Mayotte Island economy: French dependent.

The Mayotte Island is what is termed as a territorial collectivity of France. It is administered by France, and elects one member of the French Senate, as also one of the French National Assembly.

As any typical small Island with limited resources, Mayotte has its share of problems. Rising sea levels, limited economic activity, lack of trained manpower, raw materials, compulstion to import major part of food and other requirements, are some of the issues faced by this Island. But for the fact that it is part of France, it might be in deeper trouble.

Mayotte’s economy is an agricultural economy, and produces vanilla, the popular essence, another essence called ylang ylang, copra, and coffee. As for industries, there is a tiny and developing lobster and shrimp industry that caters to the export market, and some construction activity. France of course, is the Island’s major trading partner, and Mayotte has full access to French markets though it is not in a position to exploit this benefit fully. Tourism however, has not developed much because of its remoteness, even though that factor could in fact become the very reason for developing this industry.

French financial aid plays an important role in the economy of Mayotte and contributes a good percentage of its GDP. The future development of the Island depends on France. The Island has one airport and a seaport, and roadways that are for most part paved.

The year 2011 is going to be an important date in Mayotte’s future as French laws would come into effect on the Island, and the local laws would come for a review and amendments. That could cause tension on the Island, and it remains to be seen how the situation may develop.

Aruban economy: Periodic waves of prosperity.

First it was gold, then oil, and now tourism. Aruba has a interesting economic history with waves of prosperity sweeping the Island at different times on the back of a different industry.

Till the beginning of the twentieth century, the Island’s economy was transformed with the discovery and exploitation of gold reserves. For nearly a century, the Island maintained its golden hue, until it was replaced with an equally valuable resource, though black in color.

The discovery of oil soon led to another boom, and Aruba rode piggyback on the slippery stuff to achieve great heights economically. At one time Aruba boasted of the world’s largest oil refinery and storage facility. And now, tourism is witnessing a similar boom, so much so, that the Government has imposed certain restrictions on its further expansion!

Aruba is an independent entity under the Kingdom of the Netherlands, and is a popular tourist destination. The development of tourism has given a boost to related industries like construction, hotels, transport, telecommunications, etc. All this has created tremendous opportunities for Arubans to improve their lifestyle and lead a more prosperous life.

Apart from tourism, Aruba exports live animals and animal products, machinery and equipment, and imports crude oil, chemicals, foodstuffs, etc. The United States and the Netherlands are Aruba’s major trading partners. There is very little unemployment on the Island.

The Government has initiated steps to diversify the economy in order to reduce its dependence on tourism. Another area of concern is the budget and trade deficits. A potential area of internal disturbance and conflict in regard to total independence from the Netherlands seems to have subsided, at least for the present.

St.Kitts and Nevis economy: Minor hiccups.

Like most of its Caribbean counterparts, the Island of St. Kitts and Nevis is a tourist destination providing all the standard amenities expected of a first rate tourist center.

Tourism earns top dollar for the nation, while providing employment to a substantial number of the workforce. Star hotels, golf courses, beaches, cruise ship piers, et al are available and well maintained to cater to tourists, especially the upper end customers.

The Government has taken several steps to make the islands a preferred destination, not only for tourists , but also for investors. Free trade zones, export processing zones and industrial sites are strategically located and provide all sorts of inducements to the investors to set up shop here.

Exemptions from excise duties and income tax, provision for foreign currency account maintenance, and special labor agreements are some of the attractions that draw the foreign investors to the Islands. St. Kitts and Nevis has a unique system of Ordinances to provide relief to investors in the shape of the Hotel Aids Ordinance that gives relief from customs duties and pier fees.

The Income Tax Ordinance gives special tax relief and benefits for hotel owners. The St. Kitts and Nevis Investment Promotion Agency (SKIPA) has played a prominent role in promoting investment in the Islands. St. Kitts and Nevis is also a beneficiary of the Caribbean Basin Initiative that allows 95% of its goods duty free entry into the U.S. This is an important benefit that companies seeking entry to the U.S. markets can take advantage of, by setting up shop on the Island.

