by manufacturing (14.4 percent), and agriculture (3.65 percent). In 2017, the largest export sectors were services (21.48 percent), agriculture (13.74 percent), metals (13.7 percent), and minerals (9.2 percent). The largest individual exports were travel and tourism (9.9 percent), ICT services (6.3 percent), refined petroleum (5.4 percent), and transport services (4.97 percent). Its largest export partners were Germany (12.6 percent), Italy (8.2 percent), Turkey (8.6 percent), Romania (7.3 percent), and Greece (5.7 percent). The largest goods imports were copper (7.6 percent), crude oil (6.64 percent), cars (3.6 percent), and medicaments packaged (3 percent). Bulgaria gained independence from the Ottomans in 1878 with Russian help. Under communism, Bulgaria transformed from an agricultural economy to an industrial and urban economy benefitting from Soviet trade and aid. However, once industrialisation was achieved, further productivity growth proved difficult. After the end of communism, and the disbanding of Comecon in 1991, Bulgaria progressed slowly, but FDI increased after Bulgaria joined the WTO in 1996, and again after Bulgaria joined the EU in 2007. Increased privatisations also helped to spur growth. From 2000 through 2008, Bulgaria grew at a rate of over 6 percent. The global financial crisis led to a deep recession in 2009 with growth recovering to a slower rate post-crisis. Strong domestic demand, increased exports, and EU development funds has seen an increase in growth since 2015. Reducing structural unemployment and increasing productivity would unlock new growth. Reducing corruption would also encourage further investment.
Burkina FasoSituated in west Africa, Burkina Faso is a landlocked country which has its economy primarily based on subsistence farming and livestock raising. A significant portion (90%) of the country's labour force is employed in agricultural activities. Inadequate rainfall, poor soil, poor communications and general infrastructure have exposed the economy to external shocks. The country has few natural resources, high population density and a weak industrial base. According to a World Bank report cotton is the main cash crop. Both cotton and gold are the major export items, with gold alone accounting for 75 percent of total export revenues. Cotton, ores, slag, ash, fruits, nuts and oil seeds are other export items. A lot of people from Burkina Faso work in neighbouring countries and the remittances sent by them form a significant contribution to the Balance of Payments. The country has a medium Gini-coefficient of 35.3. Human development has been low as denoted by the HDI score of 0.434. There was an uptick (6.4% from 5.9% in 2016) in the economic growth for the year 2017 on account of gold production and higher investment in infrastructure. The country has adopted the CFA franc as part of the West African Monetary and Economic Union (UMEOA). There has been positive growth in the country's economy since the end of political crisis, however a weak security situation may reverse these gains. A new development strategy which was set out in the 2016-2020 National Plan for Economic and Social Development was adopted by the government in the year 2016. Building human capital, reducing poverty and satisfying basic needs were the aims. As of 2018, tourism has been nearly non-existent in large parts of the country. According to World Bank, risks like high oil prices (which the country imports) and low prices of gold and cotton (which the country exports), terrorist attacks and labour strikes could negatively impact growth prospects.
Burundi
Cabo VerdeCabo Verde's GDP per capita in 2018 was $3,810 USD. It is an archipelago of ten volcanic islands in the Atlantic Ocean, off the coast of Senegal. Tourism, FDI, and remittances are key economic drivers. Personal remittances were 12.2 percent of GDP in 2018. In 2007, it moved from Least Developed Country status to Middle-Income Country status. It is a member of the African Union. Services was the largest economic sector in 2018 (61 percent of GDP), followed by manufacturing (6.98 percent), and agriculture (4.7 percent). In 2017, the largest export sectors were services (86.83 percent) and agriculture (9.03 percent). The largest individual exports were travel and tourism (58.76 percent), ICT services (15.1 percent percent), transport services (12.67 percent), and prepared or preserved fish (4.79 percent). Its largest export partners were Spain (49.7 percent), Portugal (16.97 percent), Italy (7.14 percent), and the Netherlands (5.92 percent). The largest goods imports were refined petroleum (9.06 percent), fixed wing aircraft 2,000 kg to 15,000 kg (2.57 percent), rice (2.47 percent), cars (2.01 percent). Settled by Portuguese settlers in 1462, Cabo Verde gained independence from Portugal in 1975. The economy had difficult initial conditions including a lack of natural resources, poor soil, low rainfall, a dispersed population, and no foreign reserves. Despite this it has achieved enviable economic growth through good governance and political stability. After independence, the government targeted key sectors using a policy of import substitution and central planning. The economy grew quickly benefitting from a pool of low-cost labour and capital accumulation. In the 1990s, reforms opened the country up to FDI, which led to growth in the tourism and fishing industries. Tourism became the dominant industry. Tourism also led to growth in transport, construction, and finance. From 1997, the government accelerated the privatisation process. In the 2000s, the government deepened reforms and modernised public administration, which contributed to strong economic growth. The global financial crisis led to a decrease in growth. Increased government spending had limited impact on increasing growth and instead led to increased public debt. New measures led to a decrease in public debt in 2017 but continued discipline is needed going forward.
CambodiaLocated in southeast Asia, Cambodia over the last decade has experienced strong economic growth with GDP growing at an average annual rate of 8%. In 2018, its GDP was $24.57 billion. The country has been designated as a least developed country by the United Nations. The country's economic system was modified during the mid-1990s from a planned economy to its current market driven system. Construction and real estate, tourism, garment production and agriculture were the sectors driving the majority of the growth. Women account for the majority of the workforce in the garment industry (which is quite similar to Bangladesh where more women are also employed in the ready-made garment industry), which accounts for 80% of the country's exports. Agricultural and sub-sectors are a source of livelihood for most of the rural household. The tourism sector has been flourishing with foreign arrivals exceeding 5.6 million in 2017. The country has been the recipient of strong international support due to the emergence of its democratic character. The 2015 International Trade Union Confederation Global Rights Index designated the country among the worst places in the world for organised labour. Corruption, high income inequality, limited manpower, substandard job prospects mean bleak prospects for long-term economic development. In 2016, the percentage of population living in poverty fell to 13.5%. The country has a young population with more than 50% younger than 25-years. Lack of education and a dearth of basic facilities-specifically in the impoverished countryside, have been among the biggest challenges faced by the country. Due to its continued economic growth over the years, the World Bank officially reclassified Cambodia as a lower middle-income country. This transition will trim the country's prospects for subsequent foreign assistance. Making a conducive business environment for private sector to flourish will be a major economic challenge for the country over the next decade. The country's total dependence on textile exports is worrisome because its Current Account Deficit (CAD) has been well above 9% since 2014.
Cameroon
CanadaCanada is an open and highly developed economy ranking high in terms of economic freedom and low in corruption. It is the 10th largest economy by nominal GDP (2018) and has a GDP per capita of $46,211 USD. It has the tenth highest Human Capital Index score ranking above the average for high-income countries. As with other developed nations, the service sector dominates with around two-thirds of GDP. Canada has the fourth highest estimated value of natural resources at $33.2 trillion in 2016. It has the world's third largest proven petroleum reserves after Saudi Arabia and Venezuela and is the fourth largest exporter of petroleum. It is also the fourth largest exporter of natural gas. Most of the oil comes from the oil sands in the western provinces, especially Alberta. The oil and gas industries employ around 500,000 people. Canada also has a sizable manufacturing sector, based in central Canada, with the automobile and aircraft industry being the most important. Its largest export sectors in 2017 were minerals (22.3 percent), agriculture (18.6 percent), and vehicles (17.1 percent). Its largest individual exports are oil (12.7 percent) and cars (10.9 percent). Its main export partner is the United States (74 percent) which is also the largest investor in Canada (49 percent of inward investment stock). Canada, the US, and Mexico first formed a free trade area in 1994. Canada's main imports are vehicles (16.2 percent) and industrial machinery (14.6 percent). The early development of Canada was determined by natural resources (fur, timber and fishing) traded over its waterways. From the 1850s on wheat exports became increasingly important and was aided by the advent of the railway and the Panama Canal. The discovery of gold in the late 1800s represented the first mining boom. Hydroelectric power, immigration, and confederation helped spur industrialisation in central Canada in the early 1900s, at which time the car, aluminium and paper industries emerged. The aircraft industry emerged during the 1940s. Post World War 2, the manufacturing, mining, and service sectors transformed the country from a largely rural economy into an industrial and urban one. Following the 1990-1 recession, Canadian businesses restructured and embraced technology to become more internationally competitive and the government increased fiscal discipline after the 1994-5 Mexican peso crisis put pressure on the Canadian dollar. In the 2000s, Canada benefited from the resources boom with the rising price of oil making the large-scale extraction of oil from the oil sands economically viable for the first time. This boom and a sound financial system allowed Canada to emerge strongly from the global financial crisis.
Cayman Islands
Central African Republic
Chad
ChileChile was the 40th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $15,923 USD. Chile was the largest copper producer in the world in 2018. It was ranked 45th in the World Bank's Human Capital Index and 61st in the Economic Complexity Index in 2017. It is a member of the regional trading group Mercosur and has been a member of the OECD since 2010. Services was the largest economic sector in 2018 (57.9 percent of GDP), followed by manufacturing (10.6 percent), and agriculture (3.6 percent). In 2017, the largest export sectors were agriculture (30.14 percent), minerals (24.46 percent), metals (22.85 percent), and services (12.29 percent). The largest individual exports were copper ore (20.37 percent), refined copper and copper alloys (18.06 percent), travel and tourism (4.42 percent), ICT services (3.76 percent), and transport services (3.55 percent). Its largest export partners were China (27.48 percent), the USA (14.66 percent), Japan (8.65 percent), and South Korea (5.41 percent). The largest goods imports were refined petroleum (5.95 percent), cars (5.87 percent), and crude oil (4.26 percent). Chile became independent from Spain in 1818 after the country was retaken from Royalists. The economy suffered initially as it transitioned from the colonial system and found new markets. But new discoveries of copper and British technology led to a mining boom, with copper becoming the main export by 1830. In the 1850s, copper and wheat exports drove the economy. the 1880s, nitrate exports became the main driver. Chile was also buoyed by territory gains from Peru and Bolivia in the "War of the Pacific". The economy performed poorly between 1910 and 1940. Institutions were weak, politics was volatile, and the economy suffered several external shocks including the advent of artificial nitrates, World War One and the Great Depression. Between 1950 and 1973, Chile pursued import substitution and industrialisation. The policy helped diversify the economy. In the 1970s massive increases in government spending, not financed by an increase in taxes or debt, and oil price shocks led to hyperinflation. After Pinochet took power in 1973, the country introduced pro-market reforms, large-scale privatisation, and macroeconomic reforms to stabilise the economy and increase growth. Results were modest during the 1980s but by the 1990s the economy was growing at unprecedented levels, and poverty fell. The economy boomed in the 2000s alongside the commodities boom but when prices fell so did growth; growth has been modest since 2014. In October 2019, protests erupted because of rising inequality. In December, the government announced a $5.5bn plan to increase growth and address protestors' concerns.
ChinaChina's economy is the second largest in the world by nominal GDP. In 2018, it was around two-thirds of the US economy and 2.7 times larger than Japan, the third largest. China has been among the fastest growing economies over the last 30 years, averaging over 6 percent annually. It is also the world's fastest-growing consumer market and second-largest importer of goods. It has 119 of the world's 500 largest companies, the world's largest foreign-exchange reserves, and the second-highest number of billionaires with total wealth of $996 billion. It still has much further to grow with a GDP per capita of $9,771 USD in 2018 and a Human Capital Index rating of 46. Services is the largest sector at 52 percent of GDP, followed by manufacturing at 29.4 percent. It is the world's largest manufacturing economy and exporter of goods. It also has the world's largest natural resources worth $23 trillion, 90 percent of which are coal and rare earth metals. In 2017, its main export sectors were electronics (27 percent of total exports), machinery (22 percent), and textiles (15 percent). Its largest individual exports were transmitting and receiving apparatus for televisions, radio and phones (8.5 percent), computers (5.3 percent), ICT services (4.7 percent), and parts and accessories for office machines (3.4 percent). Its largest export partner is the US (19 percent). Its largest imports are electronic integrated circuits (13.2 percent), oil (9.9 percent), iron ore (3.9 percent), cars (2.9 percent) and soya beans (2.3 percent). Since the late 1970s, China has moved from a closed, centrally planned system based on agriculture to a more market-oriented system based on manufacturing exports and services. In 1985 about 63 percent of the population lived in rural areas, and nearly 63 percent of the labour force was in agriculture. Today 59 percent live in urban areas and 43 percent work in services. Reforms began with the end of collectivized agriculture in the late 1970s and early 1980s. Reform then moved to other parts of the economy with liberalisation of prices and greater autonomy for SOEs. The private sector was encouraged, and a modern banking system and stock markets were developed. China employed a selective industrial policy with state support for key sectors and maintained a restrictive investment regime. Its latest strategic plan, "Made in China 2025", seeks to put China at the forefront of a range of key global industries.
China, Hong Kong SAR
China, Macao SAR
ColombiaColombia was the 38th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $6,651 USD. It is rich in natural resources, ranking 25th in terms of natural capital as measured by the World Bank in 2014. It was ranked 70th in the World Bank's Human Capital Index and 53rd in the Economic Complexity Index in 2017. It is a member of the regional trading group Mercosur. Services was the largest economic sector in 2018 (57.8 percent of GDP), followed by manufacturing (11.3 percent), and agriculture (6.3 percent). In 2017, the largest export sectors were minerals (47.54 percent), agriculture (16.82 percent), services (15.76 percent), and chemicals (6.6 percent). The largest individual exports were crude oil (27.7 percent), coal (14.99 percent), travel and tourism (9.1 percent), and coffee (4.95 percent). Its largest export partners were the USA (28.34 percent), China (8.24 percent), and Panama (5.76 percent). The largest goods imports were refined petroleum (7.02 percent), cars (4.18 percent), and transmission apparatus for radio, telephones, and television (4.11 percent). Simon Bolivar declared independence from Spain in 1819 following a revolt that began in 1810. The late 19th century saw the development of the coffee industry which boomed from after the "one thousand day civil war" (that led to the independence of Panama) to the 1950s. Low coffee prices in the 1950s and 1960s led to a devaluation of the currency, which spurred industrialisation and import substitution. Oil was discovered in 1918 but was used entirely for domestic consumption until the 1980s. Since then, oil has become the main export. Recently, the government has been promoting exploration and advanced extraction techniques because of a lack of recent discoveries. Between 1946 to 1958, conflict erupted between the followers of the two main political parties, "La Violencia", which disrupted the economy and led to the formation of armed rebel groups. These groups became involved in the drug trade and have long resisted the government. In 1991, constitutional reform brought greater stability along with increased military efforts against the armed groups. Peace was reached with the main rebel group in 2016, FARC, but some factions have retaken arms. Fiscal pressure and a banking crisis in the 1990s led to reforms and increased trade liberalisation in the 1990s and 2000s. As a result new industries emerged during the 2000s and 2010s, e.g. electronics, cars, tourism, and shipbuilding, but oil and coal remain the main exports.
Comoros
Congo
Cook Islands
Costa Rica
Côte d'Ivoire
CroatiaCroatia was the 74th largest economy in the world by nominal GDP in 2018. GDP per capita is $14,869 USD. A member of the former Yugoslavia it joined the EU in 2013. Since independence, tourism has emerged as a key industry. Services was the largest economic sector in 2018 (58 percent of GDP), followed by manufacturing (11.9 percent), and agriculture (2.9 percent). In 2017, the largest export sectors were services (49 percent), agriculture (11.2 percent), and chemicals (8.24 percent). The largest individual exports were travel and tourism (35 percent), and ICT services (9.6 percent). Its largest export partners were Italy (11.6 percent), Germany (11.4 percent), Slovenia (10.15 percent), and Bosnia (9.8 percent). The largest goods imports were crude oil (6.45 percent), refined petroleum (4.5 percent), cars (4.43 percent), and electrical energy (3.12 percent). Croatia's economy suffered badly during the Croatian War of Independence. On top of the transition from the Yugoslav socialist economy, it lost the key market of Serbia for its manufactured products, and tourism collapsed. After the war, the economy recovered reaching growth of over 6 percent. It was led by macroeconomic stabilisation, a rebound in tourism, post-war reconstruction, and credit-driven consumer spending. Privatisation also played an important part helping to push the share of the private sector from 30 percent to 80 percent by the end of the 1990s. Exports however were not increasing and by 1998 an external balance crisis developed and when the government responded with tighter monetary policy the economy went into recession. In the 2000s the economy again grew strongly buoyed by strong capital flows and domestic credit growth but public debt also increased leaving the economy exposed when the global financial crisis hit. By 2015, growth had recovered, and since then fiscal reforms have helped reduce imbalances. Unemployment has also been falling but further gains can be made by increasing the low participation rate. Reforms in education and increased investment in research and development will also help future growth.
Cuba
Curaçao
CyprusCyprus was the 107th largest economy in the world by nominal GDP in 2018. GDP per capita is $28,159 USD. It is ranked 28th in the World Bank's Human Capital Index and 45th in the Logistics Performance Index. It has been a member of the EU since May 2004 and adopted the euro in January 2008. Services was the largest economic sector in 2018 (73 percent of GDP), followed by manufacturing (4.7 percent), and agriculture (1.7 percent). In 2017, the largest export sectors were services (75 percent) and vehicles (5.4 percent). The largest individual exports were travel and tourism (21 percent), transport services (20 percent), insurance and finance (17.4 percent), and ICT services (16.6 percent). Its largest export partners were Greece (11 percent), Israel (9.5 percent), Libya (7.8 percent), and the UK (4.7 percent). The largest goods imports were refined petroleum (14 percent), cargo ships and similar vessels (11.8 percent), special function vessels (4.6 percent), and other vessels (3.94 percent). Following independence from the UK in 1959, the government pursued import substitution, and developed agriculture, and tourism. Initially agricultural exports led the way but was soon eclipsed by manufacturing, and tourism. After the conflict with Turkey in 1974 and the large internal migrations, Cyprus pursued labour-intensive industries such as textiles and clothing, which led to full employment by 1977. During the 1980s, tourism emerged as the main driver of the economy with new resorts and infrastructure built in the south. The shipping industry also grew rapidly and since Cyprus' entry into the EU, it has become a major player in the European shipping industry due to its location, skilled workers, and tax incentives. Accession to the EU also led to the liberalisation and growth of the banking industry. Fuelled by domestic credit, Cyprus' two largest banks expanded aggressively, spurring economic growth. However, when the Greek debt crisis hit in 2010, the banks were left exposed and in 2013, the government received a bail-out from the EU and IMF. By 2015, the economy had recovered from the 2012-2013 recession with strong growth in service exports.
CzechiaCzechia was the 44th largest economy in the world by nominal GDP in 2018. GDP per capita is $23,078 USD. It is a well-developed and open economy. Czechia is ranked 14th in the World Bank's Human Capital Index, and trade was at 150 percent of GDP in 2018. Its economy is also diverse with a ranking of 9th in the Economic Complexity Index (2017). It is a member of the EU and OECD. Services was the largest economic sector in 2018 (56 percent of GDP), followed by manufacturing (23 percent), and agriculture (1.9 percent). In 2017, the largest export sectors were machinery (20 percent), vehicles (19 percent), electronics (14.3 percent), services (13.2 percent), and chemicals (8.59 percent). The largest individual exports were cars (10 percent), car parts (7.1 percent), ICT services (6.33 percent), computers (3.7 percent), and travel and tourism (3.4 percent). Its largest export partners were Germany (31 percent), Slovakia (7.8 percent), and Poland 6.12 percent. The largest goods imports were parts of motor vehicles (5.6 percent), parts and accessories for office machines (4.97 percent), and transmission apparatus for radio, telephone, and TV (4.25 percent). Czechoslovakian industry was already well developed by the start of World War Two and survived the war largely intact. Following the fall of communism in 1989 and the dissolution of Czechoslovakia in 1993, Czechia took advantage of its large established industrial base and central location by increasing foreign investment. It quickly became a key country in the global supply chain for cars and other manufactured goods. Growth was interrupted by the global financial crisis but had recovered by 2015. Since 2014, the government has introduced reforms to further increase investment and welfare, and to decrease corruption and tax evasion. The government also plans to reform the labour market in order to address labour shortages resulting from low unemployment and labour market rigidities.
Dem. Rep. of the CongoLocated in central Africa, the Democratic Republic of Congo has been bequeathed with substantial wealth of natural resources and still the economy continues to perform poorly. Political instability, war and corruption has marred the growth of the once thriving mining and agricultural sector, leaving the country with one of the lowest GDP per capita and HDI. The Congo is also one of the least developed countries in the world. Intermittent conflicts during the early 90s have taken a toll on the government's revenue with a dramatic fall in national output and increased external debt. This, along with lack of infrastructure and a tough business environment has resulted in the foreign businesses curtailing operations. It has also increased poverty and hunger in the country and with that hunting of rare wildlife has increased. By 2015, the country had failed to meet any Millennium Development Goals (MDG). Human right abuses have also ruined economic activity. The country has an unemployment rate of 7%. Since the withdrawal of invading foreign troops, conditions have improved with both IMF and World Bank missions helping the government in developing a rational economic plan. Significant economic activity occurs in the informal sector which is not reflected in GDP data. The country's economy relies heavily on mining. It is not only the world's largest producer of cobalt ore, but also a major producer of industrial diamonds and copper. Copper is the primary product for export, the prices of which fell drastically in 2015, which in turn reduced both governmental revenue, expenditure and foreign reserves. In mid-2017 inflation touched nearly 50% which was the highest since the early 2000s. The country has been defined as the "Saudi Arabia of the electric vehicle age" for its vast cobalt resources. Construction of rail and road has been hindered due to the difficult terrain and climate of the Congo Basin.
DenmarkDenmark was the 36th largest economy in the world by nominal GDP in 2018. GDP per capita is $60,726, which is above the average for high income and OECD countries, and is among the highest in the world. It is a well-developed and open economy. It is ranked 17th in the World Bank's Human Capital Index and 8th in the Logistics Performance Index. It is a member of the EU and OECD. It is not a member of the eurozone but instead pegs its currency (krone) to the euro. Denmark is an example of the Nordic model, characterised by an internationally high tax level, and a correspondingly high level of government-provided services. Services was the largest economic sector in 2018 (65 percent of GDP), followed by manufacturing (12.6 percent), and agriculture (1 percent). In 2017, the largest export sectors were services (39.45 percent), chemicals (15.13 percent), agriculture (13.8 percent), and machinery (10.1 percent). The largest individual exports were transport services (21.19 percent), ICT services (12.8 percent), and packaged medicaments (8.5 percent). Its largest export partners were Germany (13.4 percent), Sweden (10.73 percent), USA (7.25 percent), UK (6.2 percent), and Norway (5.63 percent). The largest goods imports were cars (4.89 percent), packaged medicaments (3.45 percent), refined petroleum (3.1 percent), and crude oil (2.4 percent). Denmark's economy has long benefitted from free trade, specialisation, and proximity to the large markets of the UK and the Netherlands. Unusually, its modern economy was developed mainly through agriculture, particularly butter and bacon exports to the UK. It was not until the 1950s that manufacturing displaced agriculture in importance. The Danish economy is also unusual in that there were no forced nationalisations of industry in the 20th century and that industry developed without import substitution. Light industry developed organically to supply the domestic market and later began exporting. In the late 1960s, the welfare state was developed as new taxes provided the government with increased income. In 1973, Denmark joined the European Economic Community at the same time as its key trading partner, the UK. However, it has opted out of four areas of EU cooperation, including the euro and a common-defence policy. The economy continues to evolve and rates highly in terms of digitisation and productivity. The economy contracted during the global financial crisis but has since returned to modest growth.
DjiboutiLocated in the horn of Africa, the Republic of Djibouti is mostly barren with a harsh climate and low development in the industrial and agricultural sectors. The country's strategic location in the Red Sea supports its economy. The majority of the country's population live in the capital city. The human development is low denoted by a low HDI score of 0.495. The principal food crops are fruits and vegetables and other food items are imported (due to limited rainfall). The service sector (79.7%) constitutes the majority of GDP. The Djibouti authorities in concomitance with several non-profit organisations have initiated a number of development projects to improve conditions for foreign direct investment in the country. Although, that being said, sectors related to public utilities are state owned and currently not open to investors. The government has also unveiled fresh private sector policies which target high interest and inflation rates. Djibouti is not only a transit port for the region, but it is also an international shipment and refuelling centre. The country is heavily reliant on foreign assistance to help aid its balance of payments and to finance development projects. During the period 2014-17, owing to low international food prices and a fall in electricity tariffs, inflation was lingering at 3%. Piracy has been a threat in the Gulf of Aden and off the coast of Somalia which has resulted in the requirement of larger nations like the United States, France and Japan to implant logistic bases or military camps from which they can safeguard their cargo from theft. The lease payments received on account of foreign military presence were more than 5% of the country's GDP in 2017. China has been helping the country's government in strengthening infrastructure development for energy and transportation and in 2017 two of the largest projects in nation's history were unveiled, the Doraleh port and Djibouti-Addis Ababa Railway under the Chinese Belt and Road Initiative (BRI).
Dominica
Dominican RepublicThe Dominican Republic was the 66th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $7,650 USD. For the past 20 years, the Dominican Republic has been one of the fastest growing economies in Latin America. The economy is highly dependent upon the US for exports and imports. Remittances from the US amount to about 7 percent of GDP. Total personal remittances in 2018 were 8.4 percent of GDP in 2018. It was ranked 101st in the World Bank's Human Capital Index and 74th in the Economic Complexity Index in 2017. Services was the largest economic sector in 2018 (59 percent of GDP), followed by manufacturing (13.1 percent), and agriculture (5.5 percent). In 2017, the largest export sectors were services (48.9 percent), agriculture (13.25 percent), textiles (8.85 percent), machinery (7.8 percent), and stones (6.44 percent). The largest individual exports were travel and tourism (39.95 percent), medical instruments (6.7 percent), ICT services (5.03 percent), gold (4.96 percent), cigars and cigarettes (3.86 percent), and transport services (3.36 percent). Its largest export partners were the USA (50 percent), Haiti (9.3 percent), Canada (6.1 percent), and China (3.4 percent). The largest goods imports were refined petroleum (9.13 percent), cars (3.95 percent), transmission apparatus for radios, telephones, and televisions (2.3 percent), liquefied propane (2.25 percent), and jewellery of precious metals (2.23 percent). The sugar industry was re-established in the late 1800s and quickly became the dominant industry with modern machinery leading to a boom in production from the 1870s. Between 1930 and 1961, the country was ruled by the Rafael Trujillo military dictatorship. Land reforms, irrigation, and training for peasants led to increased productivity and output in agriculture. However, the twilight of the dictatorship was characterised by corruption and the establishment of monopolies controlled by the ruling family, including over the sugar industry. In 1968 the Industrial Development Board was formed as the government turned to an import substitution strategy for manufacturing. In the 1980s, assembly manufacturing reached a third of exports. Tourism also grew strongly in the 1980s starting from a low base. It surpassed sugar and merchandise exports by decade end. In the 1980s, the country experienced a balance of payments crisis triggered by external shocks, large public debt, and high interest rates. In the 1990s, the government created special economic zones and pursued policies to encourage FDI including investment in infrastructure. This led to the development of textiles and other light manufacturing. Tourism also continued to boom. The economy experienced a financial crisis in 2003, when tourism slowed after the 9-11 attacks in the USA and the price of petroleum imports increased. The economy performed well in the 2010s on the back of strong US growth and the development of the Pablo Viejo gold and silver mine. Migrants have played an important role in the economy providing remittances, niche export markets, and FDI.
EcuadorEcuador was the 59th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $6,345 USD. It was the largest exporter of bananas by value in 2018. Personal remittances were 2.8 percent of GDP in 2018. It was ranked 66th in the World Bank's Human Capital Index and 102nd in the Economic Complexity Index in 2017. It is a member of the regional trading group Mercosur. Services was the largest economic sector in 2018 (51.6 percent of GDP), followed by manufacturing (14.6 percent), and agriculture (9.24 percent). In 2017, the largest export sectors were agriculture (49.5 percent), minerals (34.45 percent), and services (9.52 percent). The largest individual exports were crude oil (30.4 percent), bananas and plantains (16.15 percent), frozen shrimps (12.35 percent), and travel and tourism (6.84 percent). Its largest export partners were the USA (28.8 percent), Vietnam (6.64 percent), Peru (6.62 percent), Chile, (6.04 percent), and Russia (5.67 percent). The largest goods imports were refined petroleum (13.94 percent), cars (4.15 percent), and aromatic hydrocarbon mixes (4.1 percent). Ecuador gained independence from the Spanish in 1820 and then separated from Gran Colombia in 1830. Between 1860s and 1920s, cocoa was the main export. This was replaced by bananas in the 1940s, and oil in the 1970s. In the 1960s, the country switched from an open trade policy towards import substitution resulting in increased diversification. The economy grew strongly in the 1970s because of an increase in oil prices. The increase in revenue was accompanied by a large increase in public spending. By the late 1980s, public debt and inflation had risen leading to a debt crisis in 1993. The economy stabilised after dollarization in 2000 because it stopped the government from financing spending through seigniorage. Between 2001 and 2012, the oil price increased ten-fold propelling growth. From 2006, personal remittances became the largest source of national income after oil revenue. With the oil price declining in 2014, the economy fell into recession in 2015 and remained in recession in 2016. The government responded with reduced spending and new reforms. Growth has recovered slowly.
Egypt
El SalvadorThe republic of El Salvador is both the smallest and most densely populated country in the Central American region. The country's economy has the distinction of being the fourth largest in the region. El Salvador has a medium Gini-coefficient of 38.0 as per the latest figures released by the World Bank. As compared to other developing countries, the GDP growth rate has been relatively low. Remittances received from Salvadorans working in the United States form a major part of foreign income. In order to improve revenue collection, focus has been on indirect taxes. In the early 2000s, the country's government introduced a monetary integration plan making the U.S. dollar a legal tender alongside the Salvadoran Colón and by 2004 the circulation of the Colón was stopped and since then it has not been used in the country for any kind of transaction. The country was the first to ratify the Central America-Dominican Republic Free Trade Agreement (CAFTA) which has not only boosted exports but has also supported investment in the apparel sector which was suffering tough competition from the Asian countries. The country has signed free trade agreements with Mexico, Chile, Dominican Republic and Panama and has also increased its exports to these countries. In 2015, the country signed a five year $277 million second compact with the US government agency Millennium Challenge Corporation in order to improve the nation's competitiveness and output in the international markets. Natural disasters such as earthquakes and hurricanes, economic subsidies, and corruption have impeded the country's economy. The IMF in 2012 suspended a $750 million loan to the central government due to governmental policy of mandating large economic subsidies. Following the earthquake in 2001, the government maintained fiscal discipline but the nation's public debt has been increasing (59.3% of GDP IN 2017) over the past several years. Developing new growth sectors for a more diversified economy has been a challenge for the country.
Equatorial Guinea
Eritrea
EstoniaEstonia was the 99th largest economy in the world by nominal GDP in 2018. It has a population of 1.325m. GDP per capita is $22,928. It is a small open economy with trade at 147 percent of GDP in 2018. Over the last twenty years it has benefitted from an ambitious reform agenda. It is ranked 29th in the World Bank's Human Capital Index and 26th in terms of Economic Complexity. It is a member of the EU and OECD. Services was the largest economic sector in 2018 (59 percent of GDP), followed by manufacturing (13.4 percent), and agriculture (2.2 percent). In 2017, the largest export sectors were services (30.45 percent), agriculture (14.7 percent), electronics (12.9 percent), and machinery (8.2 percent). The largest individual exports were ICT services (13.6 percent), transport services (8.9 percent), travel and tourism (7.3 percent), transmission apparatus for radio, telephone, and TV (4.67 percent), and refined petroleum (4.33 percent). Its largest export partners were Finland (14 percent), Sweden (11.6 percent), Russia (10 percent), Latvia (8.2 percent), and Germany (6.7 percent). The largest goods imports were refined petroleum (7.45 percent), and cars (6.21 percent). After gaining independence for the first time in 1920 from the Russian empire, Estonia reorientated itself to the Western Europe. Agriculture was the biggest sector, but manufacturing had been growing since the turn of the century i.e. textiles. During World War Two it was first annexed by the Soviet Union before being occupied by Nazi Germany. After World War Two, Estonia was incorporated into the Soviet Union and its command economy. Under Soviet control, Estonia experienced nationalisation, collectivisation, urbanisation, and mass deportations. Industrialisation was intensified with Russian immigration providing additional labour. By the 1980s, the economy was struggling, and infrastructure was crumbling. Estonia regained its independence in 1991 following the 'Singing Revolution' and the dissolution of the Soviet Union. From 1991, the government pursued an ambitious reform agenda. Macroeconomic stability was the first objective followed by privatisations, and the opening of the economy to free trade and entrepreneurship. The government has also worked hard to improve business conditions, including the rule of law and property rights, in order to attract FDI. The government has also championed innovation, revolutionising its administration through digitisation and improving the education system. Estonia was hit hard by the global financial crisis as exports decreased and the local housing market deflated but the economy has since recovered with strong productivity growth.
Eswatini
Ethiopia
Falkland Islands (Malvinas)
Faroe Islands
Fiji
FinlandFinland was the 42nd largest economy in the world by nominal GDP in 2018. GDP per capita is $44,648 USD, which is above the average for high income and OECD countries. Finland is strong in manufacturing, particularly in the wood, metals, engineering, telecommunications, and electronics industries. It also has a strong ICT sector. It is ranked 5th in the World Bank's Human Capital Index and 8th in terms of Economic Complexity (2017). It is a member of the EU and OECD. Services was the largest economic sector in 2018 (59 percent of GDP), followed by manufacturing (15 percent), and agriculture (2 percent). In 2017, the largest export sectors were services (29 percent), agriculture (15.34 percent), machinery (11 percent), metals (9 percent), and chemicals (8 percent). The largest individual exports were ICT services (21 percent), refined petroleum (4.8 percent), paper and paperboard (4.2 percent), and transport (4.1 percent). Its largest export partners were Germany (12.6 percent), Sweden (9.85 percent), USA (7.92 percent), the Netherlands (6.1 percent), and China (5.28 percent). The largest goods imports were crude oil (5.71 percent), cars (4.08 percent), and refined petroleum (3.15 percent). Reforms in the 1860s laid the foundation for Finland's modernisation, including the introduction of its own currency. In 1917 it declared independence from Russia. Post World War Two, the economy was still dominated by agriculture and wood, but from the 1950s, industrialisation increased as Finland rebuilt after the war and had to provide manufactured goods to Russia for reparations. The oil crisis slowed growth in the 1970s with increased trade to Russia compensating. With the collapse of the Soviet Union, trade was hit hard, but from the 1990s the electrical engineering and electronics sectors grew, outstripping wood as the leading export. Finland was turning towards knowledge-based industries becoming the diverse economy it is today. Despite sound macroeconomic fundamentals, the 2008-09 global financial crisis hit hard and was compounded by the collapse of Nokia's mobile phone market share. The economy initially recovered but then contracted between 2012 and 2014 due to several factors including sanctions on Russia because of its conflict with Ukraine and a collapse in the price of paper. Structural reforms such as the 2016 Competitiveness Compact with unions has helped the economy recover since and are the key to future growth.
FranceFrance is the world's 6th largest economy (20180 in nominal figures and the third largest in Europe after Germany and the United Kingdom. It has a GDP per capita of $41,463 USD which is above the average for the OECD and EU. It has a high level of education and health and is ranked 22nd in the Human Capital Index. The OECD is headquartered in Paris. France has a diversified economy. Services are the biggest contributor to GDP (70 percent in 2018), followed by manufacturing (9.7 percent). Services are also the biggest export led by ICT (18.3 per cent in 2017). France's tourism industry is a major component of the economy, as France is the most visited destination in the world; tourism and travel account for 7.5 percent of exports. Transport services account for 5.5 percent and Insurance and Finance 2.4 percent. Other major exports are aircrafts and parts (7.6 percent) – Airbus is headquartered in France, pharmaceutical products (3.9 percent), cars and parts (2.7 and 1.9 percent), and gas turbines (1.6 percent). France’s major export partners are Germany (14.2 percent), the USA (7.4 percent), Italy (7.28 percent), Spain (7.25 percent), and Belgium (6.8 percent). France’s largest goods imports are industrial machinery (11.8 percent), vehicles and parts (10.2 percent), electrical machinery and equipment (9.4 percent), and crude and refined oil (8.4 percent). Post World War 2, France modernised its economy through state coordination. This programme of dirigisme involved state control of key industries, such as transportation, energy and telecommunications, as well as incentives for private corporations to merge and pursue specified projects. After the 1970s oil shocks, inflation increased, growth decreased, and the Franc came under pressure. In 1983, the Mitterrand government responded with increased fiscal discipline and a new focus for economic policy: corporatisation and liberalisation. The government maintains a strong presence in some sectors, particularly power, public transport, and defence industries. The economy is also characterised by high levels of taxation, welfare, labour protection, and government spending. Post the global financial crisis, public debt rose from the mid-sixties to 99.3 percent of GDP in 2018. Since entering office in May 2017, President Emmanuel Macron has attempted to launch a series of economic reforms to improve competitiveness and boost economic growth.
French Polynesia
Gabon
Gambia
Georgia
GermanyGermany had the fourth-largest economy by nominal GDP in the world in 2018, and the largest in Europe. Germany is third largest exporting country and recorded the highest trade surplus in the world in four recent consecutive years. Germany benefits from a highly skilled labour force and is ranked 11th in the Human Capital Index. Over 99 percent of firms are small and medium enterprises, the "Mittelstand", which are typically larger than the European average, more export orientated, and tend to be family owned. Germany has 29 companies in the top 500 global companies in 2019. In 2019, renewable energy accounted for 46 percent of electricity consumed. Services accounted for 62 percent of GDP in 2018. Manufacturing accounted for 21 percent, which is similar to the level for Japan and close to double the USA's. The leading export sectors are machinery (18.5 percent of exports in 2017), services (17.6 percent), vehicles (17.45 percent), and chemicals (14.95 percent). The largest individual exports are ICT services (9.8 percent), cars (8.8 percent), transport services (3.5 percent), and car parts (3.5 percent). Its leading export partners are the USA (8.7 percent, France (8.2 percent), China (6.75 percent), the UK (6.6 percent), and the Netherlands (6.2 percent). Its biggest goods imports are electrical machinery and equipment (12.7 percent), industrial machinery (12.5 percent), vehicles (10.3 percent), and oil (7.8 percent). Industrialisation progressed rapidly after unification in 1871 as the population grew and urbanised, and the government introduced universal education and welfare. By 1900, Germany had overtaken the UK and the USA in steel production and was growing fast in the new knowledge industries of chemicals and electrical equipment. Post World War 2, West Germany recovered quickly with industry and institutions reorganised, recapitalised, and given a free-trade bias by the US. East Germany was organised as a command economy and decentralised policies saw a growth in industrialisation in the 1960s. Post re-unification the economy struggled in the 1990s as the government pursued fiscal consolidation. Labour market reforms by Chancellor Gerhard Schroeder in the late 1990s led to strong economic growth and falling unemployment in the 2000s. The economy weathered the global financial crisis with a public recapitalisation of banks and tax cuts.
Ghana
GibraltarGibraltar is an autonomous British overseas territory. GDP per capita was estimated at $61,700 USD in 2014. It is a small narrow peninsula that extends into the Mediterranean Sea in southern Spain. In 2018, its population was estimated at 33,718 people. In 2017, the largest export goods were floating docks and special function vessels (31.8 percent), fixed wing aircraft > 15,000 kgs (19.6 percent), cars (12.9 percent), refined petroleum (13.02 percent), and cargo ships and similar vessels (11.71 percent). Its largest export partners were Mauritania (31.7 percent), Germany (22.22 percent), the Netherlands (11.45 percent), and Poland (8.85 percent). The largest goods imports were refined petroleum (71 percent) and pleasure or sports boats (8.67 percent). Spain reluctantly ceded Gibraltar to Great Britain in 1713 in the Treaty of Utrecht after the British and Dutch had captured the peninsula in 1704. In 1830, the British garrison became a crown colony. It was granted autonomy in 1969. A new constitution came into force in 2007, and the European Court of First Instance recognised Gibraltar's right to regulate its own tax regime in 2008. The UK retains responsibility for defence, foreign relations, internal security, and financial stability. While shared sovereignty with Spain was rejected by the local population in 2002, three-way talks for increasing cooperation between the local population and Spain are ongoing. Its economy is mainly based on shipping, tourism, financial services and online gambling. Somewhere between 10,000 and 15,000 people travel into Gibraltar from Spain daily for work. Including tourists, on average there are 28,500 border crossings per day. After Brexit, the Spain - Gibraltar border will become an external border of the EU, with similar issues to the Irish border. Because of this, Gibraltar's First Minister has suggested that it would make sense for Gibraltar to join the Schengen zone, but so far the UK Government is against it.