According to the IMF, St. Kitts and Nevis is likely to suffer in the short term on account of global downturn and heavy debt burden, but medium and long term growth prospects are bright.

Antigua and Barbuda economy: Temporary setback.

The twin-island nation of Antigua and Barbuda is part of the beautiful chain of Islands in the Caribbean that are synonymous with first class tourism. With beautiful beaches , clean and green, and special packages for honeymooners and water sports of the highest quality, they are a must visit on the itinerary of the globe trotters.

Tourism and financial services have now become the economic mainstay of the Islands. Low taxes and a liberal corporate regime have made the Islands a tax haven, and in fact, have got them into trouble on account of money laundering laws that are being taken more seriously nowadays.

Apart from these two major activities, the Government is diversifying into manufacturing, fishing and even agriculture. Gaming and gambling are also gaining in importance as revenue spinners catering to foreign tourists.

Sugarcane, cotton, fruits, and vegetables are the major agricultural produce, while tourism, construction, financial services, and light manufacturing are the industrial activities. Over 80% of the workforce is engaged in services, followed by 11% in industry, and 7% in agriculture. The GDP per ca pita of the Island in 2008 was around USD 19000.00. The Islands export electronic components, foodstuffs, handicrafts and petroleum products, and import machinery and equipment, chemicals, oil, livestock, etc.

The Islands have signed an Economic Partnership Agreement with the EU. They receive aid from the EU under its Economic Development Fund. The Islands also benefit from the U.S. Caribbean Basin Initiative that gives access to U.S. markets for many goods. Another source of revenues to the Islands are American Military bases located on the Islands.

Antigua and Barbuda are prosperous Islands that have enjoyed good growth for several years until the global economic crisis arrived on the scene. There is enough scope for these Islands to regain their earlier growth rates in future.

Martinique economy: Part and parcel of France.

The Caribbean Island of Martinique is one of the most beautiful and romantic of the Caribbean Islands and is part and parcel of France, the Mainland, that takes care of the Island in more ways than one.

Martinique enjoys several benefits vis a vis France, like free access to its markets, and those of the EU. Large infusions of economic aid, in cash and kind, from France have offset the adverse effects of the global economic recession, as well as the chronic problem of trade deficits.

Being a small entity with limited resources, Martinique has to import most of its requirements resulting in huge trade deficits. That is where the advantage of being part of the French Republic comes in handy.

Services constitute almost 80% of the GDP, while providing employment to 75% of the workforce. Industry contributes 11% of the GDP, while employing 17% of the workforce, and agriculture contributes about 6% of the GDP, employing 10% of the labor force.

Bananas are the most important agricultural produce. Other produce includes pineapples, avocados, vegetables, and sugarcane. Sugarcane production and sugar manufacture have declined in importance in recent years. Industries include rum manufacture, oil refining, sugar, tourism, and construction. Rum manufacture has replace sugar as an important economic activity.

By far tourism is the most important industry of Martinique today, and it offers several delights for the visitor. It is rated as a prime honeymoon destination, and an excellent place for scuba diving with its warm waters ideal for such a sport. Another star attraction are its beautiful and clean beaches.

Martinique exports rum, sugar, fruit mainly bananas and refined petroleum products, and imports crude oil, construction materials, vehicles, apparel and consumer goods. France of course is the major trading partner. Other include Venezuela, Germany, U.S.A., and EU.

Martinique has really nothing much to worry about economically, as it is a small place that France can easily take care of.

New Caledonia: Nickel economy doing well.

The French Territory of New Caledonia is the world’s third largest producer of nickel, a key ingredient in the manufacture of steel. The Island holds about 25% of the world’s nickel reserves, and earns 90% of its export revenues from this mineral.