GreeceGreece was the 50th largest economy in the world by nominal GDP in 2018. GDP per capita is $20,324 USD. It is a member of the EU and OECD. Services was the largest economic sector in 2018 (68 percent of GDP), followed by manufacturing (9.5 percent), and agriculture (3.7 percent). In 2017, the largest export sectors were services (50.5 percent), minerals (16.5 percent), and agriculture (10.85 percent). The largest individual exports were travel and tourism (26.4 percent), transport services (16 percent), refined petroleum (14 percent), and ICT services (7 percent). Its largest export partners were Italy (9.3 percent), Germany (7 percent), Turkey (6.7 percent), and Cyprus (6.1 percent). The largest goods imports were crude oil (14 percent), refined petroleum (5.87 percent), cargo ships and similar vessels (5.85 percent), and medicaments (3.82 percent). World War 2 devastated the country's economy, but the economy recovered quickly post-war due to reconstruction and the Marshall Plan. As was the case for much of the world, the oil shocks in the 1970s brought stagflation and increasing public debt. Public debt continued to grow rapidly during the 1980s as the government increased social spending. Pressure from the high level of public debt was relieved when Greece joined the euro. From 2000 Greece experienced high levels of GDP growth above the Eurozone average but public debt continued to increase despite Greece's commitment to the Growth and Stability pact. In 2010 Greece experienced a debt crisis after investors and rating agencies lost confidence in the government following repeated revelations of hidden debt and inaccurate statistics. Greece turned to the EU and IMF for help. The bail-out included controversial austerity measures which with the Greek governments initial reluctance to reform plunged the country into a protracted recession. In 2017, Greece returned to growth led by an increase in household spending and exports. Falling unemployment has also contributed as has an upward trend in consumer confidence.
Greenland
Grenada
Guam
GuatemalaGuatemala's main industry is agriculture. Exports are mainly sugar cane, African palm and maize for biofuel production, but also increasingly fruit, vegetables and coffee. Tourism is becoming a major industry, and with good reason. As well as unspoilt Caribbean beaches, visitors are treated to ancient ruins of the Mayan civilisation, and the more recent ruins of Spanish colonisation. The SICA customs union and free trade agreements, as well as business legislation promoting privatisation over monopolies, have helped to attract foreign investment. FDI is rising, especially in sectors such as food, telecommunications, tourism and consumer goods.
Guinea
Guinea-Bissau
Guyana
Haiti
Holy See
HondurasLocated in central America, Honduras is the second poorest country in the region with a high Gini-coefficient (which indicates high unequal distribution of income) and underemployment — (1/3rd of the population). The unemployment rate is 5.6% (2018). The country's GDP growth rate was 4.8% in 2017 and 3.7% in 2018 and is projected to grow at 3.3% in 2019 and 3.5% in 2020. Though the poverty rate fell from 60.8% to 52.6% between 2005 and 2017, the country's extreme poverty rate has been the highest in Latin America and Caribbean after Haiti. The economy is hugely dependent on US trade and remittances. Honduras has diversified its export base to include automobile wire harnessing and apparel (from earlier dependent on the export of coffee and bananas). The United States is the country's primary trading partner and is also the source of 2/3rd of Honduras's Foreign Direct Investment (FDI). The free trade agreement signed with the United States [CAFTA-DR (Dominican Republic- Central America FTA)] has helped encourage FDI, but some factors remain which may deter potential investors. These factors include physical and political insecurity, crime and corruption. The country faced rising public debt in 2017, but the performance of the economy has been better due to improved investor confidence and low oil prices. A $113.2 million stand-by agreement was signed with the IMF which aimed at maintaining the country's macroeconomic stability and improve conditions for sustainable economic growth and poverty reduction. Till June 2017, the country was able to meet all the criteria, except the indicative target on the National Electricity Company's (ENEE) operating revenue-to-spending ratio. The following reforms were undertaken: adoption of a fiscal responsibility law, and overhaul of tax administration among others. Increased security efforts by the country's government have brought down the homicide rate from 63.8 (2015) to 41.5 (2019) — per 100,000 inhabitants.
HungaryHungary was the 55th largest economy in the world by nominal GDP in 2018. GDP per capita is $15,939. It is a small open economy with trade at 168 percent of GDP in 2018. It is ranked 38th in the World Bank's Human Capital Index and 15th in terms of Economic Complexity. It is a member of the EU and OECD. Services was the largest economic sector in 2018 (54 percent of GDP), followed by manufacturing (19 percent), and agriculture (3.6 percent). In 2017, the largest export sectors were services (18.85 percent), machinery (18 percent), electronics (16 percent), vehicles (14.2 percent), and chemicals (11.7 percent). The largest individual exports were ICT services (9.5 percent), cars (8 percent), car parts (4.8 percent), transport services (4.7 percent), and travel and tourism (4.4 percent). Its largest export partners were Germany (26 percent) and Romania (5.2 percent). The largest goods imports were car parts (5.3 percent), and cars (4.12 percent). Hungary began to industrialise within the Austro-Hungarian empire from the 1890s as a developing bourgeois class began investing but industry remained relatively small prior to World War Two. Post war, the economy grew rapidly due to reconstruction and increased industrialisation, but collectivisation had a negative impact on agriculture. Following the 1956 uprising, economic control was lightened and the economic responded with faster growth but by the late 1970s the economy was stagnating, and the government borrowed heavily to maintain spending. Following the fall of communism, Hungary experienced a difficult transition with a three-year recession, high inflation, and rising unemployment. A stronger commitment to reforms from 1995 led to a recovery and strong economic growth. The reforms included increased privatisations and better fiscal management. Hungary was hit hard by the global financial crisis of 2008-09 as export demand and domestic consumption fell. Growth has recovered in recent years due to increased EU funding, increased exports to the EU, and a rebound in household consumption.
Iceland
India"…At the stroke of the midnight hour, when the world sleeps, India will wake to life and freedom…". Pandit Nehru, Independent India's first Prime Minister spoke thus on August 14, 1947. Seventy-two years later, India has surpassed China to become the world's fastest growing economy. Since the 1991 economic reforms, the country has achieved 6-7% annual GDP growth, largely by virtue of the free-market reforms introduced by the then P.V. Narasimha Rao government. A developing market economy, India has most of its workforce employed in the industrial and agricultural sector. The service sector is the fastest growing (accounting for 55.6% of GDP). Economic growth suffered a slowdown in 2011 which was mainly due to investor scepticism, high inflation and high interest rates. With the coming of parliamentary elections in 2014, investors started showing more confidence which resulted in improved foreign direct Investment and a strengthening of the rupee. In 2017, the economy suffered another jolt due to the shock announcement of demonetisation a year earlier and the introduction of GST (the goods and service tax). There are several factors that are impeding further growth. According to the 2018 Corruption Perception Index (CPI), India ranks 78 (versus Denmark at number one). The literacy rate is also lower than the world average with huge economic disparities between states. India is a country with a predominantly young population, which in economic terms translates to high savings, low dependency ratio and healthy investment rates.
IndonesiaIndonesia was the 16th largest economy by nominal GDP in 2018 and the largest in South-East Asia. It is the fourth most populous country in the world. GDP per capita is $3,894 USD. Indonesia is a member of the G20 and is a founding member of ASEAN. Indonesia is rich in natural resources and has a strong domestic economy. Services accounted for 43 percent of GDP in 2018, followed by manufacturing (19.9 percent), and Agriculture (12.8 percent). The largest export sectors in 2017 were Agriculture (25 percent), minerals (20 percent), services (12 percent), textiles (11 percent), and chemicals (9 percent). The largest export products were palm oil (8.9 percent), coal (8.89 percent), travel and tourism (6 percent), petroleum gasses (4.1 percent), and ICT services (3.9 percent). Its largest export partners are China (13.8 percent), the USA (10.8 percent), Japan (9.98 percent), India (8.11 percent), and Singapore (6.8 percent). The largest import goods are oil (14.7 percent), industrial machinery (13.96 percent), electric machinery and equipment (11.9 percent), and iron and steel (5 percent). Indonesia began to transform under the Suharto government in the late 1960s with growth rates over 8 percent and a rapid reduction in poverty. Suharto ended the international isolation of the Sukarno era, which led to large inflows of international aid and investment. He also embarked on a policy of import substitution. Indonesia also began to benefit from an increasing oil price, particularly after the oil shocks in the 1970s. When the oil price began to fall in 1981, Indonesia was left exposed with high levels of debt and an uncompetitive economy. In response, Suharto Administration introduced a comprehensive national diversification program and deregulated the economy. Growth recovered but the 1997-1998 Asian crisis hit the country hard; GDP decreased by almost 14 % in 1998. It also exposed the structural problems and the level of corruption under Suharto. With IMF help, growth recovered in the 2000s and was maintained through the global financial crisis due in part to the resource boom and strong domestic demand. After the resource boom cooled in 2012, the government has turned to infrastructure spending to spur development. Indonesia has also benefitted from the establishment of the ASEAN economic community in 2015.
Iran (Islamic Republic of)
Iraq
IrelandIreland was the 30th largest economy in the world by nominal GDP in 2018. GDP per capita is $78,806 USD, well above the average for OECD and High Income Countries. It is a well-developed and open economy with a population of 4.8m in 2018. It is ranked 6th in the World Bank's Human Capital Index, and trade was at 211 percent of GDP in 2018. Its economy is also diverse with a ranking of 13th in the Economic Complexity Index (2017). It is a member of the EU and OECD. Services was the largest economic sector in 2018 (56 percent of GDP), followed by manufacturing (32 percent), and agriculture (0.9 percent). In 2017, the largest export sectors were services (52 percent), chemicals (26.4 percent), machinery (7.3 percent), agriculture (5.2 percent), and electronics (4.65 percent). The largest individual exports were ICT services (39.4 percent), insurance and finance (8.3 percent), medicaments packaged (7.4 percent), and serums and vaccines (6.8 percent). Its largest export partners were the USA (27.3 percent), the UK (11.2 percent), Belgium (9.7 percent), and Germany (7.4 percent). The largest goods imports were fixed wing aircraft greater than fifteen thousand kilograms (17.3 percent), blood (5.9 percent), and cars (3 percent). After independence from the UK in 1922, Ireland turned to import substitution and a focus on the domestic market, but by the 1950s the economy was struggling and emigration was high. By 1958, Ireland had changed course, embracing free trade, foreign investments, and international integration. It negotiated a free trade agreement with the UK in 1965, joined GATT in 1966, and the European Economic Community in 1973. It also cut corporate tax rates and invested heavily in education and infrastructure. The oil shocks, high inflation, and high public debt led to a slowdown in growth in the late 1970s and a recession in 1983. The government responded by decreasing government spending and by reducing wage growth through an agreement with employers, unions, and farmers. The government also continued its policy of attracting FDI and established the International Financial Services Centre in Dublin. The economy grew strongly in the 1990 and 2000s, earning the nickname the "Celtic Tiger". The global financial crisis and European debt crisis interrupted growth and an EU-IMF bailout was needed after the government took on much of the debt of the banking sector following the collapse of a property bubble. The economy has recovered strongly since. It has continued to attract FDI, including by some of the world's biggest tech firms. This has led to international pressure to reduce tax loopholes and incentives.
Israel
ItalyItaly is the 8th-largest economy by nominal GDP in 2018, and the 3rd largest in Europe. Italy is a member of the EU, the Eurozone, the OECD, the G7 and the G20. GDP per capita is $34,318. Italy is the ninth largest exporter in the world and the fifth most visited destination. It is highly diversified with a vibrant manufacturing, food, fashion, and luxury good sectors. It is the world's largest wine producer. Italy's economy comprises a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, with a legacy of unemployment and underdevelopment. Services accounted for 66 percent of GDP in 2018, followed by manufacturing (15 percent), and agriculture (1.9 percent). Its largest export sectors in 2017 were machinery (18.7 percent), services (18.1 percent), chemicals (12.8 percent), agriculture (11.8 percent), textiles (9.5 percent), and vehicles (8.8 percent). The largest individual exports were ICT services (7.22 percent), travel and tourism (7.17 percent), pharmaceutical products (4.2 percent), cars (2.9 percent), and refined petroleum (2.3 percent). Its main export partners are Germany (12.3 percent), France (10.15 percent), and the USA (8.98 percent). Leading import goods are cars (6.8 percent), crude oil (5.7 percent), and petroleum gasses (3.44 percent). The Italian economy grew strongly during the 1950s and 1960s as US aid and Italian businessmen helped the country to modernise, particularly in the north, and the economy was opened up to trade. The 1970s were turbulent because of the oil shocks and a vicious cycle of lira devaluations and inflation. The introduction of the European Monetary System in 1979 and the loss of competitive currency valuations forced small and medium Italian firms to innovate in local clusters, which led to the production of high-quality goods and the gaining of market share in other European markets. On the macro front, government debt increased during the 1980s and despite bouts of austerity measures remains high today. Bank collapses during the global financial crisis added to public debt. Tax evasion, the informal economy, and lower productivity growth also remain key challenges. Despite this, the economy has enjoyed modest growth in recent years.
JamaicaAn island country situated in the Caribbean, Jamaica has a mixed economy that is excessively dependent on services, accounting for more than 70% of GDP. The majority of the foreign exchange comes from tourism, remittances and the mining sector. The real per capita GDP increased at an average rate of 1% during the past 30 years, making Jamaica one of the slowest growing developing country in the world. The country's government went on to introduce an ambitious programme of reforms for which it was able to garner both national and international support. A $932m Extended Fund Facility was provided by the International Monetary Fund (IMF). The country was able to successfully conclude its economic reform program, which was supported by a $1.66bn Stand-By arrangement. Unemployment in the country is around 9.5%. A skilled labour force along with strong social and governance indicators are some of the country's assets. The country's government signed a preliminary agreement with China in April 2014 for the 1st phase of the Jamaican Logistics Hub, the aim of which is to position the island nation as the 4th node in the global logistics chain. On completion, the project is presumed to produce many jobs for Jamaicans, economic zones for global companies and much needed economic growth to reduce the country's huge debt-to-GDP ratio. Heavy seasonal rainfall makes the country susceptible to a range of natural hazards. The government faces a daunting task of maintaining fiscal discipline, while at the same time executing growth inducing policies and confronting a serious crime problem.
JapanJapan was the third-largest economy in the world by nominal GDP in 2018. Japan is a member of the G7. It is a leader in high-tech products, particularly in optical instruments and robotics. GDP per capita is $39,287 USD. While not rich in minerals, Japan has a highly educated labour force, and is ranked third on the Human Capital Index. Services is the largest sector (around 70 percent of GDP in 2017), followed by manufacturing (20 percent). In 2017, its largest export sectors were machinery (21.6 percent), services (20 percent), vehicles (18.9 percent), and electronics (13.4 percent). The largest individual exports were industrial machinery (15 percent), ICT services (11.3 percent), and cars (11 percent). Its main export partners are China (19.4 percent) and the USA (18 percent). Its leading import goods are crude oil (9.45 percent), petroleum gasses (5.86 percent), and coal (3.29 percent). Japan began to modernise its economy in the Meiji period and by World War 2 had industrialised its economy through the development of infrastructure and manufacturing. After the war, Japan enjoyed rapid economic growth by prioritising exports, a model since copied around the world. The "economic miracle" was facilitated through government-industry cooperation, the keiretsu commercial networks, a strong work ethic, domestic investment, economies of scale, a focus on quality, technological mastery, and initial US aid. Land reform and improved education also played an important role. From the 1980s, labour intensive industries were relocated offshore while Japanese companies focused on high-tech industries. An appreciation of the yen after the 1985 Plaza accords with the US, led to rapid outward FDI by Japanese companies and a property bubble in Japan. In 1991, the asset bubble collapsed, and the economy went into recession. Despite low interest rates and large government spending, the economy has been unable to replicate the high growth of previous periods. With low immigration and an ageing population, Japan has transformed itself into the world leader in industrial robots.
JordanThe Hashemite Kingdom of Jordan (official name) is an Arab country situated in the western part of Asia. The country's economy is one of the smallest in the Middle East with an inadequate supply of water, oil and other natural resources which explains the government's heavy dependence on foreign assistance. High unemployment rate and underemployment, government debt, budget deficit and current account deficit are other economic challenges faced by the government. Significant economic reforms were introduced by King Abdullah after he ascended the throne in 1999. The economic reforms included: expansion of foreign trade and privatisation of state-owned companies, which gave foreign investment a fillip and resulted in an average annual economic growth rate of 8% during the period 2004-2008. Over the last few years, however, the country's economy has slowed down. In 2016, foreign debt was equivalent to 93.4% of GDP. Simmering regional instability was behind this substantial increase. There had been a fall in tourism, lower foreign investment, a rise in military expenditure, attacks on the pipeline supplying gas to the kingdom, and expenses incurred on Syrian refugees. The country has the highest proportion of well-educated and highly skilled workers in the Middle East. The influx of 660,000 UN-registered refugees has led to an increase in competition for jobs between the refugees and Jordanian citizens. The Syrian Civil War had a severe impact on the country's top five contributing sectors to GDP: government service, finance, manufacturing, transport, tourism and hospitality. The country is completely dependent on imports for meeting its energy requirements, the majority of which comes from natural gas. In 2016, a $723 million Extended Fund Facility was agreed upon by Jordan and IMF aiming to reduce the country's debt-to-GDP ratio. The program was a success and it prevented the debt from rising above 95% in 2018.
Kazakhstan
Kenya
Kiribati
Korea, Dem. People's Rep. of
Korea, Republic ofSouth Korea was the 12th largest economy in the world by nominal GDP in 2018. GDP per capita is $31,363. The South Korean economy is one of the largest success stories of the 20th century with the country moving from poverty to the ranks of the OECD in less than 50 years. The country has limited natural resources but has a highly educated and hard-working workforce. South Korea ranks second on the World Bank's Human Capital Index. South Korea is a member of the G20, and OECD. Services was the largest economic sector in 2018 at 54 percent of GDP. This is lower than many other high-income countries but reflects the strength of South Korea's manufacturing sector (27 percent) rather than a lack of development in services. In 2017, the largest export sectors were electronics (27 percent), vehicles (15.8 percent), machinery (14.5 percent), services (12.7 percent), and chemicals (12.3 percent). The largest individual exports were electronic integrated circuits (15.6 percent), ICT services (6.7 percent), cars (5.7 percent), refined petroleum (4.5 percent), and cargo ships (3.8 percent). Its largest export partners were China (25 percent), USA (11.5 percent), Vietnam (7.9 percent), Hong Kong (7.3 percent), and Japan (4.5 percent). The largest goods imports were crude oil (12.6 percent), electronic integrated circuits (6.8 percent), petroleum gas (3.6 percent), and refined petroleum (3 percent). South Korea's economic growth post the Korean war has often been described as a miracle. Beginning in the 1960s, the government pursued an export-led growth strategy and kept wages under control. The government also targeted key industries which led to the emergence of the family-owned conglomerates known as chaebols (e.g. Daewoo, Hyundai, and Samsung). Growth surged under these policies and only deaccelerated in the 1990s as South Korea converged with advanced countries. The 1997-98 Asian financial crisis hit South Korea hard because of its companies' over-reliance on short-term debt. It forced a painful restructure of many of the chaebols but also led to many positive structural reforms in the economy including increased flexibility in the labour market, and investment and trade liberalisation. These reforms led to a strong return to growth. Growth decreased in Q4 2008 when the global financial crisis led to capital flight causing the won to depreciate and the stock market to fall by over 25 percent. Recession was avoided because fundamentals were sound, and the Bank of Korea moved quickly to address the crisis. Since then growth has been moderate reflecting the mature stage of the economy.
KuwaitKuwait was the 56th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $34,244 USD. It is situated on the Persian Gulf bordering Iraq and Saudi Arabia. It had the seventh largest proven oil reserves in the world in 2018. It was ranked 57th in the Economic Complexity Index in 2017. It is a member of the GCC and OPEC. Services was the largest economic sector in 2017 (59 percent of GDP), followed by manufacturing (7 percent), and agriculture (0.51 percent). In 2017, the largest export sectors were minerals (79 percent), services (9.07 percent), and chemicals (6.75 percent). The largest individual exports were crude oil (62 percent), refined petroleum (13 percent), and ICT services (4.9 percent). Its largest export partners were South Korea (17.2 percent), China (16.04 percent), India (11.3 percent), and Japan (10.6 percent). The largest goods imports were transmission apparatus for radio, telephones, and television (7.14 percent), and cars (6.61 percent). By the 19th century, Kuwait had become an important trading and pearling centre in the gulf region. Fearing an increase in Ottoman control, it became a British protectorate in 1899. After World War One, Ibn Saud attempted to capture Kuwait but after failing he imposed a trade blockade that lasted until 1937. Under the blockade and the Great Depression the economy suffered. In 1938, oil was discovered transforming the economy. The government used its new wealth to invest in infrastructure and to establish two key funds. In 1953, it established the world's first sovereign wealth fund, now called the Kuwait Investment Authority. And in 1961, it established a regional development fund, the Kuwait Fund for Arab Economic Development, which has now expanded its aid to over 100 countries. In 1961, Kuwait became an independent country as the British withdrew from the gulf states. The oil and gas industry were nationalised in 1975. The economy suffered during the early 1980s as the oil price fell, the 1982 Souk al-Manakh stock market crash, and the impact from the Iran-Iraq war. Similarly, the economy suffered in 1990 and 1991 after Iraq invaded in 1990. Following liberation, the economy rebounded and grew strongly in the 2000s as the oil price recovered. After the drop in the oil price in 2014-2015, the budget came under pressure. The government responded by further cuts to fuel and electricity subsidies and by agreeing with other GCC members to introduce an excise tax on tobacco and alcohol and a VAT. In 2017, the government launched the "New Kuwait Vision 2035" development plan. The plan aims to further diversify the economy building on earlier development plans.
Kyrgyz Republic
Lao People's Dem. Rep.
LatviaLatvia was the 97th largest economy in the world by nominal GDP in 2018. GDP per capita is $18,089 USD. Due to its geographic position, it is a strategic transit state in the Baltics, with Riga and Ventspils among the biggest seaports in the region. It is ranked 35th in the World Bank's Human Capital Index, and trade was at 118 percent of GDP in 2018. Its economy is also diverse with a ranking of 35th in the Economic Complexity Index (2017). It is a member of the EU and OECD. Services was the largest economic sector in 2018 (63.5 percent of GDP), followed by manufacturing (10.5 percent), and agriculture (3.3 percent). In 2017, the largest export sectors were services (28 percent), agriculture (26 percent), minerals (8.3 percent), and chemicals (7.7 percent). The largest individual exports were transport services (11.8 percent), ICT services (9.6 percent), refined petroleum (4.9 percent), travel and tourism (4.5 percent), and wood sawed lengthways (3.4 percent). Its largest export partners were Lithuania (15 percent), Estonia (10.7 percent), Russia (8.4) percent, and Germany (6.5 percent). The largest goods imports were refined petroleum (16.2 percent), cars (3 percent), and medicaments packaged (2.5 percent). After World War One and independence in 1920, Latvia rebuilt its manufacturing sector and completed land reforms. Agriculture and timber led the way through the depression. During World War Two, Germany invaded then Russia, with the Soviets maintaining control until 1991. Under Soviet control, agricultural was collectivised and major industries were developed to serve the USSR. Large numbers of Russians came to work in the factories. After independence, the economy experienced a sharp decline as the economy transitioned to a market economy and the Russian export market was lost. The economy was stabilised with the introduction of its own currency and reduced government spending. The government also pursued trade liberalisation, signing a free-trade agreement with the EU in 1994. The economy returned to growth in 1994 but was interrupted by a banking crisis in 1995. After wide-spread reforms during the accession process and accession to the EU in 2004, the economy grew rapidly. FDI fell during the global financial crisis and the economy contracted sharply in 2008-2009. Investors were concerned by an unsustainable current account deficit, the collapse of the real estate market, and high debt. Latvia asked the EU and IMF for help and following the pegging of the currency to the euro and austerity measures, the country has returned to growth.
LebanonAccording to the constitution of Lebanon, the country's economic system is free and ensures private initiative and the right to private property. The country's economy, most of which is dollarised, follows a laissez faire policy. Foreign investment is not restricted by the government and its intervention in foreign trade is also minimal. After the 2006 war, the economy went through a significant expansion and by 2018 the size of GDP increased to $54.1 billion (estimated). The country has a service-oriented economy, with banking and tourism the main growth sectors. The country's civil war (1975-90) destroyed its economic infrastructure, cut GDP by half and obstructed its position as a Middle Eastern entrepot and banking hub. Post war economic growth was made possible due to the presence of a financially sound banking system and strong medium-scale manufacturers, with international aid being one of the leading sources of foreign exchange. The Lebanese banking system has adopted a conservative approach and, consequently, the nation was unharmed by the 2007-10 financial crisis. Among the Arab states, the country has the largest population of skilled labour. Until July 2006, Lebanon's tourism sector was flourishing, but the month-long war — which erupted that year — severely damaged the tourism sector. A quarter of the country's national income goes to the top 1% rich adults, making Lebanon one of the most income-unequal countries in the world. The country has a large diaspora throughout the world and remittances received account for 1/5th of the economy. Lebanon has been ranked 137th out of 180 countries in Corruption Perception Index by Transparency International. The conflict in Syria has led to the influx of over 1 million refugees which has increased social tensions and intensified the competition for low-skilled jobs and public services. The deteriorating economic situation over the years led to nationwide protests in October 2019 against the government of Prime Minister Saad al-Harari.
Lesotho
Liberia
Libya
LiechtensteinSituated in the southwest of central Europe, Liechtenstein's economy splits almost equally between services and industry. The country is small and lacks natural resources. Never-the-less it has developed its economy along the lines of a progressive and highly-industrialised free enterprise. It has more registered companies than citizens and one of the highest GDP per capita in the world. The country has a strong service sector which employs a significant portion of the labour force, the majority (54%) of which are cross-border commuters from Austria, Germany and Switzerland. Being in a customs union with Switzerland, the country has adopted the Swiss franc as its national currency. It is also a member of the European Economic Area since 1995. The country imports more than 90% of its energy requirements. A low business tax rate (flat 12.5%) along with trouble-free incorporation rules have prompted many companies to establish their offices in the country, providing 30% revenue to the state coffers. The country has faced international pressure since 2008, specifically from Germany and the United States, to enhance transparency in its banking and taxation systems. A Tax Information Exchange Agreement was signed with the US in 2008. In the same year, Liechtenstein tax affairs unleashed a flurry of investigations by the governments of numerous countries against their citizens for tax evasion. The country was identified as an uncooperative tax haven by the Financial Action task Force (FATF) on money laundering of the Organisation for Economic Co-operation and Development (OECD). Liechtenstein was removed from the OECD's grey list after the country concluded 12 bilateral information sharing agreements. By 2010, the country had signed 25 Tax Information Exchange Agreements or Double Tax Agreements. A tax agreement was also signed with the European Union (EU) in 2015 to facilitate the automatic exchange of financial information.
LithuaniaLithuania was the 82nd largest economy in the world by nominal GDP in 2018. GDP per capita is $19,090 USD. It is the largest economy in the Baltics. It is ranked 37th in the World Bank's Human Capital Index, and trade was at 162 percent of GDP in 2018. Its economy is also diverse with a ranking of 34th in the Economic Complexity Index (2017). It is a member of the EU and OECD. Services was the largest economic sector in 2018 (61 percent of GDP), followed by manufacturing (17 percent), and agriculture (2.7 percent). In 2017, the largest export sectors were services (24 percent), agricultural (18 percent), chemicals (12.6 percent), minerals (11.3 percent), machinery (9 percent), and textiles (8.7 percent). The largest individual exports were transport services (14 percent), refined petroleum (10 percent), and ICT services (6.45 percent). Its largest export partners were Russia (14.9 percent), Latvia (9.5 percent), Poland (7.9 percent), and Germany (6.7 percent). The largest goods imports were crude oil (12 percent), cars (3.5 percent), and refined petroleum (3 percent). Lithuania regained its independence in 1918 after World War One. During World War Two it was invaded by the Soviets, Germans, and Soviets again. Under Soviet control, the mainly agricultural economy was industrialised with an emphasis on heavy industry. Lithuania was the first country to declare independence from the Soviet Union in 1990 and rapidly transitioned from a centrally planned to a market economy. Macroeconomic stabilisation policies, privatisation, and its own stable currency led to an open and rapidly growing economy. As a result Lithuania became known as a "Baltic Tiger". Foreign investment and EU funding aided in the transition. Lithuania joined the WTO in 2001, the EU in 2004, the euro zone in 2015, and the OECD in 2018. The economy was severely hit by the 2008-09 global financial crisis, but it has recovered to be one of the fastest growing in Europe. The economy benefits from levels of participation in tertiary education above the OECD average.
LuxembourgLuxembourg was the 70th largest economy in the world by nominal GDP in 2018. It has the highest GDP per capita in the world at $114,340 USD. It is a small country located between Belgium, France, and Germany. It has long specialised in financial services but has a diverse economy with a ranking of 34th in the Economic Complexity Index (2017). It is a very open economy with trade at 415 percent of GDP in 2018. It is a member of the EU, OECD, and the Benelux union with Belgium and the Netherlands. Services was the largest economic sector in 2018 (79 percent of GDP), followed by manufacturing (4.9 percent), and agriculture (0.28 percent). In 2017, the largest export sector was services (86 percent). The largest individual exports were insurance and finance (53 percent) and ICT services (25 percent). Its largest export partners were Germany (22 percent), Belgium (17 percent), France (11 percent), and the Netherlands (6 percent). The largest goods imports were cars (9.15 percent), and refined petroleum (6 percent). Luxembourg became independent from the Netherlands in 1839 following the independence of Belgium from the Netherlands. From the mid-1800s, a steel industry developed, taking advantage of iron ore deposits in the country. Immigration was also key as was capital from Germany, Belgium, and France. After World War Two, the economy grew strongly right up until the 1970's oil shocks with steel the main driver. Diversification began in the 1950s and became more important in the 1960s and 1970s when worldwide steel production increased. In a second wave of industrialisation, automotive, chemical, and electricity industries emerged. At this time, Luxembourg also began to develop the service sector with financial services emerging as the main engine of the economy by the 1980s as the steel industry was restructured. In recent years, Luxembourg and other low tax jurisdictions in Europe have come under pressure from the EU and OECD, and as a result Luxembourg has increased transparency. Luxembourg is currently focussing on innovation, with its space industry a prime example. Luxembourg has been at the heart of European integration. It formed an economic union with Belgium in 1921. The Netherlands joined the customs union in 1948 (Benelux). It was a founding member of the European Coal and Steel Community in 1952 and the European Economic Community in 1957.
Madagascar
MalawiMalawi was the 145th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $389 USD making it one of the least developed countries in the world. Poverty was over 50 percent in 2017. The population was 17.5m in 2018 and is expected to double by 2038. It is a landlocked country bordering Tanzania, Zambia, and Mozambique. It was ranked 125th in the World Bank's Human Capital Index and 94th in the Economic Complexity Index in 2017. It is a member of the African Union. Services was the largest economic sector in 2017 (52.4 percent of GDP), followed by agriculture (26 percent), and manufacturing (9.4 percent). In 2017, the largest export sectors were agriculture (82 percent) and services (11.2 percent). The largest individual exports were unmanufactured tobacco (56.2 percent), tea (7.5 percent), solid soybean residues (4.62 percent), and ICT services (4.56 percent). Its largest export partners were Belgium (17.3 percent), Germany (9.24 percent), Tanzania (6.32 percent), Russia (5.76 percent), and the USA (5.65 percent). The largest goods imports were packaged medicaments (6.63 percent). In the fifteenth century, Bantu tribes unified and formed the Maravi Confederacy, which included large parts of modern day Malawi, Zambia, and Mozambique. It lost its influence in the eighteenth century after attacks by Yao tribesman and the growth of the slave trade with the Europeans. In 1891, the area became a British protectorate after lobbying by the British explorer and missionary David Livingstone The British wanted to stop the slave trade and limit Portuguese influence. At this time, tea, coffee, and commercial tobacco were introduced. By 1913, Nyasaland (as Malawi was then called) was the largest tobacco producer outside the US. In 1954, Nyasaland and Northern Rhodesia (Zambia) were placed into a federation with Southern Rhodesia (Zimbabwe). Zimbabwe already had self-rule. In 1963, the federation was dissolved and Malawi became independent in 1964. The economy grew strongly during the 1960s and 1970s as it pursued a strategy based on agricultural exports and domestic and foreign investment. But in the early 1980s, droughts, declining terms of trade, and the civil war in Mozambique led to slow growth and high public debt. This slow growth and debt continued into the 1990s with real GDP annual growth averaging 1.6 percent between 1980 and 1994. The start of multi-party elections in 1994 and structural economic reforms and liberalisation in the 1990s has seen the economy improve in the 2000s, but a rapidly growing population and high poverty remain concerns. Tobacco remains the key to short-term growth but the country is also pursuing diversification with Vision2020 and the Malawi Growth and Development Strategies.
Malaysia
MaldivesMaldives was the 150th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $10,224 USD. It is a small archipelago of 1,190 islands in the Indian Ocean south-west of India and Sri Lanka. The population of 436, 330 (2017) is spread over 198 inhabited islands. The country has reached middle-income status through the growth of its tourism and fishing industries. Services was the largest economic sector in 2017 (67.4 percent of GDP), followed by agriculture (5.6 percent), and manufacturing (2.2 percent). In 2017, the largest export sectors were services (91 percent), minerals (4.4 percent), and agriculture (4.37 percent). The largest individual exports were travel and tourism (79 percent), transport services (8.4 percent), petroleum gasses (4.41 percent), and ICT services (3.36 percent). Its largest export partners were Sri Lanka (50.8 percent), the USA (10.23 percent), France (7.15 percent), and Germany (6.3 percent). The largest goods imports were transmission apparatus for radios, telephones, and televisions (2.48 percent), and refined petroleum (2.07 percent). The Maldives have been inhabited for over two thousand years. Evidence from the tenth century suggests that the population were seafarers and traded with East Africa, Arabia, India, Ceylon, and South East Asia. The population converted to Islam in the twelfth century following contact with Arab traders and became an Islamic Sultanate which lasted until 1961. In the sixteenth century the Portuguese briefly held the islands. After Britain captured Ceylon from the Dutch in 1796, British influence over the Maldives grew. In 1887, the Maldives became a British protectorate. It gained independence in 1965 and became a republic in 1968. The tourism industry was developed in the early 1970s with the first resort in 1972. Growth was good but it accelerated once an airport was built in the Maldives. Tourism has led to strong economic growth. GDP per capita has increased from around $200 in 1978 to $10,224 in 2018. The government has used tourism revenue to build infrastructure and to improve education and health. The government is also investing in measures to combat rising sea levels including the creation of new islands. The first multi-party elections were held in 2008 but after a coup in 2012, political freedoms were challenged. The election of a new president in 2018 brings the promise of greater political stability.
Mali
MaltaMalta was the 122nd largest economy in the world by nominal GDP in 2018. GDP per capita is $30,075 USD. It is a small island country strategically located in the Mediterranean Sea at a crossroads between Europe, North Africa and the Middle East. It has few natural resources and relies heavily on trade, particularly with Europe. Trade was at 268 percent of GDP in 2018. It is ranked 39th in the World Bank's Human Capital Index. It has been a member of the EU since 2004. Services was the largest economic sector in 2018 (75 percent of GDP), followed by manufacturing (8.8 percent), and agriculture (0.91 percent). In 2017, the largest export sectors were services (76.7 percent), electronics (7.5 percent), and minerals (5.2 percent). The largest individual exports were ICT services (43 percent), insurance and finance (18.7 percent), travel and tourism (9.7 percent), transport (5.6 percent), and electronic integrated circuits (5 percent). Its largest export partners were Italy (12 percent), Singapore (10.3 percent), China (9.3 percent), and Germany (9 percent). The largest goods imports were refined petroleum (28 percent), and cargo ships and similar vessels (21 percent). Malta became a British protectorate in 1814 and eventually became the base of the British Mediterranean fleet. Its strategic importance increased with the opening of the Suez Canal in 1869. By 1900, the economy was heavily dependent on British defence expenditure. After independence in 1964 and the departure of British bases, the government turned to an export led and FDI growth model. The manufacturing sector was developed, starting with labour intensive industries such as textiles before moving to more advanced manufacturing from the 1980s. Tourism was also developed, and financial services following deregulation and privatisations starting in the 1980s. The importance of services only increased after Malta joined the EU in 2004. The global financial crisis hit tourism and manufacturing leading to a recession but public debt was relatively low and the economy proved resilient. Post crisis, the economy recovered strongly with among the highest growth rates in Europe. Malta is also a leader in the development of blockchain and cryptocurrency services.
Marshall Islands
Mauritania
MauritiusMauritius was the 126th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $11,239 USD. It is located in the Indian Ocean east of Madagascar. Its many ethnicities and languages reflect a rich colonial history. It was ranked 51st in the World Bank's Human Capital Index and 80th in the Economic Complexity Index in 2017. It is a member of the African Union. Services was the largest economic sector in 2018 (67.4 percent of GDP), followed by manufacturing (11.4 percent), and agriculture (2.8 percent). In 2017, the largest export sectors were services (56.9 percent), agriculture (17.5 percent), and textiles (13.8 percent). The largest individual exports were travel and tourism (32.6 percent), ICT services (14.8 percent), transport services (7.14 percent), prepared or preserved fish (5.95 percent), and sugarcane and sucrose (5.83 percent). Its largest export partners were France (13.96 percent), the USA (12.11 percent), UK (8.88 percent), South Africa (7.22 percent), Italy (6.9 percent), and Madagascar (6.03 percent). The largest goods imports were refined petroleum (9.2 percent), frozen fish excluding fillets (5.2 percent), fixed wing aircraft >15k kgs (3.92 percent), and cars (3.8 percent). Mauritius was discovered by the Portuguese in 1505 but was likely already known to Arab traders. The Dutch settled the island in 1598 but left in 1710. They introduced sugarcane and slaves from Africa. It was settled by France in 1715 who expanded the sugar plantations and brought in more African slaves to work the plantations. It was captured by Britain in 1810 during the Napoleonic wars. The sugar industry flourished with access to the British empire and expanded across the island. Indentured workers were brought in from India to work in the sugarcane plantations following the abolition of slavery. Mauritius gained independence in 1968. Growth has been strong since independence with stable politics attracting foreign investment. Sugar was the key industry for Mauritius up until the 1980s when world sugar prices fell. In the 1980s and 1990s, the export processing zones and diversification policies, which were introduced in the 1970s, led to the growth of manufacturing sector i.e. textiles. Tourism began in the 1950s but has increased in importance over the years. In the late 1980s, Mauritius also began to develop financial services in off-shore banking. Despite the long period of British rule, French cultural and political influence remains strong. English is the official language but Kreol is a common language among the many ethnic groups and French is widely understood.
MexicoMexico is the 19th largest economy in the world by nominal GDP. It has a GDP per capita of $9,698 USD. Mexico is a member of the G20 and the United States – Mexico – Canada trade agreement (USMCA), formerly known as NAFTA. The Mexican economy, and particularly the car industry, is highly integrated with the USA. 72 percent of its exports went to the US in 2017 and Mexico is the USA's second largest export destination (15.7 percent). Services are the largest sector (60 percent in 2018), followed by manufacturing (17 percent), and agriculture (3.3 percent). Exports are significant representing 39 percent of GDP. The largest export sectors in 2017 were vehicles (23.4 percent), electronics (21.24 percent), machinery (18.53 percent), and agriculture (8.27 percent). The largest individual exports were cars (9.37 percent), car parts (5.75 percent), transport vehicles (5.46 percent), travel and tourism (4.79 percent), computers (4.54 percent), and crude oil (4 percent). After the US, Canada is next large export partner with 6.23 percent. Its largest import goods are parts of motor vehicles (5.62), refined petroleum (5 percent), electronic integrated circuits (4.9 percent), and parts and accessories for office machines (4.3 percent). After the Mexican revolution the economy grew rapidly from the 1930s to the 1970s as the government pursued industrialisation and import-substitution. The government also redistributed land to peasants, nationalised oil and railroad companies, and upgraded infrastructure. With the discovery of large new oil reserves in the 1970s, the government increased social spending, but when the price of oil fell from 1981, Mexico found itself in a debt crisis in 1982. Economic reforms including privatisation in the 1980s increased growth, but the country experienced another debt crisis in 1994. The economy returned to growth with US help, and the economy also began to benefit from NAFTA (1994). Since the 1994 crisis, the economy has enjoyed consistent growth largely due to improvements in macroeconomic fundamentals. The global financial crisis hit hard however with GDP falling by more than 6 percent in 2018. Recently, the government has introduced important tax, pension, and judicial reforms, and has started to liberalise the oil industry in order to attract private investment.