Apart from nickel, chrome and cobalt are also found in commercial quantities. The discovery of iron, copper, and gold have added luster to the Island’s economy. New Caledonia seems destined to become an important mining economy in the Pacific.

The Island nation enjoys a per capita GDP that is said to be higher than New Zealand’s, and enjoys a GDP growth rate of 4.5%. Inflation at the end of fiscal 2009 was less than 1%. Services contribute the major part of the GDP, followed by Industry and Agriculture. However, large infusions of cash from Mainland France help sustain a public service providing employment to a large number of people. In spite of the happy combination of mining riches and cash infusions from France, New Caledonia has suffered a fall in GDP growth from 6% to 3-4% for 2009. The reason being the dip in commodity prices on account of the global economic crisis.

There is now a realization for diversification of its economic activities to avoid the pitfalls of a one commodity economy. New Caledonia is developing trade relations with the larger economies of the Pacific, namely, New Zealand, and Australia and is now reported to have become the second largest importer of New Zealand goods and services in the Pacific.

Tourism and Construction are two areas that are gaining in importance economically for New Caledonia, in not only providing employment to its workforce, but in boosting the country’s GDP and adding to the variety of economic activities that are likely to sustain it in future.

For now New Caledonia seems to be doing well, having escaped the worst effects of the global economic crisis under French protection.

Guadeloupe economy: Riding piggyback on France.

The French Overseas Territory of Guadeloupe has developed into a tourist attraction for visitors from around the globe, offering clean and beautiful beaches. The Island has become a regular stop for cruise ships that bring in loads of tourists and dollars. The majority of the tourists come from U.S.A., who have made Guadeloupe a part of their Caribbean circuit.

The French dependency receives large doses of economic aid from the Mainland. Subsidized exports from France relieve Guadeloupe of a lot of financial burden in importing its necessities. Services contribute about 85% of the country’s GDP, while providing employment to 65% of the workforce. Industry contributes 9% of the GDP and employs 20% of the workforce, and the rest is contributed by the Agricultural sector.

The major agricultural produce of Guadeloupe is Bananas that contribute 50% of its export revenues. Other produce includes eggplant, sugarcane, tropical fruit, and vegetables. The major industries are sugar and rum manufacturing. Guadeloupe exports bananas, sugar and rum and imports foodstuffs, fuels, consumer goods, etc. France is of course, the Island’s major trading partner.

Being a dependency of France has helped Guadeloupe escape the harsh realities of the global economic downturn. Many other independent Island nations are struggling with various economic problems, and some of them face the risk of being swallowed up by rising sea waters.

Guadeloupe has a cozy comfort zone under French rule though the high level of unemployment among the youth is a matter of concern. It is also not clear how long France would continue to exercise control over its overseas possessions, and to what extent it would continue to subsidize them. With the global economic downturn hurting almost all the economies, including the ‘infallible’ ones, it remains to be seen how the future works out for Islands like Guadeloupe.

Cote d’Ivoire economy: Making the right moves.

One of the few countries that appears to have learnt from its past mistakes, Cote d’Ivoire is slowly and steadily moving towrards realizing its potential for economic growth and development. Having recorded a modest growth in GDP of 1.7% in 2007, 2.3% in 2008, and 2.8% in 2009, the country is aiming at 4%+ growth for fiscal 2010.

Nearly 70% of the Ivorian population depends on Agriculture for their sustenance. Cote d’Ivoire is the world’s largest producer of cocoa. Other agricultural produce include coffee, palm oil, bananas, corn, rice, tapioca, cotton, sugar and rubber. Agriculture contributes roughly 28% of the country’s GDP. Among the industries are oil refining, textiles, fertilizers, foodstuffs and beverages. Industry contributes about 22% of the GDP.