Micronesia (Federated States of)
Monaco
MongoliaMongolia was the 130th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $4,104 USD. After transitioning from a command economy and a Soviet satellite, foreign investment in the mining industry has transformed the economy. It was ranked 52nd in the World Bank's Human Capital Index and 93rd in the Economic Complexity Index in 2017. Services was the largest economic sector in 2018 (40 percent of GDP), followed by agriculture (10.9 percent), and manufacturing (9.2 percent). In 2017, the largest export sectors were minerals (70.63 percent), services (14.27 percent), stones (4.67 percent), textiles (3.71 percent), and agriculture (3.68 percent). The largest individual exports were coal (32.8 percent), copper ore (24.54 percent), travel and tourism (5.84 percent), crude oil (5.33 percent), transport services (4.73 percent), gold (4.65 percent), and iron ore (4.07). Its largest export partners were China (89.12 percent) and Switzerland (5.43 percent). The largest goods imports were refined petroleum (19.5 percent), cars (6.06 percent), cars (4.28 percent), and electrical energy (3.16 percent). After two hundred years of Chinese rule, Mongolia declared independence in 1911 but by 1915 this had turned into autonomy within China. In 1921, the Soviet Union invaded and Mongolia became a loyal satellite. The Chinese recognised Mongolia's independence in 1946 after a referendum. With assistance and loans from the Soviet Union, Mongolia developed a large industrial sector based around the processing of raw materials. Following the demise of the Soviet Union, the economy went into a deep recession. In the 1990s, pro-market reforms and privatisations led to strong productivity and economic growth but there were also recessions caused by natural disasters and external shocks, such as the Asian Crisis. The economy grew strongly in the 2000s because of high copper prices and new gold production. The global financial crisis led to a small contraction and a Stand-by Arrangement with the IMF but the economy recovered. In 2014, FDI fell when confidence among foreign investors was shaken by policy missteps and a government dispute with investors over the Oyu Tolgoi mine. 2014 also saw a fall in commodity prices exposing Mongolia's large external debt and budget deficit. Mongolia secured an assistance package from the IMF and a host of international creditors in May 2017 and is responding with new reforms. Fintech and other tech startups promise a new driver of growth as Ulaanbaatar develops a thriving start-up scene with the help of returning emigrants.
Montenegro
Montserrat
MoroccoMorocco was the 58th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $3,238 USD. Morocco is in North-West Africa. It is a Kingdom with a parliamentary democracy. It was ranked 98th in the World Bank's Human Capital Index and 99th in the Economic Complexity Index in 2017. Personal remittances were 5.8 percent of GDP in 2018. It is a member of the African Union. Services was the largest economic sector in 2017 (50 percent of GDP), followed by manufacturing (15.7 percent), and agriculture (12.4 percent). In 2017, the largest export sectors were services (37 percent), agriculture (14.2 percent), textiles (12.83 percent), and electronics (10.6 percent). The largest individual exports travel and tourism (16 percent), ICT services (14 percent), transport services (6.73 percent), insulated electrical wires (6.5 percent), and cars (6.2 percent). Its largest export partners were Spain (23.6 percent), France (19.1 percent), the USA (4.1 percent), Germany (3.8 percent), and Italy (3.65 percent). The largest goods imports were refined petroleum (9.32 percent), cars (4.31 percent), and petroleum gasses (3 percent). In the 18th century both Spain and France vied for influence over Morocco. In 1912, it became a French protectorate. Under the French, agriculture and administration developed but industry grew slowly. Morocco gained independence from France in 1956. After independence, the government pursued a nationalisation and import-substitution strategy. Between 1965 and 1972, the government invested heavily in infrastructure for agriculture. Between 1973 and 1977, nationalisation was intensified. These policies combined with droughts in the 1970s led to a rapid increase in public debt. In the 1980s, Morocco responded to the high debt with austerity measures and pro-market reforms, overseen by the IMF. In the 2000s and 2010s, the government diversified the economy and invested in infrastructure, including port facilities. It also entered into a free trade agreement with the EU. New industries include aerospace, automotive, and phosphates. Public debt began to increase again from 2008. The government has responded by eliminating subsidies for gasoline, diesel, and fuel oil and by reducing general expenditure. The country fared well during the upheaval of the Arab Spring in surrounding countries. Growth has been enabled by continued reforms and political reforms.
MozambiqueMozambique was the 124th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $490 USD. In the 1990s, Mozambique strongly rebounded from a damaging 15-year civil war. Today it is developing a range of resources including coal, aluminium, natural gas, and titanium. It was ranked 148th in the World Bank's Human Capital Index and 114th in the Economic Complexity Index in 2017. It is a member of the African Union. Services was the largest economic sector in 2018 (46.6 percent of GDP), followed by agriculture (21.4 percent), and manufacturing (10.7 percent). In 2017, the largest export sectors were minerals (45.1 percent), metals (18.75 percent), agriculture (17.8 percent), and services (9.98 percent). The largest individual exports were coal (20.53 percent), unwrought aluminium (15.9 percent), coking coal (8.97 percent), transport services (6.8 percent), and petroleum gasses (5.4 percent). Its largest export partners were India (15.7 percent), South Africa (15 percent), China (8.5 percent), and Italy (7.3 percent). The largest goods imports were refined petroleum (16.2 percent), chromium ore (6.62 percent), and aluminium oxide (4.3 percent). From the 15th century Portugal began establishing forts and settlements along the coast of Mozambique. The 1884 Berlin conference allotted Mozambique to Portugal. Portugal then turned their attention to the interior with a series of military campaigns and land concessions. In 1951, it was declared a Portuguese colony and settlers from Portugal were encouraged. In the 1960s, several independence groups combined to form FRELIMO. Mozambique became independent in 1975, following the 1974 revolution in Portugal. Between 1977 and 1992, the country was wracked by civil war. The rebels were sponsored by Rhodesia and later South Africa. Mozambique was already among the poorest countries at independence. The civil war further impoverished the country. Reforms from 1987 brought macroeconomic stability. The end of the war and multiparty elections in 1994 has largely brought political stability. Foreign aid and FDI helped to develop the mining industry while the government invested in infrastructure and megaprojects. As a result, the economy began to accelerate. Between 1994 and 2015, annual real GDP growth averaged 8.4 percent. Public debt also decreased in the 2000s because of debt forgiveness, restructuring, and growth. Since 2015, growth has slowed with the fall in commodity prices, a decrease in FDI, a regional drought, and the revelation of hidden public debt in 2016. Growth should increase again in the future with further development of mining resources and downstream industries. The recent emergence of Islamic insurgents in the gas-rich north is a risk to growth.
MyanmarMyanmar is the 69th largest economy by nominal GDP. GDP per capita is $1,326 USD. The country is rich in natural resources but since independence has suffered under long periods of military rule. It was ranked 107th in the World Bank's Human Capital Index. It is a member of ASEAN. Services accounted for 40.4 percent of GDP in 2017, followed by manufacturing (23.9 percent), and Agriculture (23.3 percent). The largest export sectors in 2017 were minerals (23.4 percent), services (22.5 percent), textiles (19.3 percent), and agriculture (18.7 percent). The largest export products were liquefied natural gas (14.65 percent), travel and tourism (12.27 percent), ICT services (9.3 percent), and dried legumes (4.5 percent). Its largest export partners were China (31 percent), Thailand (18.85 percent), Japan (6.9 percent), Singapore (5.15 percent), and Indonesia (5.15 percent). The largest import goods were refined petroleum (11 percent), transmission apparatus for radio, television, and telephones (4.77 percent). In 1824, the Konbaung dynasty captured the Indian state of Assam, which led to three wars with the British. At the end of the third war in 1885, the British annexed Myanmar and made it part of British India. Under the British, Myanmar became a leading exporter of rice. During WW2, Japan occupied Myanmar. After the war, the British retuned. In 1947, Myanmar regained its independence. After a second coup in 1962, the military took control. They implemented the "Burmese Way to Socialism". This included mass nationalisation of industries and the rejection of foreign influence and investment. There was also ongoing conflict with minority ethnic groups. The policies had a negative effect on the economy. Rice exports plummeted and the black market grew. In 1988, the people protested against conditions. A group of military commanders reasserted control (SLORC). In 1989, they placed opposition leader Aung San Suu Kyi under house arrest. And they refused to give up power after Aung San Suu Kyi's party won the elections in 1990. In 2011, the military introduced several economic and political reforms. They also opened the country up to investment. In 2015, general elections were held and Aung San Suu Kyi's party, the National League for Democracy came to power. In January 2020, the International Court of Justice ordered Myanmar to prevent the genocide of the Rohingya minority. International concerns were heightened in 2017 after large numbers of Rohingya fled into India following persecution from the Myanmar military.
Namibia
Nauru
NepalNepal is a South Asian nation interlocked between the two Asian behemoths, China and India. The foundation of present-day Nepal was laid in the mid-18th century by a Gorkha king, Prithvi Narayan Shah. With a quarter of its population living below the poverty line, the country is one of the least developed in the world. Political shenanigans within the country have affected and muddled up the economic development. Agriculture is the pillar of the economy with two thirds of the country's population getting their livelihood from it. The country's GDP is highly reliant on the remittances of foreign workers (19th largest in the world). Tourism, garments, food and beverages, metal manufacturing, herbs are major industries driving the country's economic growth. Foreign aid forms a significant part of the country's development budget. In 2018 its growth rate was 6.7% and was expected to reach 7.1% in 2019. Just like its neighbour India, Nepal also adopted the five-year plan programme to give a fillip to its economy. The country has made significant strides in eradicating poverty (15% in 2010 to 9.3% in 2018), sectors like child mortality, electricity, nutrition, improved flooring and assets have shown progress. Not much progress has been seen in social services and infrastructure. The country has been bestowed with enormous hydropower resources (42,000MW), which has not been tapped into much. The country signed a $500 million agreement with the United States to enlarge its electricity infrastructure and help in maintaining its transport infrastructure. India, Turkey and United States are major export partners. India and China are its major import partners. The country main exports are petroleum goods, gold and machinery. Due to its rugged topography, the country has been prone to several natural disasters such as earthquakes which have led to the destruction of infrastructure and has made the process of economic development difficult. Corruption and recurrent changes in political leadership have also stalled the economic development process.
NetherlandsThe Netherlands was the 17th largest economy in the world by nominal GDP in 2018. GDP per capita is $53,024 USD which is above the average for the OECD and High Income countries. It is an important transport hub for Europe with Rotterdam being the largest port in Europe and Amsterdam among the biggest airports. It is an open economy with a long history of innovation in finance and trade, including the first stock market. It is ranked 6th on the World Bank's Logistics Performance Index. Trade was at 158 percent of GDP in 2018. It is ranked 8th in the World Bank's Human Capital Index and 18th in the Economic Complexity Index (2017). It is a member of the EU, OECD, and the Benelux union with Belgium and Luxembourg. Services was the largest economic sector in 2018 (70 percent of GDP), followed by manufacturing (11.1 percent), and agriculture (1.63 percent). In 2017, the largest export sectors were services (24.3 percent), agriculture (15.4 percent), chemicals (14.97 percent), and machinery (14.7 percent). The largest individual exports were ICT services (16.4 percent), refined petroleum (6.1 percent), and transport services (4.55 percent). Its largest export partners were Germany (20 percent), Belgium (13.3 percent), the UK (9.2 percent), and France (7.7 percent). The largest goods imports were crude oil (7.6 percent), refined petroleum (7.16 percent), transmission apparatus for radio, telephone, and television (4.13 percent), and computers (3.1 percent). During the 1600s, the Dutch economy grew rapidly and built a maritime trading empire. It was a "Golden age" of trade, innovation, and art. War in the 1700s, French occupation between 1795 and 1810, and vested economic interests led to a slowdown in growth and innovation until industrialisation. From the 1860s the economy industrialised rapidly with the development of railroads, textiles, and food processing. The country was neutral during World War One but suffered from the decline in trade. The economy was ravaged by World War Two but recovered strongly through the US Marshall Plan, fiscal prudence, low wages, and increased capital intensity. The discovery of natural gas in 1959 boosted the economy but also led to an increase in government spending and the stagnation of other industries in the 1970s which left the economy vulnerable to the 1970s oil shocks. The early 80s saw recession and unemployment before fiscal reform, wage moderation, and labour market reforms helped the economy to recover. Between 1996 and 2000, economic growth was well above the European average and the turnaround from the 1980s was being described as a "miracle". Growth slowed down in 2001 as part of the global economic slowdown, recovered in 2006 and 2007, before being hit by the global financial crisis. Further government reforms saw the economy recover in 2014 and in 2019 the country was ranked as the most competitive in Europe by the World Economic Forum.
New Caledonia
New ZealandNew Zealand was the 51st largest economy by nominal GDP in 2018. GDP per capita was $41,966 USD. It is a small island nation in the Pacific. It was ranked first in the World Bank's 2020 Ease of Doing Business report, third in the Heritage Foundation's 2019 Index of Economic Freedom, 20th in the World Bank's 2017 Human Capital Index, and 41st in the 2017 Economic Complexity Index. It is a signatory to the CPTPP and the RCEP trade agreements. Services accounted for 65.6 percent of GDP in 2016, followed by manufacturing (10 percent), and agriculture (6.6 percent). The largest export sectors in 2017 were agriculture (50.5 percent), services (29.7 percent), and chemicals (4.95 percent). The largest exports were travel and tourism (19.2 percent), concentrated milk (9 percent), ICT services (5.35 percent), butter (4.14 percent), and lamb (4.05 percent). Its largest export partners are China (21.95 percent), Australia (15.03 percent), and the USA (10.2 percent). The largest import goods were cars (8.56 percent), crude oil (5.14 percent), refined petroleum (3.39 percent), and motor vehicles for transporting goods (3.14 percent). Polynesian explorers settled New Zealand around the 14th century. Dutchman Abel Tasman was the first European to discover New Zealand in 1642. He was followed by British James Cook in 1769. European whalers, sealers, and missionaries began to arrive in New Zealand in the early 19th century. The Maori chiefs reacted to European settlement by declaring the independence of the United Tribes of New Zealand in 1835. In 1840, Britain signed the Waitangi treaty with around 540 Maori chiefs. It established British sovereignty over New Zealand while providing protection and British citizenship for the Maori people. In the 1860s a series of gold rushes increased immigration and the economy boomed. But the gold soon ran out and in 1879, a British depression spread to New Zealand. By the 1890s, agriculture emerged as the main export industry with refrigeration allowing the export of meat. Britain was the main recipient and demand increased with WW1. During the Great Depression, agricultural prices fell so the government attempted to diversify the economy. It implemented an import substitution policy for manufacturing which led to the development of local industry. After WW2, agriculture boomed again. From the 1950s, New Zealand introduced several trade protection measures for agriculture including price equalisation schemes. By the 1980s, the economy had stagnated and public debt had become a problem. Trade to Britain had also been lost after Britain joined the European Economic Community in 1973. In 1984, a new government liberalised the economy and removed trade protection. Since then the economy has only experienced a decrease in real GDP in 1991 and 2008. In 2008, New Zealand signed a free trade agreement with China and has benefitted with a boom in dairy exports to China. New Zealand is the world's biggest exporter of milk. In 2019, the government introduced an economic plan to guide greater diversification and innovation.
Nicaragua
Niger
Nigeria
Niue
North Macedonia
Northern Mariana Islands
Norway
OmanOman was the 67th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $16,419 USD. It is situated on the south-eastern part of the Arabian Peninsula. Under the late Sultan, Qaboos bin Said al Said, the country was known for its important diplomatic role in the Middle East. Trade was at 108 percent of GDP in 2018. It was ranked 55th in the World Bank's Human Capital Index and 64th in the Economic Complexity Index in 2017. It is a member of the GCC. Services was the largest economic sector in 2018 (46.6 percent of GDP), followed by manufacturing (38.2 percent), and agriculture (2.2 percent). In 2017, the largest export sectors were minerals (62.72 percent), services (10.86 percent), chemicals (9.3 percent), metals (5.6 percent), and agriculture (4.8 percent). The largest individual exports were crude oil (41.15 percent), LNG (9 percent), refined petroleum (7.64 percent), travel and tourism (4.74 percent), and transport services (4.47 percent). Its largest export partners were China (38.6 percent), India (8.9 percent), South Korea (6.74 percent), the UAE (6.67 percent), and Japan (5.42 percent). The largest goods imports were machinery (17.2 percent), vehicles (15.6 percent), agriculture (14.29 percent), metals (11.58 percent), minerals (11.15 percent), and chemicals (11.06 percent). The capital of Oman, Muscat, was a key city on the maritime silk route since the 2nd century. After struggles with the Portuguese and the Ottomans between the 16th and 18th centuries, Oman emerged as a maritime power in the 18th century and established an empire that at its height stretched from modern day Pakistan to Zanzibar. In 1856, the empire was split between two heirs and in 1891 the Sultanate of Muscat and Oman became a British protectorate. The country entered the modern era with the discovery of oil in 1964 and the ascension of Sultan Qaboos, who replaced his father as Sultan in 1970. Qaboos modernised the country, building infrastructure and beginning efforts to diversify the economy from oil and gas. The fall in the oil price from 2014, have pushed Oman into fiscal deficit. In 2017, the government launched the Vision 2040 roadmap. The roadmap sets 13 economic and social goals, including the goal of "Economic Diversification and Fiscal Sustainability". Tourism, shipping, entrepreneurship and mining have been identified as key areas. In 2018, large new gas reserves were discovered in Mabrouk North East. Gas could eventually replace oil in terms of economic importance.
PakistanThe Islamic Republic of Pakistan gained independence in 1947 and since then has faced decades of internal political squabbles and meagre levels of foreign investment which has resulted in the country's underdevelopment. As a developing country, Pakistan has the potential of becoming one of the world's largest economies in the 21st century. In the year 2017, Pakistan's GDP in Purchasing Power Parity (PPP) crossed $1 trillion, making it the 24th largest economy in the world. The IMF revised the country's growth rate in May 2019 and predicted it to be 2.9%, the lowest in the South Asian region. Since 2015, the country's currency, called the Pakistani Rupee (PKR) has been stable against the US dollar, however it plummeted about 10% during the year 2017-18. The country's agricultural sector accounts for 18.5% of GDP and the majority of the population is dependent on it. It employs a significant portion of country's labour force (37.4%) and is also the biggest source of foreign exchange earnings. More than half of the country's export earnings comes from the textile sector. Since year 2013-14, exports have been on the decline. On the other hand, imports have increased at a faster rate on account of increased economic activity as part of the China Pakistan Economic Corridor (CPEC). Concessionary loans are provided from China under the Belt and Road Initiative (BRI) for the development of CPEC. Pakistan believes that the investments in energy and other infrastructure projects will lay a solid foundation for an increase in exports, which in turn will enable the GDP growth rate of over 6%. The country receives economic aid in the form of loans and grants, which is the main source of funding for the Pakistani economy. In May 2019, the country received its 22nd bailout package of US$6 billion from the IMF. Pakistan still has a lot of issues to address such as investment in healthcare and education, sanitation, widening of country's tax base (it has a low tax/GDP ratio), improving the business environment, climate change and natural disasters.
Palau
PanamaPanama was the 73rd largest economy in the world by nominal GDP in 2018. Its GDP per capita was $15,575 USD. Panama has enjoyed strong economic growth over the past 15 years because of strong private investment and the widening of the Panama Canal. It was ranked 91st in the World Bank's Human Capital Index and 56th in the Economic Complexity Index in 2017. It is a member of the regional trading group SICA. Services was the largest economic sector in 2018 (65 percent of GDP), followed by manufacturing (5.8 percent), and agriculture (2.2 percent). In 2017, the largest export sectors were services (72.1 percent), minerals (6.9 percent), and agriculture (5.5 percent). The largest individual exports were transportation services (34.7 percent), travel and tourism (24 percent), insurance and finance (8 percent), ICT services (5.5 percent), and refined petroleum (3.9 percent). Its largest export partners were Ecuador (17.2 percent), Japan (15.1 percent), Guatemala (10.6 percent), and the USA (8.1 percent). The largest goods imports were cargo ships and similar vessels (18.8 percent), refined petroleum (14.37 percent), and crude oil (7.27 percent). The Spanish settled Panama in the 16th century. For over 300 years it was a key strategic colony for the Spanish. Panama became independent from Spain in 1821 and joined the Republic of Gran Colombia with modern day Colombia, Ecuador, and Venezuela. When Gran Colombia dissolved in 1831, it remained with Colombia. In 1903, it separated from Colombia after strong encouragement from the US. Between 1904 and 1914, the US Army Corps of Engineers built the Panama Canal. The US retained sole control over the canal and the Panama Canal Zone until 1979 and the Carter-Torrijos treaty. Joint control was then maintained until 1999, after which Panama took sole control. In 1989, the US invaded Panama to restore democratic government, reduce drug trafficking, and ensure the neutrality of the canal. Following the removal of the US economic embargo, private investment soared driving rapid economic growth. The successful 2006 referendum on widening the canal encouraged further international investment. Panama has also quickly grown to become the largest exporter of financial services in the Caribbean and Latin America. Reforms made between 2009 and 2014 transformed the banking sector and made it a regional banking hub. Between 2004 and 2019, Panama was among fastest growing economies in the world, with average annual real GDP growth of 6.8 percent. The growth in financial services also saw growth in money laundering and tax haven activities as underlined by the 2016 Panama Papers. The government strengthened AML/CFT and tax transparency measures in 2015 and has been increasing oversight efforts since 2016. In 2016, the widening and deepening of the canal locks were completed, allowing the passage of the New-Panamax class of container ships. This has increased Panama's revenue from the canal. In 2019, production began in the Cobre Panama copper mine, which will further boost the economy.
Papua New GuineaPapua New Guinea (PNG) has a diverse and a rugged topography. This latter characteristic means that its vast natural resources are not easily extracted. Infrastructure development is costly and land tenure is an issue. The country has a natural gas reserve of 155 billion cubic metres. PNG is mostly underdeveloped and has a low level of human development. The industrial sector (excluding mining) doesn't contribute much to the country's GDP and the economy is very much dependent on the import of manufactured goods. The majority of the labour force is employed in the agricultural, forestry and fishing sector, with agriculture alone providing subsistence livelihood for 85% of the nation's population. A significant portion (72%) of the country's export earnings come from mineral deposits. The country receives financial aid from several countries (Japan, China, Australia), and organisations (European Union (EU) bodies, IMF and World Bank organisations, with Australia being the largest aid provider. The PNG LPG joint venture is the largest private-sector investment in the country's history. Owing to the LPG project's success, French gas and oil major, Total S.A. is expected to start construction on the Papua LPG project by 2020. The country has the potential to generate 2.5 GW of renewable energy, but only a meagre 2% of it has been exploited. Australia, Singapore and Japan are the major export partners whereas Australia, China and Singapore are the major import partners. The government's long- and short-term policy documents accentuate the need for a more diverse economy – which should include sustainable industries and prospects of broad-based employment. The government faces numerous challenges such as law and order and the above-mentioned land tenure problems. Maintaining investor confidence is equally important. A first ever national trade policy (2017-2032) was unveiled which explains the goal of increasing exports by maximising trade and investment, reducing imports and increasing foreign direct investment (FDI).
Paraguay
PeruPeru was the 49th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $6,947 USD. Peru is the world's second largest producer of silver and copper. It was ranked 72nd in the World Bank's Human Capital Index and 81st in the Economic Complexity Index in 2017. It is a member of the regional trading group Mercosur. Services was the largest economic sector in 2017 (54 percent of GDP), followed by manufacturing (12.8 percent), and agriculture (6.7 percent). In 2017, the largest export sectors were minerals (42.38 percent), agriculture (19.58 percent), services (13.84 percent), and stones (10.67 percent). The largest individual exports were copper ore (24.15 percent), gold (9.52 percent), travel and tourism (7.33 percent), refined petroleum (5.17 percent), and zinc (4.34 percent). Its largest export partners were China (28.5 percent), the USA (14.59 percent), and Spain (5.34 percent). The largest goods imports were refined petroleum (7.31 percent), crude oil (5.94 percent), cars (4.28 percent), and transmission apparatus for radio, telephones, and television (3.51 percent). Peru declared independence in 1821 after pressure from Buenos Aires with loyalists finally defeated in 1824. Between 1840 and 1870, the economy boomed because of the discovery of guano (fertiliser from bird-droppings). But by the end of the boom the government was under fiscal pressure, which was compounded by the "War of the Pacific" with Chile between 1879 and 1884. Following the war and up until the Great Depression, a commodity boom and administrative and macroeconomic reforms led to strong economic growth and diversification. Free trade in the 1950s gave way to import substitution in the 1960s as the population grew and migrated to the larger cities on the coast. In 1968, the military took power. They nationalised several industries and increased state intervention but heavy borrowing and the 1970s oil price shocks led to high public debt and hyper-inflation by the 1980s. In the 1990s, stabilisation policies and trade liberalisation led to strong growth which continued in the 2000s with the help of a global commodities boom and accompanying FDI in the mining industry.
Philippines
PolandPoland was the 21st largest economy in the world by nominal GDP in 2018. Its GDP per capita was $15,424 USD. It is a large country in central Europe with the fifth largest population in the EU (excluding the UK) in 2018. It was ranked 30th in the World Bank's Human Capital Index and 23rd in the Economic Complexity Index in 2017. It is a member of the EU and OECD. Services was the largest economic sector in 2018 (56 percent of GDP), followed by manufacturing (18 percent), and agriculture (2.4 percent). In 2017, the largest export sectors were services (21 percent), agriculture (15 percent), machinery (12.8 percent), vehicles (11.2 percent), and chemicals (11.1 percent). The largest individual exports were ICT services (10.2 percent), transport (5.6 percent), travel and tourism (4.6 percent), and motor vehicle parts (4.6 percent). Its largest export partners were Germany (27 percent), Czechia (6.3 percent), the UK (6 percent), and France (5.5 percent). The largest goods imports were cars (3.6 percent), crude oil (3.4 percent), and part of motor vehicles (3.2 percent). Poland regained independence in 1918 following World War One. After World War Two it came under Soviet control. The economy was transformed from agriculture and mining to an industrial base. In 1989, the Solidarity movement won in partially-free elections effectively ending Soviet control. Since then the economy has grown at around 4 percent per year and even avoided recession during the global financial crisis. Growth was initially unlocked by prudent fiscal policy, the taming of hyperinflation, and a range of free-market reforms including large-scale privatisations, the removal of subsidies and price controls, and a convertible currency. This then led to increases in labour productivity and internal consumption. After joining the EU in 2014, the boom continued as exports and investments increased, leading to further increases in employment and consumption. In 2018, FTSE Russell reclassified Poland from an "emerging" to "developed" market.
PortugalPortugal was the 47th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $23,146 USD. Portugal is the westernmost country in mainland Europe. It was ranked 16th in the World Bank's Human Capital Index and 48th in the Economic Complexity Index in 2017. It is a member of the EU and OECD. Services was the largest economic sector in 2018 (65 percent of GDP), followed by manufacturing (12.4 percent), and agriculture (1.96 percent). In 2017, the largest export sectors were services (35.6 percent), agriculture (12.7 percent), textiles (10.7 percent), chemicals (7.85 percent), and vehicles (7.5 percent). The largest individual exports were travel and tourism (17.9 percent), ICT services (9.5 percent), and transport services (7.7 percent). Its largest export partners were Spain (21.4 percent), France (11.7 percent), Germany (11.05 percent), the UK (6.08 percent), and the US (5.45 percent). The largest goods imports were crude oil (6.68 percent), cars (5.97 percent), parts of motor vehicles (2.53 percent), and packaged medicaments (2.48 percent). Portugal was among the richest countries in the world in the seventeenth and eighteenth centuries, but declining growth and a growing population saw a decline in relative income levels during the nineteenth century. Strong relative growth only reemerged in the 1950s as the economy liberalised trade. The economy suffered in the 1970s because of a policy of nationalisation in the aftermath of the 1974 revolution. However the revolution and the threat of communist rule also prompted the EEC to court Portugal, with Portugal joining in 1986. As a result, the economy grew strongly in the 1980s and 1990s. The economy struggled in the 2000s because of increased international competition and increased competition from within the EU after Portugal adopted the euro. One of the key structural problems was low formal education which resulted in low labour productivity and a tendency towards labour intensive industries, such as textiles. Portugal was hit hard by the global financial crisis, experiencing recession in 2009. In 2011, it received an EU-IMF bailout, which included austerity measures. Portugal exited the bailout program in 2014 and by 2015 growth had returned. The economy has recovered gradually from the crisis with increases in productivity, exports, and private consumption. Key reforms included labour market reforms and better business regulations. A tourist boom has also helped. The government has also been able to reduce its debt but needs to remain vigilant. In 2018, Portugal repaid the IMF bailout ahead of schedule.
QatarQatar was the 52nd largest economy in the world by nominal GDP in 2018. Its GDP per capita was $69,026 USD, which is above the OECD and High Income Country average. It is a small peninsula in the Persian Gulf bordering Saudi Arabia and just south of Bahrain. It had the third largest proven gas reserves in the world in 2018. It was ranked 60th in the World Bank's Human Capital Index and 42nd in the Economic Complexity Index in 2017. It is a member of the GCC and OPEC. Services was the largest economic sector in 2017 (42.6 percent of GDP), followed by manufacturing (9.2 percent), and agriculture (0.17 percent). In 2017, the largest export sectors were minerals (65.82 percent), services (23.2 percent), and chemicals (7 percent). The largest individual exports were LNG (31.4 percent), crude oil (18.6 percent), transport services (13.4 percent), refined petroleum (9.6 percent), and travel and tourism (7.8 percent). Its largest export partners were South Korea (18.3 percent), Japan (17.86 percent), India (13.49 percent), and China (10.39 percent). The largest goods imports were fixed wing aircraft greater than 15,000kgs (6.74 percent), jewellery of precious metals (5.77 percent), cars (4.99 percent), and gas turbines (4.94 percent). In 1868, Britain recognised the sovereignty of Qatar, which had previously been under the suzerainty of Bahrain. Qatar became a British protectorate in 1916 and became independent in 1971. At the beginning of the 20th century pearling was the main industry. It went into decline following the introduction of Japanese cultured pearls in the 1930s and the Depression. In 1939, oil was discovered transforming the economy. From the 1950s, infrastructure was developed, and Doha became an urban centre. Natural gas was discovered in 1971 in the offshore North Field. The oil and gas industries were nationalised in 1977. Gas production began in 1991 for the domestic market. But as the export potential was realised, Qatar began to develop the infrastructure to export both LNG and GTL. The first exports were to Japan in 1996. The export of gas was a boon to the economy overtaking the importance of oil and insulating it from external shocks. It also marked new efforts to diversify the economy. In 1994 the Qatar foundation was established with the aim of promoting innovation and education. Al Jazeera was launched in 1996 and Qatar airways in 1997. In 2005, a sovereign wealth fund, the Qatar Investment Authority, was established. In 2008, the government launched "2030 Vision", which sets future economic and social goals. Qatar will host the FIFA World Cup in 2022. In 2017, Saudi Arabia, the UAE, Bahrain, and Egypt imposed a diplomatic and travel embargo on Qatar over allegations of supporting terrorists and because of its relations with Iran. Qatar disputed the claims and argues that it is an attack on its sovereignty. The economy initially suffered but by 2019 was benefitting from increased diversification in export destinations.
Republic of Moldova
RomaniaRomania was the 46th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $12,301 USD. It is a regional leader in fields such as IT and motor vehicle production. It was ranked 31st in the Economic Complexity Index in 2017. It is a member of the EU. Services was the largest economic sector in 2018 (57 percent of GDP), followed by manufacturing (20.1 percent), and agriculture (4.3 percent). In 2017, the largest export sectors were services (24.6 percent), electronics (13.63 percent), vehicles (13.62), machinery (10.5 percent), and agriculture (10.1 percent). The largest individual exports were ICT services (14.2 percent), parts of motor vehicles (7.5 percent), insulated electronic wire (4.5 percent), and cars (4.12 percent). Its largest export partners were Germany (22.4 percent), Italy (9.8 percent), France (6.2 percent), and Hungary (4.37 percent). The largest goods imports were parts of motor vehicles (4.65 percent), crude oil (3.4 percent), cars (2.97 percent), and packaged medicaments (2.6 percent). After World War Two, Romania fell under Soviet control and the economy transitioned to a centrally planned economy with collectivisation of agriculture and the development of heavy industry. Nicoale Ceausescu came to power in 1965. He reduced the level of decentralisation and introduced a policy of using western technology to produce exports for less developed countries. He was also responsible for turning Romania into a police state. By the 1980s, Romania had high public debt after borrowing from the West in the 1970s. The debt was serviced by switching domestic production to exports resulting in shortages and a general decrease in the standard of living. Following the end of communist rule in 1989, reforms and growth were slow. In the 2000s, reforms related to the EU accession process spurred growth by increasing FDI and productivity. Accession in 2007 led to increased exports. Romania was hit hard by the global financial crisis and turned to the EU and IMF for a bailout followed by a standby facility which ended in 2015. Growth rebounded after 2013, driven by strong industrial exports, excellent agricultural harvests, and, more recently, expansionary fiscal policies. The IT sector has also showed impressive growth. Further growth can be unlocked through better fiscal discipline, improving infrastructure, and continuing the fight against corruption.
Russian FederationThe Russian Federation was the 11th largest economy in the world by nominal GDP in 2018. It has a GDP per capita of $11,289 USD and is classified as an upper-middle income country by the World Bank. It is a vast country, rich in natural resources; the World Bank ranks it sixth in terms of natural capital. It has the largest proven reserves of natural gas (19.8 percent) and the sixth largest reserves of oil (6.1 per cent and 106bn barrels). It is the third largest producer of oil (12 percent) and the second largest producer of natural gas after the US (17.3 percent). It is also a top exporter of steel and aluminium. It is a member of the G20. Services were the largest sector in the economy in 2018 (54 percent), followed by manufacturing (12.3 percent), and agriculture (3.14 percent). In 2017, its largest export sectors were minerals (51 percent), services (13.6 percent), metals (10.3 percent), and agriculture (8.3 percent). Its largest individual exports were crude oil (24 percent), refined oil (15 percent), and ICT services (6.4 percent). China is its biggest export partner at 10.5 percent, followed by the Netherlands (9.5 percent), Germany (7 percent), and Turkey (5 percent). Its leading goods imports were industrial machinery (19 percent), electrical machinery and equipment (11 percent), and vehicles (9.4 percent). Under communism, Russia was transformed into an industrial giant, through collectivisation and central planning. But by the 1970s, the economy was stagnating under the weight of defence spending and falling productivity. After the collapse of the Soviet Union, the country moved quickly to a market-based system with large-scale privatisations of SOEs. The speed of change sent the economy into shock with the economy contracting annually between 1991 and 1997. Inequality also increased rapidly. In 1998, the Asian Crisis and a fall in commodity prices led to the Rouble Crisis. By 2000 the economy had recovered and grew rapidly until the global financial crisis in 2008. Growth recovered in 2010 but falling commodity prices and sanctions over Ukraine led to a recession in 2014. The government has turned to import substitution in recent years to diversify the economy away from commodities. It is also increasing spending on education, health, and infrastructure to boost future growth. With the right policies Russia can take advantage of its natural resources and its highly educated workforce.
Rwanda
Saint Helena
Saint Kitts and Nevis
Saint Lucia
Saint Pierre and Miquelon
Saint Vincent and the Grenadines
Samoa
San Marino
Sao Tome and Principe
Saudi ArabiaSaudi Arabia was the 18th largest economy in the world by nominal GDP in 2018 and the largest in the Middle East. It has a population of 34m and a GDP per capita of $23,219 USD. It has the second largest proven oil reserves in the world with 298bn barrels and a 17.2 percent share of world reserves in 2018 (Venezuela is first with 17.5 percent). It is the second largest producer of oil after the USA with 12.3m barrels per day and a 13 percent share. Oil rents were 23 percent of GDP in 2017. Saudi Arabia is also the fifth largest producer of natural gas with a 4.5 percent share of world production from a 3 percent share of proven reserves. It is also one of the world's largest producers of dates. It is a G20 country and a founding member of OPEC. Services is the largest sector in the economy (48 percent of GDP in 2018), followed by manufacturing (12.8 percent), and agriculture (2.2 percent). In 2017, its largest exports were crude oil (57.3 percent), refined oil (8.9 percent), polymers of ethylene (5.85 percent), and travel and tourism (5.7 percent). Its largest export partners were China (15.4 percent), Japan (13.5 percent), India (10.2 percent), and the USA (9.52 percent). Its largest imports are industrial machinery (12.5 percent), electrical machinery and equipment (11.5 percent), and vehicles (9.4 percent). In 1933, Saudi Arabia signed its first oil concession with Standard Oil of California. In 1938, commercial production began. By 1949 it was producing over 500,000 barrels per day and by 1958, 1m barrels per day. In 1960 it became one of the founding members of OPEC. During the 1973 oil crisis, the price of oil rose from $3 per barrel to nearly $12, which led to rapid economic growth. Between 1973 and 1981, Saudi GDP increased by over 11 times. In 1980, the oil industry was nationalised. The government began to diversify the economy in the 1970s with its first five-year plan, taking advantage of rising oil receipts. The first two five-year plans also focused on infrastructure while the third plan focused on human development. Subsequent plans have focused on diversification and the promotion of private sector investment. Inward FDI increased rapidly after Saudi Arabia joined the WTO in 2005. Recent business reforms have seen Saudi Arabia jump thirty places in the World Bank's Ease of Doing Business Report 2020. In 2016, "Saudi Vision 2030" was announced. It aims to diversify the economy further, and to develop public service sectors such as health, education, infrastructure, recreation and tourism. The government has also made reforms in recent years to improve its fiscal position, particularly after the fall in the oil price in 2014-16. The reforms include cuts to capital spending; reduced subsidies on electricity, water, and petroleum products; and the introduction of a 5 percent value-added tax in 2018.
SenegalSenegal was the 108th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $1,522 USD. It was the capital of French West Africa and remains home to banks and other institutions which serve the whole region. It is also a hub for shipping and transport in the region. Recent discoveries of gold and oil have helped to diversify the economy. Personal remittances were 9.2 percent of GDP. It was ranked 121st in the World Bank's Human Capital Index and 79th in the Economic Complexity Index in 2017. It is a member of the African Union. Services was the largest economic sector in 2018 (50.4 percent of GDP), followed by manufacturing (18.7 percent), and agriculture (16.6 percent). It is among the most diversified economies in West Africa. In 2017, the largest export goods sectors were agriculture (32.9 percent), minerals (30.91 percent), and chemicals (17.15 percent). The largest individual goods exports were refined petroleum (17.16 percent), phosphoric acid (12.56 percent), frozen fish excluding fillets (7.54 percent), gold (7.44 percent), and cements (6.54 percent). Its largest export partners were Mali (24.96 percent), India (14.48 percent), the UAE (4.65 percent), Switzerland (4.06 percent) and Côte d'Ivoire (4.02 percent). The largest goods imports were refined petroleum (11.87 percent), rice (4.85 percent), crude petroleum (4.85 percent), and transmission apparatus for radio, telephones, and television (3.67 percent). In the late 1800s, France extended its control over the whole country, starting from its colonial trading ports. After the abolition of the slave-trade in 1831, resin-based gum and peanuts became the dominant industries. Senegal gained independence from France in 1960. The economy initially struggled because of the loss of export markets in West Africa, with newly independent neighbouring countries embracing protectionism, and a decline in French government spending. The government responded by pursuing an industrial policy of import-substitution. It also controlled access to finance leading to the development of SOEs and French companies. Tourism was developed from the 1970s with World Bank help. Tourism is now one of the key industries. The government also invested heavily in infrastructure and industry during this period. In the 1980s, the government began to liberalise the economy, reducing regulatory control. In 2003, the government introduced a new mining code, which when combined with an increase in gold prices, led to an FDI led gold mining boom. Oil was discovered in 1961 but the oil fields proved small. Between 2014 and 2017, a long-awaited big discovery was made: 1 bn barrels of oil and 40 trillion cubic feet of gas, off the coast of Senegal and Mauritania. In 2014, Senegal launched the Plan for an Emerging Senegal, which aims to increase development by 2035.
Serbia
SeychellesSeychelles was the 169th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $16,434 USD, the highest in Africa. It is an archipelago of 115 islands in the Indian Ocean, northeast of Madagascar. Its economy is dominated by tourism. In 2018, trade was at 189 percent of GDP. It was ranked 43rd in the World Bank's Human Capital Index in 2017. It is a member of the African Union. Services was the largest economic sector in 2018 (70.4 percent of GDP), followed by manufacturing (6.4 percent), and agriculture (2 percent). In 2017, the largest export sectors were services (62.75 percent), and agriculture (32.78 percent). The largest individual exports were travel and tourism (30.34 percent), ICT services (17.67 percent), frozen fish excluding fillets (15.33 percent), preserved tuna (15.28 percent), and transport services (14.73 percent). Its largest export partners were France (20 percent), Mauritius (13.36 percent), the UK (12.54 percent), and Japan (9.93 percent). The largest goods imports were frozen fishes excluding fillets (11.07 percent), and refined petroleum (5.72 percent). Seychelles was uninhabited when first settled by the French in 1768. It was annexed by Britain in 1794 and gained independence in 1976. Despite over 182 years of British rule, Seychellois Creole (based on French) is the main language. Since independence, tourism has propelled the economy making it the richest country in Africa in terms of GDP per capita. Recent efforts have succeeded in diversifying the source of visitors beyond Europe. Fishing and aquaculture are also key industries. Prawn farming began in 1989 and pearl cultivation in 1995. Canned tuna exports increased rapidly from 1995 when Heinz acquired a 60 percent stake in local company Indian Ocean Tuna. In 2018, the government with help from the World Bank, issued the world's first sovereign "Blue Bond". It was modelled after the World Bank's successful "Green Bonds" program. The proceeds from the bond will help pay for marine protection and fishery management. Since introducing the Seychelles International Business Companies Act in 1995, offshore banking has become a growing sector. Recent reforms have been made to reduce the potential for money laundering after the Seychelles came under international pressure. Due to its small size, Seychelles relies on imports and FDI. In 2008, having depleted its foreign exchange reserves, Seychelles requested assistance from the IMF. It continues to work with the IMF in order to maintain its financial resiliency.
Sierra LeoneSierra Leone was the 153rd largest economy in the world by nominal GDP in 2018. Its GDP per capita was $523 USD. The country is blessed with large reserves of iron ore, diamonds, metals, and cocoa. It was ranked 151st in the World Bank's Human Capital Index. It is a member of the Economic Community of West African States (ECOWAS) and the African Union. Agriculture was the largest economic sector in 2017 (60.3 percent of GDP), followed by services (32.4 percent), and manufacturing (2 percent). In 2017, the largest export goods sectors were minerals (54.6 percent), agriculture (18.7 percent), and stones (15.2 percent). The largest individual export goods were iron ore and concentrates (27.4 percent), titanium ore (17 percent), diamonds (14.75 percent), aluminium ore (8.4 percent), and cocoa beans (7.9 percent). Its largest export partners were China (36.8 percent), Belgium (14.3 percent), the Netherlands (8.1 percent), and Romania (6.25 percent). The largest goods imports were rice (14.5 percent) and cars (4.96 percent). From the 15th century, Europeans began trading with locals along the coast. In the late 18th century, Britain established the settlement of Freetown. Thousands of freed slaves were settled there from Britain, Nova Scotia, and Jamaica. In 1808, Britain took over the settlement. They continued to settle it with freed slaves from around the region following the abolition of slavery. In 1896, Sierra Leone became a British protectorate and they extended their control over the interior after a failed uprising by inland chiefs. During WW2, Freetown grew rapidly as demand for labour increased. Sierra Leone gained its independence in 1961. The economy grew by an average of four percent in the first decade after independence. Growth was driven by the mining industries and agriculture. In the 1980s, the country experienced three bad recessions caused by external shocks and poor fiscal and macroeconomic policies. In 1991, the country descended into civil war, which devastated the economy. Over 70,000 people died and 2.6 million people became refugees. Infrastructure, factories, and the tourism industry were destroyed. Since the end of the civil war in 2002, the economy has recovered strongly led by iron ore exports and the global mining boom. The 2014 fall in commodity prices and outbreaks of Ebola in 2014 and 2015, resulted in a steep recession in 2015 (-20.5 percent). The economy has since recovered with strong recent growth in agriculture, construction, and iron ore exports.
SingaporeSingapore was the 33rd largest economy by nominal GDP in 2018. GDP per capita was $64,582 USD which is higher than the average for High Income Countries. It is a small island nation and a strategic entrepôt. Trade was 326 percent of GDP in 2018. It was ranked 1st in the World Bank's 2017 Human Capital Index, fourth in the 2017 Economic Complexity Index, seventh in World Bank's 2018 Logistics Performance Index, and second in the Heritage Foundation's 2019 Index of Economic Freedom. It is a member of ASEAN. Services accounted for 69.4 percent of GDP in 2018, followed by manufacturing (20.8 percent), and agriculture (0.02 percent). The largest export sectors in 2017 were services (31.3 percent), electronics (23.4 percent), machinery (12.16 percent), and chemicals (10.6 percent). The largest export products were electronic integrated circuits (16.36 percent), ICT services (13.3 percent), transport services (8.7 percent), refined petroleum (8.37 percent), and insurance and finance services (5.54 percent). Its largest export partners are China (14.38 percent), Hing Kong (11.3 percent), Malaysia (10.84 percent), Indonesia (7.7 percent), and the USA (5.3 percent). The largest import goods were electronic integrated circuits (19.8 percent), refined petroleum (13.5 percent), and crude oil (6.58 percent). In 1819, Sir Thomas Stamford Raffles signed an agreement with local rulers to establish a British trading post. In 1867, it was made a crown colony along with Malacca and Penang. Trade increased after the opening of the Suez Canal in 1869 and again in the 1870s when the trade in Malaysian rubber grew. In the early 20th century, the key exports were rubber, tin, and petroleum sourced from Malaysia and Indonesia. In 1938, the British completed a naval base. During WW2, it was occupied by the Japanese. It was granted self-rule in 1959 and joined Malaysia in 1963. But in 1965, it peacefully broke from Malaysia and became an independent country because of disagreements over economic and political policies. After independence, the People's Action Party led by Lee Kuan Yew introduced a number of economic and industrial plans to develop the country. Free trade and foreign investment were key parts of the plans. In the 1960s the country was industrialised. Manufacturing and services then followed. By the 1990s, Singapore had emerged as a key financial hub for the region. Since independence, the economy has grown at an average rate of 7.4 percent and Singapore has joined the ranks of developed and High Income Countries.
Sint Maarten (Dutch part)
SlovakiaSlovakia was the 60th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $19,547 USD. It has grown strongly in recent years with a growing car and IT industry. It was ranked 16th in the Economic Complexity Index in 2017. It is a member of the EU and OECD. Services was the largest economic sector in 2018 (55.5 percent of GDP), followed by manufacturing (20 percent), and agriculture (3 percent). In 2017, the largest export sectors were vehicles (25.46 percent), electronics (17.57 percent), machinery (12.3 percent), and services (10.98 percent). The largest individual exports were cars (17.65 percent), monitors and projectors (5.72 percent), parts of motor vehicles (5.65 percent), and IT services (4.53 percent). Its largest export partners were Germany (19.23 percent), Czechia (11 percent), Poland (7.63 percent), and Hungary (6.33 percent). The largest goods imports were parts of motor vehicles (8.39 percent), transmission apparatus for radios, telephones, and televisions (6.24 percent), and cars (3.53 percent). Czechoslovakian industry was already well developed by the start of World War Two and survived the war largely intact. Following the fall of communism in 1989 and the dissolution of Czechoslovakia in 1993, Slovakia's economy initially grew slowly because of the country's authoritarian leadership and high levels of corruption. In 1998, a new government brought reforms which were deepened by the accession process and the move to adopt the euro. The reforms and EU integration led to strong growth with exports and investment being strong drivers. In particular, the car industry has grown rapidly. Since joining the EU in 2004, the economy has been among the fastest growing in the EU. The global financial led to a recession in 2009 but the economy recovered strongly. The IT sector is also growing and Bratislava has developed a vibrant start-up scene.
SloveniaSlovenia was the 81st largest economy in the world by nominal GDP in 2018. Its GDP per capita was $26,234 USD. It has a highly educated workforce, well-developed infrastructure, and is strategically located between Western Europe and the Balkans. It was ranked 13th in the World Bank's Human Capital Index and 12th in the Economic Complexity Index in 2017. It is a member of the EU and OECD. Services was the largest economic sector in 2018 (56.3 percent of GDP), followed by manufacturing (20.1 percent), and agriculture (1.9 percent). In 2017, the largest export sectors were services (20.2 percent), chemicals (15.84 percent), vehicles (14.15), machinery (10.92 percent), and electronics (9.49 percent). The largest individual exports were cars (8.92 percent), ICT services (7.2 percent), travel and tourism (6.79 percent), packaged medicaments (6.4 percent), and transport services (5.8 percent). Its largest export partners were Germany (19.72 percent), Italy (10.3 percent), Croatia (7.87 percent), Austria (7.34 percent), and France (5.31 percent). The largest goods imports were cars (6.4 percent), refined petroleum (4.2 percent), parts of motor vehicles (3.6 percent), and packaged medicaments (2.6 percent). Industrialisation began slowly in the early 1800s and was spurred by the introduction of railway lines from the mid -1850s. In 1918 with the collapse of the Austro-Hungarian empire, Slovenia joined Yugoslavia but enjoyed little autonomy. After Yugoslavia broke with the Soviet Union in 1948, Slovenia and the other socialist republics within Yugoslavia were given increasing economic autonomy within a mixed market and socialist economy. In 1991, Slovenia declared independence. High inflation and the loss of the Yugoslav market was quickly overcome by tight monetary policy, sound fiscal policy, the introduction of its own currency, new export markets, and the expansion of the services sector. The reform process then proceeded gradually but was given new impetus by the EU accession process. These reforms and increased FDI led to increased growth. The global financial crisis hit Slovenia hard leading to a recession in 2009. It also exposed high debts levels in domestic companies which led to a banking crisis and another recession in 2012-13. Growth returned after the government recapitalised the banking system, increased public investment (with EU funds), and exports increased.
Solomon Islands
Somalia
South AfricaSouth Africa is the 32nd largest economy in the world by nominal GDP (2018) and is the second largest economy in Africa (after Nigeria). It is rich in minerals including diamonds, gold, and platinum metals (91 percent of global reserves). It has well-developed financial, legal, communications, energy, and transport sectors; and has the largest stock market in Africa. GDP per capita is $6,374 USD. It is the only African member of the G20. Services was the largest sector in 2018 (61 percent), followed by manufacturing (11.8 percent), and agriculture 2 percent. Its largest export sectors in 2017 were precious metals and stones (24 percent) minerals (19.4 percent), services (12.9 percent), agriculture (10.4 percent), metals (9.2 percent), and vehicles (8.7 percent). The largest individual exports were gold (14 percent), travel and tourism (7.2 percent), platinum (6 percent), cars (5.3 percent), coal (4.7 percent), and iron ore (4.4 percent). Its largest export partners were China (18.7 percent), USA (6.8 percent), Germany (6 percent), UK (5.6 percent), and India (5.3 percent). Its largest goods imports were crude oil (7.3 percent), refined oil (5 percent), cars (4.6 percent), and car parts (3.8 percent). The discovery of diamonds and gold in the late 1800s revolutionised the economy, in addition to income it brought international investment which furthered development. During the first half of the 20th century the economy grew as the government encouraged the development of manufacturing and farming through tariffs, incentives, and state corporations. But by the 1970s the economy was in decline as mining output reduced, marginal productivity gains from investment decreased, and population growth outstripped economic growth. Social tensions from apartheid and increasing international sanctions also had their toll. Post-apartheid, the government has sought to encourage private investment through deregulation, privatisation, and fiscal discipline. In 2013, the government began implementing the "National Development Plan 2030" with the aim of reducing poverty and inequality. While investment and growth have been slower than expected, the foundation for increased future growth has been laid through necessary structural reforms.
South Sudan
SpainSpain was the 14th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $30,524 USD. It is the second largest country in the EU by geographical area and had the fourth largest population (excluding the UK) in 2019. It was ranked 32nd in the World Bank's Human Capital Index and 28th in the Economic Complexity Index in 2017. It is a member of the EU and OECD. Services was the largest economic sector in 2018 (65.9 percent of GDP), followed by manufacturing (12.6 percent), and agriculture (2.6 percent). In 2017, the largest export sectors were services (30.3 percent), vehicles (14 percent), agriculture (13.65 percent), and chemicals (10.6 percent). The largest individual exports were travel and tourism (15.6 percent), ICT services (9.27 percent), cars (7.64 percent), and transport services (4.05 percent). Its largest export partners were France (14.6 percent), Germany (10.89 percent), Italy (7.69 percent), Portugal (6.99 percent), and the UK (6.58 percent). The largest goods imports were crude oil (6.59 percent), cars (5.61 percent), and parts of motor vehicles (3.71 percent). Economic growth was relatively slow in the eighteenth and first half of the nineteenth century. Industrialisation began in the 1860s but did not progress to an advanced level until the 1960s. The depression and civil war also hurt growth as did the early economic policies of Franco. Between 1950 and 1974 the economy grew strongly as capital deepened and total-factor productivity increased. It also benefitted from trade liberalisation after the 1959 Stabilisation Plan. The 1970s oil shocks brought an end to the growth and the post Franco governments were unable to deliver necessary structural reforms. In the 1990s and up until the global financial crisis the economy boomed as foreign credit fuelled the construction and housing industry. The global financial crisis hit hard. Initial stimulus gave way to austerity, and growth did not return until 2014. Since then the economy has performed well benefitting from increased labour productivity, reduced labour costs, and the return of FDI.
Sri LankaAn island nation in South Asia, Sri Lanka is the second wealthiest nation in the region (GDP in terms of purchasing power parity) after Maldives. The country has operated a free-market economy since 1977, before which socialism was driving the nation's economic policies. A significant portion of nation's labour force is employed in the service sector. Social inclusion, governance and stability are some of the challenges faced by the country. Sri Lanka is highly reliant on foreign assistance and in 2003 it received pledges totalling $4.5 billion from several financial institutions and countries. Since 2005 the country's per capita income has doubled with a fall in both poverty and unemployment. The country had a Gini coefficient of 0.36 in 2010 highlighting the drop in income inequality. To avert a balance of payment crisis, the country took a $1.5 billion bailout from the IMF in 2016. The nation's parliament, in response to the recommendations made under the IMF program, passed a new Island Revenue Act to introduce tax reforms. In the following year (2017), owing to improved human right conditions, the country was granted GSP plus facility by the European Union (EU) which enabled its firms to export products tax free to the region. The IMF in its fourth review highlighted the need to have a monetary policy which is prudent with efforts to increase the foreign reserves. The US, UK and India are the major export partners of the country whereas India and China are the major import partners. As compared to the other south Asian countries, Sri Lanka is ranked well above in the Human Development Index (HDI). The country has experienced budget deficits owing to high debt payments and distended civil service. A significant portion (79%) of this country's GDP accounts for government debt, which is the highest among the emerging markets. After the resolution of country's civil war, tourism experienced strong growth. By 2025, the government hopes to have transformed the island country into a knowledge-based export-oriented hub.
State of Palestine
SudanSudan was the 90th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $977 USD. It is the third largest country in Africa by geography. It is at the cross-roads of Africa and the Middle East. It was ranked 139th in the World Bank's Human Capital Index and 120th in the Economic Complexity Index in 2017. It is a member of the African Union. Services was the largest economic sector in 2018 (49.5 percent of GDP), followed by agriculture (31.5 percent), and manufacturing (2.4 percent). In 2017, the largest export sectors were stones (36.4 percent), agriculture (27 percent), services (23.16 percent), and minerals (11.09 percent). The largest individual exports were gold (35.8 percent), travel and tourism (15.75 percent), crude oil (9.58 percent), sheep (7.26 percent), and other oil seeds (6.18 percent). Its largest export partners were UAE (49 percent), Saudi Arabia (11.9 percent), China (11.17 percent), and India (9.02 percent). The largest goods imports were wheat and meslin (6.21 percent), sugarcane and sucrose (5.15 percent), refined petroleum (5 percent), and cars (4.08 percent). Britain took an active interest in Sudan following its occupation of Egypt in 1882. From 1898, Britain and Egypt administered all of present-day Sudan. Prior to independence, the economy was largely based on subsistence agriculture with some irrigated cash-crops i.e. cotton and Arabic gum. Since its independence in 1956, Sudan has suffered several internal conflicts between the largely Arabic north and the Christian and Animist south: the First Sudanese Civil War (1955-1972), the Second Sudanese Civil War (1983-2005), and the War in Darfur (2003-2010), which led to the secession of South Sudan in 2011. The main root of the conflict can be traced back to centuries of lesser economic development in the south. With the secession, Sudan lost three-quarters of its oil reserves. Oil helped drive strong economic growth during the 2000s. Growth decreased following the decrease in the oil price from 2014. The government is committed to diversifying the economy to provide consistent future growth.
Suriname
SwedenSweden was the 22nd largest economy in the world by nominal GDP in 2018. Its GDP per capita was $54,112 USD, which is above the average for the OECD and High Income countries. Sweden is an open and dynamic market economy underpinned by high taxation and welfare. It was ranked 8th in the World Bank's Human Capital Index and 5th in the Economic Complexity Index in 2017. It is a member of the OECD and EU. It is not a member of the euro area. Services was the largest economic sector in 2018 (64.7 percent of GDP), followed by manufacturing (13.8 percent), and agriculture (1.04 percent). In 2017, the largest export sectors were services (32.2 percent), machinery (12.96 percent), agriculture (11.16 percent), vehicles (9.77 percent), and chemicals (9.22 percent). The largest individual exports were ICT services (19.18 percent), travel and tourism (6.19 percent), transport services (4.8 percent), cars (3.78 percent), and refined petroleum (3.35 percent). Its largest export partners were Germany (10.44 percent), Norway (9.9 percent), Finland (6.76 percent), Denmark (6.76 percent), and the US (6.58 percent). The largest goods imports were cars (5.9 percent), crude oil (4.8 percent), refined oil (3.82 percent), and parts of motor vehicles (3.61 percent). Sweden enjoyed strong productivity and economic growth between 1870 and 1970. It transformed itself from an agrarian to an industrial nation. This can be explained by a number of factors including the export of timber and ore to industrial Britain at the turn of the 19th century, its neutrality during both World Wars, and institutional reforms in the late 1800s. It has also benefitted from cheap electricity (hydropower) and its export orientation. In the 1980s and early 1990s, the economy struggled. Public debt was too high, and regulations had eroded the international competitiveness of Swedish firms. The government responded with fiscal discipline, a flexible exchange rate, and microeconomic reforms. The microeconomic reforms led to productivity gains, particularly in manufacturing, services, and export orientated industries. Key microeconomic reforms included deregulation of: banking and finance, power generation and distribution, telecommunications, and rail freight. The global financial crisis led to a recession but Sweden recovered quickly through the depreciation of the Krona and fiscal and monetary and fiscal stimulus. Sweden has also become a leader in start-ups and the new economy with Spotify its most famous example.
Switzerland
Syrian Arab Republic
TürkiyeTurkey was the 19th largest economy in the world by nominal GDP in 2018. GDP per capita is $9,311. It has a population of over 83m, similar in size to Germany. Most of the country is in Asia minor but its largest city, Istanbul straddles Asia and Europe. It is a member of the G20 and OECD. Services was the largest economic sector in 2018 (54 percent of GDP), followed by manufacturing (19 percent), and agriculture (5.8 percent). In 2017, the largest export sectors were services (21.75 percent), textiles (15 percent), vehicles (13.8 percent), and agriculture (10.1 percent). The largest individual exports were travel and tourism (11 percent), transport services (7.5 percent), cars (6.25 percent), and gold (2.58 percent). Its largest export partners were Germany (9.7 percent), UK (5.98 percent), US (5.59 percent), Italy (5.54 percent), and Iraq (5.53 percent). The largest goods imports were cars (3.74 percent), gold (6.05 percent), and refined petroleum (3.7 percent). Post WW2, Tukey pursued a policy of import substitution with a focus on the internal market. The economy industrialised and grew but was unable to achieve the levels of economic growth in Western Europe post WW2. In the 1980s, Turkey began to liberalise its economy reducing controls on trade, investment, prices, and the private sector. The policies led to a rapid increase in FDI, investment and total factor productivity but its poor macroeconomic fundamentals led to repeated crises culminating in a severe financial crisis in 2001. After the crisis, the government strengthened macroeconomic fundamentals, reformed the financial system, and privatised many SOEs. This resulted in strong growth (an average of more than 6 percent) up until the global financial crisis. Poverty more than halved between 2002-15. However, the appetite for reforms and macroeconomic discipline began to wane. The economy recovered strongly from the global financial crisis but has been under pressure since 2015. Persistently high current account deficits have kept investors nervous. Further, since 2017, the economy has also suffered from high inflation and a falling lira. A return to reforms and better macroeconomic fundamentals would unlock further growth.
Taiwan
Tajikistan
ThailandThailand was the 25th largest economy by nominal GDP in 2018 and the second-largest in South-East Asia. GDP per capita was $7,274 USD. Despite regular political instability, Thailand has enjoyed strong economic growth and social development over the past 40 years. Trade was 123 percent of GDP in 2018. It was ranked 65th in the World Bank's Human Capital Index and 32nd in the Economic Complexity Index in 2017. It is a member of ASEAN. Services accounted for 56.9 percent of GDP in 2018, followed by manufacturing (26.9 percent), and agriculture (8.1 percent). The largest export sectors in 2017 were services (24.2 percent), machinery (16.85 percent), electronics (15.14 percent), chemical (12 percent), and agriculture (11.16 percent). The largest export products were travel and tourism (18.2 percent), parts and accessories for office machines (6.3 percent), and electronic integrated circuits (4.11 percent). Its largest export partners were China (16.7 percent), the USA (12.95 percent), and Japan (9.12 percent). The largest import goods are electronic integrated circuits (4.9 percent), gold (4.62 percent), and parts of motor vehicles (3.4 percent). The ruling Chakri dynasty began to rule in 1782 and established Bangkok as their capital. Thailand began to modernise in the 19th century as they sought to prevent colonialism. However, rice would continue to dominate exports and the economy up until the 1960s. In 1932, a bloodless coup established a constitutional monarchy with parliamentary democracy. Japan occupied Thailand during WW2. In 1947, the military took power and stayed in power until 1973. Since then civilian rule has been punctuated by several military coups. The last coup was in 2014. The economy grew rapidly in the 1980s and 1990s. FDI was encouraged, manufacturing increased, and tourism was developed in Phuket. Manufacturing was initially focused on labour-intensive products such as textiles but by the late 1980s, manufacturing switched to medium and high-tech products. In 1997, the economy was devastated by the Asian Financial crisis, which was triggered by speculation against the Thai currency (the Baht) and the subsequent removal of its US dollar peg. In the 2000s, the economy grew slowly, hampered by political instability and protests. Since 2014, growth has started to improve. Poverty has fallen from 60 percent in 1990 to 7 percent in 2018.
Timor-Leste
TogoTogo was the 149th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $672 USD. It is located on the Gulf of Guinea in between Ghana and Benin. It is made up of over 18 ethnic groups. It was ranked 122nd in the World Bank's Human Capital Index and 126th in the Economic Complexity Index in 2017. It is a member of the Economic Community of West African States (ECOWAS) and the African Union. Services was the largest economic sector in 2018 (29 percent of GDP), followed by agriculture (23 percent), and manufacturing (8 percent). In 2017, the largest export goods sectors were minerals (41.7 percent), stones (26.2 percent), and agriculture (14.1 percent). The largest individual goods exports were gold (26.1 percent), refined petroleum (22.4 percent), and electrical energy (5.1 percent). Its largest export partners were the UAE (22.6 percent), Cameroon (11 percent), Benin (9 percent), and Cote d'Ivoire (8.7 percent). The largest goods imports were refined petroleum (43 percent), crude oil (10.9 percent), cotton (4.2 percent), motorcycles (3.8 percent), and transmission apparatus for radio, televisions, and telephones (3.24 percent). In the 18th century, the coast of Togo became part of the Danish slave trade, which supplied slaves to the Danish colonies in the Caribbean. With abolition, Denmark lost interest in the region and were replaced by the British and Germans. In 1884, Togo became a German protectorate. After WW1, it was divided between France and Britain. British Togoland joined with the Gold Coast to form an independent Ghana in 1957. French Togoland became autonomous in 1956 and independent in 1960. Coffee growing was introduced after WW1 and became an important export industry after WW2. Exports of phosphate began in 1961 and quickly became the major export for the next 50 years. Gold has emerged as a significant export in recent years but most of this gold originates from Burkino Faso. Since 2010, real annual GDP growth has average 5.5 percent. The government has invested in infrastructure and continues to work with the IMF to reform the economy and improve public finances.
Tokelau
Tonga
Trinidad and Tobago
Tunisia
Turkmenistan
Turks and Caicos Islands
Tuvalu
UgandaUganda was the 101st largest economy in the world by nominal GDP in 2018. Its GDP per capita was $643 USD. Personal remittance were 4.48 percent of GDP in 2018. The growth of the oil and ICT industries promises to continue the recent transformation of the Ugandan economy. It was ranked 137th in the World Bank's Human Capital Index and 77th in the Economic Complexity Index in 2017. It is a member of the East African Community and the African Union. Services was the largest economic sector in 2018 (47.6 percent of GDP), followed by agriculture (24.2 percent), and manufacturing (8.3 percent). In 2017, the largest export sectors were agriculture (40.3 percent), services (36 percent), and stones (8.75 percent). The largest individual exports were travel and tourism (20.6 percent), coffee (11.6 percent), ICT services (4.01 percent), and gold (8.6 percent). Its largest export partners were Kenya (18.6 percent), UAE (13.87 percent), South Sudan (9.5 percent), Congo DR (6.5 percent), and Rwanda (6.2 percent). The largest goods imports were refined petroleum (15.7 percent), palm oil (5.2 percent), packaged medicaments (4.3 percent), and transmission apparatus for radio, televisions, and telephones (3.8 percent). Britain gained exclusive influence over the territory of Uganda after signing a treaty with Germany in 1890. In 1894, Buganda, the leading kingdom in the region, became a British protectorate. Neighbouring kingdoms became protectorates in 1896. In 1900, Britain gave Buganda autonomy within the larger protectorate and leveraged their dominance throughout the country. Cotton was introduced in 1904 and coffee and sugar in the 1920s. Cotton was typically grown by small local landholders while coffee was initially grown on British plantations. The economy struggled during WW1 and the depression but boomed after WW2 with rising coffee and cotton prices. In 1958, Uganda was given autonomy and then independence in 1962. Buganda retained a large degree of autonomy. In 1967, President Milton Obote asserted himself and abolished the kingdoms. The kingdoms were restored in 1993. In 1971, leading general Idi Amin led a successful military coup, after his relationship with Obote began to deteriorate. His reign of terror ended in 1979 when Tanzania repulsed a Ugandan invasion in 1978 and continued on to topple Amin. After the devastation of the Amin period, the economy initially recovered but then suffered from poor macroeconomic policies, high public debt, and internal conflict. The economy was transformed in the 1990s with structural reforms of the Museveni government and the growth of manufacturing and services. The discovery of oil in 2006 was a boon but conflict in South Sudan slowed growth. In recent years the government has been investing heavily in infrastructure and energy to promote long-term growth. Strong growth in the ICT sector and better agricultural conditions has seen growth improve recently.
UkraineUkraine was the 57th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $3,095 USD. It is the second largest European country by land area and eighth largest by population. It was ranked 50th in the World Bank's Human Capital Index and 39th in the Economic Complexity Index in 2017. Services was the largest economic sector in 2018 (51.3 percent of GDP), followed by manufacturing (11.5 percent), and agriculture (10.13 percent). In 2017, the largest export sectors were agriculture (33.9 percent), services (23.1 percent), and metals (17.56 percent). The largest individual exports were ICT services (11.26 percent), transport services (9.66 percent), sunflower seed oil (7.05 percent), and corn (5.01 percent). Its largest export partners were Russia (8.82 percent), Italy (5.63 percent), Poland (5.61 percent), Turkey (5.52 percent), Germany (5.15 percent), and India (5.13 percent). The largest goods imports were petroleum gasses (7.88 percent), refined petroleum (7.66 percent), cars (4.36 percent), and coal (4.14 percent). During the 10th and 11th centuries, Kiev emerged as a key trading post between Constantinople and the Varangians. From there an eastern-Slavic state emerged, the Kievan-Rus, which has left a large cultural legacy to this day. After Mongol invasions, Polish-Lithuanian control, and a brief Cossack state, Russia took control in the 18th century. In the late 19th and early 20th centuries, Russia built railroads in the Ukraine and developed the iron and coal industries. Following the Bolshevik revolution in 1917, Ukraine briefly became independent but was recaptured by the Soviets in 1920. Under Soviet control, Ukraine was further industrialised and was a key source of food. Under the Soviets, the country suffered forced famines in 1921-23 and 1932-33 (8m deaths). WW2 also led to the loss of over 6.5m people. Ukraine gained independence in 1991. Initial economic reforms stalled by the late 1990s and the economy underperformed. The 2000s saw growth but the Global Financial Crisis and the conflict with Russia from 2014 led to sharp contractions in 2009 and 2014-15. Recent reforms, resilience and international assistance has seen growth return from 2016.
United Arab EmiratesThe UAE was the 28th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $43,005 USD. It had the 8th largest proven oil reserves in the world in 2018. It is made up of seven emirates. Dubai has the largest population and the most diverse economy. Abu Dhabi has around 94 percent of the oil reserves and houses the capital. Trade was at 162 percent of GDP in 2018. It was ranked 49th in the World Bank's Human Capital Index and 54th in the Economic Complexity Index in 2017. It is a member of the GCC and OPEC. Services was the largest economic sector in 2018 (52.5 percent of GDP), followed by manufacturing (8.9 percent), and agriculture (0.74 percent). In 2017, the largest export goods were minerals (34.4 percent), other (25 percent), and stone (13 percent). The largest individual exports were unspecified (25 percent), crude oil (22.4 percent), refined petroleum (8.25 percent), gold (5.47 percent), jewellery of precious metals (3.4 percent), and diamonds (3.3 percent). Its largest export partners were undeclared countries (27.3 percent), Taiwan (14.31 percent), India (5.45 percent), and Japan (5.25 percent). The largest goods imports were gold (10.96 percent), transmission apparatus for radio, telephone, and television (10.87 percent), cars (4.87 percent), and diamonds (4.03 percent). By 1869, pearling was the dominant industry but by 1938 it was in decline because of the Depression and Japanese cultured pearls. In 1958, oil was discovered in Abu Dhabi transforming it from the poorest emirate to the richest. In 1966, oil was also discovered in Dubai. In 1971, the "Trucial States" formed the United Arab Emirates and became independent from Britain. During the 1970s and 1980s, Dubai used its oil wealth to develop its trade and tourism industries. The port of Jebel Ali is the largest in the Middle East and was the ninth largest container port in the world in 2018. Abu Dhabi created a sovereign wealth fund in 1976, the Abu Dhabi Investment Authority, which was ranked the third largest in 2018. The fund plays an important role in stabilising and developing the economy. In the 1990s, diversification efforts began to pay off with industries like petrochemicals, aluminium, tourism, and manufacturing contributing to growth. The global financial crisis in 2008-09 hit Dubai hard leading to a fall in the real estate market and a bail-out from Abu Dhabi. With lower oil prices since 2014-15, the government has introduced fiscal reforms, including a decrease in fuel subsidies in 2015, an excise tax in 2017 (on carbonated drinks, tobacco and alcohol), and a VAT in 2018. Recent strategic plans continue to focus on diversification including the development of commerce, tourism, and entrepreneurship.
United KingdomThe UK is the sixth-largest economy in the world and third in Europe. But its prominence in the global economy is even greater than these rankings suggest because of its openness to trade and high level of development both economically and financially. London is the second most important world financial centre after New York and has the largest GDP of any city in Europe. Of the world's 500 largest companies, around 26 are headquartered here. The service sector contributes around 80 percent of GDP (financial services contributing 6.9 percent of GDP and 3.1 percent of all UK jobs.) The UK also has the second largest aerospace industry and the tenth largest pharmaceutical industry. It has been a net importer of energy since 2005 despite large oil reserves remaining in the North Sea (2.8bn barrels in 2016). The UK was the first country to industrialise and was the leading economy in the 19th and early 20th centuries. Benefitting from natural resources, particularly coal, the economy transitioned from agriculture to industrial production and trade. Its position was weakened by the two World Wars and accompanying debt, but along with the US played the key role in creating the institutional framework for today's global economy (Bretton Woods). The global financial crisis and resulting slowdown compounded domestic problems of falling house prices and high consumer debt leading to recession in 2008/9. Government finances also came under pressure with public debt increasing from 42 to 75 percent of GDP between 2007 and 2010. In 2010, the Conservative-led coalition with the Liberal Democrats initiated an austerity program, which was continued by the conservative government that followed. A subsequent conservative government indicated a return to spending, investment and a “new decade of renewal”. In June 2016, the UK voted via referendum to leave the EU but numerous delays to the exit agreement created political and economic uncertainty. The pound depreciated while exports, investment and consumer spending reduced. Critics argue that Brexit will jeopardise the importance of London as a global financial centre, but proponents counter that the UK will emerge stronger as a leading global free trade centre. By late 2019, the UK had already concluded close to 20 free-trade agreements to take effect post-brexit.
United Republic of Tanzania
United States of AmericaThe USA was the largest economy in the world by nominal GDP in 2018. It generates and earns more than 20 percent of global income and is the second largest manufacturing country. It has a diverse economy, is rich in natural resources (fourth in natural capital), is the leader in science and technology, and New York is the world's leading financial centre. GDP per capita is $62,641, which is above the average for high income and OECD countries. It is a member of the G20, OECD, and the USMCA free trade agreement. Services was the largest economic sector in 2018 (77 percent of GDP), followed by manufacturing (19 percent). In 2017, the largest export sectors were services (34 percent), machinery (13 percent), chemicals (10 percent), vehicles (8.2 percent), agriculture (7.7 percent), and electronics (7.4 percent). The largest individual exports were ICT services (15.8 percent), travel and tourism (8.98 percent), insurance and finance (5.45 percent), and refined petroleum (3.23 percent). Its largest export partners were Canada (17.85 percent), Mexico (15.7 percent), and China (8.49 percent). The largest goods imports were cars (7.56 percent), crude oil (5.7 percent), and transmission apparatus for radio, telephone, and TV (4.2 percent). By WW1 the USA had emerged as the leading industrial power and after the war New York had displaced London as the leading financial centre. The great depression had a profound impact on the USA and the world. After the failure of protectionism at the start of the depression the USA embraced free trade and made it a tenet of its economic policy. After WW2, the USA and Britain remade the global economic order with the US linked to gold and the establishment of the Bretton Woods institutions. The 1950s and 1960s was an era of rapid growth and marked the rise consumerism, which the US exported to the rest of the world. The oil shocks and Vietnam led to stagnation in the 1970s and early 1980s, at which point Reaganomics took over. The late 1990s and 2000s saw low interest rates and "irrational exuberance" fuel the stock market and housing market, which led to the Tech Bubble in 2001 and the global financial crisis in 2008. US public debt has grown though the 2000s on the back of the financial crisis and the wars in Afghanistan and Iraq. The US has also recently become the world's largest oil producer as shale oil became viable through new technology and a rising oil price.
Uruguay
Uzbekistan
Vanuatu
Venezuela (Bolivarian Rep. of)
VietnamVietnam was the 45th largest economy by nominal GDP in 2018. GDP per capita was $2,564 USD. Since the start of economic reforms in 1986, Vietnam has enjoyed strong economic growth. Trade was 187.5 percent of GDP in 2018. Remittances were 6.5 percent of GDP. It was ranked 48th in the World Bank's Human Capital Index and 83rd in the Economic Complexity Index in 2017. It is a member of ASEAN. Services accounted for 41.2 percent of GDP in 2018, followed by manufacturing (16 percent), and agriculture (14.6 percent). The largest export sectors in 2017 were electronics (37.6 percent), textiles (21.9 percent), agriculture (11.2 percent), and machinery (9.45 percent). The largest individual exports were transmission apparatus for radios, telephones, and television (14.9 percent), electronic integrated circuits (6.64 percent), and telephones (6.39 percent). Its largest export partners were China (19 percent), the USA (17.66 percent), Japan (6.67 percent), and South Korea (5.86 percent). The largest import goods are electronic integrated circuits (12.94 percent), phones (4.88 percent), and refined petroleum (3.23 percent). The Han Chinese gradually asserted control over Vietnam from 220 BC. They maintained control until 938 AD. From 938 AD, Vietnam was ruled by several local dynasties with varying levels of control. These dynasties were interspersed by episodes of Chinese reassertion. In 1858, France invaded and incorporated Vietnam into Indochina in 1887. During WW2, the Viet Minh resisted the Japanese. After WW2, Ho Chi Minh declared independence but the French reasserted control. In 1954, the communists led by Ho Chi Minh defeated the French at Dien Bien Phu, which led to the withdrawal of the French. However, the country was divided north and south at the Geneva conference. North Vietnam wanted to reunite the country, but the US provided aid and arms to the South. By 1965, US involvement had turned into outright war, which ended with US troop withdrawal in 1973 and the fall of Saigon in 1975. The first decade after unification saw slow economic growth because of international isolation and conservative economic policies. Economic reforms, known as "Doi Moi" policy, began in 1986 and has led to strong economic growth in the last three decades. Real GDP growth averaged 6.6 percent between 1986 and 2018. Vietnam joined ASEAN in 1995 and relations with the US were normalised in the same year.
Virgin Islands (US)
Wallis and Futuna Islands
Western Sahara
Yemen
ZambiaZambia was the 103rd largest economy in the world by nominal GDP in 2018. Its GDP per capita was $1,540 USD. It is Africa's second-largest copper producer. It achieved middle-income country status in 2011 following a decade of strong economic growth. It was ranked 131st in the World Bank's Human Capital Index and 78th in the Economic Complexity Index in 2017. It is a member of the Southern African Development Community and the African Union. Services was the largest economic sector in 2018 (54 percent of GDP), followed by manufacturing (8.5 percent), and agriculture (2.6 percent). In 2017, the largest export sectors were metals (72.5 percent), services (11.36 percent), and agriculture (8.8 percent). The largest individual exports were unrefined copper (49.9 percent), refined copper and copper alloys (19.17 percent), and travel and tourism (8.6 percent). Its largest export partners were China (44 percent), India (13.64 percent), and the UAE (6.53 percent). The largest goods imports were copper ore (9.87 percent), cobalt oxides and hydroxides (8.34 percent), refined petroleum (5.43 percent), and crude oil (5.03 percent). In 1889, the British took control of the area with the establishment of the British South Africa company. In 1911, Northern Rhodesia was created by the merger of two smaller protectorates. The Crown took control in 1924. In 1928, the first commercial copper mine was opened spurring development in the country. After WW2 and a brief federation with Southern Rhodesia (Zimbabwe) and Nyasaland (Malawi), the country gained independence in 1964. The economy grew strongly in the 1960s and 1970s on the back of copper mining. But a fall in copper prices from the mid-1970s and the oil shocks ended the period of growth. A further fall in the copper price in the 1980s combined with drought and economic mismanagement resulted in just two years of growth during the 1980s. Reforms in the 1990s laid the foundation for growth in the 2000s.The increase in the copper price in the 2000s also contributed. Real GDP growth averaged 6.6 percent between 1999 and 2014. With the fall in the copper price in 2015, growth has slowed.
ZimbabweZimbabwe was the 98th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $2,147 USD. Personal remittance were around 6 percent of GDP in 2018. It was ranked 114th in the World Bank's Human Capital Index and 95th in the Economic Complexity Index in 2017. It is a member of the Southern African Development Community and the African Union. Services was the largest economic sector in 2018 (45.7 percent of GDP), followed by manufacturing (8.2 percent), and agriculture (12.1 percent). In 2017, the largest export sectors were agriculture (48.9 percent), services (15.2 percent), stones (15.11 percent), and minerals (9.12 percent). The largest individual exports were unmanufactured tobacco (35.9 percent), gold (7.8 percent), diamonds (6.9 percent), transport services (6.02 percent), and travel and tourism (5.4 percent). Its largest export partners were China (35.4 percent), UAE (14.9 percent), and South Africa (7.27 percent). The largest goods imports were electrical energy (4.1 percent), packaged medicaments (3.36 percent), and transmission apparatus for radio, televisions, and telephones (3.08 percent). In 1889, the British South Africa company was granted control over Southern Rhodesia (now Zimbabwe). Their control lasted until 1922 when Southern Rhodesia gained self-rule. Gold was the main export at this time, but tobacco was introduced and displaced gold as the main export by the 1950s. In 1930, the government introduced the Land Apportionment Act, which gave white farmers preferential access to land. In 1953, the British engineered a federation between Southern Rhodesia, Nyasaland (Malawi), and Northern Rhodesia (Zambia). The federation is dissolved in 1963, when Zambia and Malawi declared independence. Ian Smith declared independence for Southern Rhodesia in 1965 under white minority rule despite British and international protests. Black nationalists, ZANU and ZAMU, responded with a guerrilla campaign. The guerrillas were partly armed and trained by the Soviets, Chinese, and Cubans. The international community responded with sanctions. The government responded to the sanctions with an import-substitution policy. The economy initially weathered the conflict and sanctions but by the late 1970s it was struggling. In 1979, a settlement was reached between the government and guerrillas. In 1980, Robert Mugabe of ZANU was elected in free elections. The country was renamed Zimbabwe. In 1997, Mugabe began a land redistribution program which led to violence and economic crisis. In 2017, Mugabe was forced to resign by the military. The new government has begun working with the IMF to improve macroeconomic stability, but needs to stay the course.