According to the IMF, the Ivorian economy has shown resilience in the current global economic crisis, and has a lot of potential for further development. The Government of Cote d’Ivoire ha initiated an ambitious program that comprises the goals of reducing poverty, prudent fiscal management, reforms in the public spending arena, and co-operation with development partners.

Under this program, the Government will aggressively seek to reduce poverty that has steadily increased over the years. it will also aim to achieve a GDP growth of 4.2% on an average, to reduce inflation to 3%, and to bring down the budget deficit to 2% of the GDP.

Macro-economic stability and a sustainable debt position are two important objectives of this plan. Another important task the Government would undertake is to ensure efficient use of public finances and to bring about more transparency and accountability in the process. Lastly, to co-ordinate and co-operate with multilateral institutions like the IMF, in addressing the critical problems facing the country. For example, Cote d’Ivoire has been a beneficiary of the IMF’s Heavily Indebted Poor Countries Initiative.

It may be said that Coted’Ivoire is making the right moves in the sphere of economic management, especially in regard to its pro-poor policies, and should reap a good harvest in the years to come.

Macedonia economy: Crawling out of recession.

The former Yugoslav Republic of Macedonia, considered among the poorest countries in Europe, is slowly crawling out of the recession brought on by the global economic crisis.

According to the International Monetary Fund, Macedonia is likely to record a 2% growth in its economy in the year 2010, after declining by 1.3% this fiscal. The IMF identified, among others, two major problems for Macedonia, namely, the balance of payments position, and its international reserves.

Last week, the Macedonian Parliament voted in a new budget that envisaged a fiscal gap of 2.5% in GDP for 2010. The budget is aimed at maintaining macroeconomic stability, while giving a boost to the economy. There is no increase in taxes and no additional burdens have been imposed on the corporate sector. However, two issues that the Government needs to address are the high levels of unemployment, and the lack of FDI that could help speed up economic development.

The three major components of the Macedonian economy, in order of importance to their contribution to the country’s GDP are Services, that contribute nearly 60% to the GDP, and provide employment to over 50% of the workforce. Among the services, Banking, Real Estate, Telecommunications, and Transportation services are worth mentioning. Second in importance is the manufacturing sector that contributes about 28%+ to the GDP, and provides jobs to over 30% of the workforce. And lastly, the Agriculture sector that contributes about 12% to the GDP, and provides employment to about 20% of the workforce.

Among the major agricultural produce of Macedonia are vegetables, fruits, wine, etc., and the major industries include food and beverages, iron and steel, cement, and pharmaceuticals. Macedonia exports iron and steel, wine, foodstuffs, and tobacco, and imports equipment and machineries, automobiles, chemicals and foodstuffs.

The Macedonian economy appears to be delicately balanced, and an overall improvement in the global economic environment should see the country out of recession, and onto the growth path.

Mexican economy: Dogged by uncertainties.

The trillion dollar economy, that according to Goldman Sachs, would be a leader in the world economy by the year 2050, among others, Mexico presents a contrast between the rich and the poor, the haves and the have not’s in the extreme.

But this free economy, for all its positives, is dogged by uncertainties. For one thing, it depends heavily on exports to the U.S.A that snaps up over 80% of Mexico’s exports. The NAFTA is the magic door that has let the Mexican economy grow beyond expectations. Economic disparity between the northern and southern parts of the country, and between the rich and the poor has been steadily increasing, setting the stage for a probable violent slowdown in the near future. This type of contradiction is also seen on the industrial front, with outdated industries existing side by side with the most sophisticated industrial complexes. Mexico could do with a overhaul of its infrastructure.

Mexico’s GDP is expected to grow by 2.9% in 2010 after registering a poor performance in the current fiscal. Mexico produces wheat, corn, soybean, cotton, and coffee, and also has a thriving livestock industry. On the industrial front, it has activities related to the petroleum, consumer durables, chemicals, food and beverages, textiles, and motor vehicles, among others. The tourism industry is a major industry contributing top dollar to the economy.The country exports oil and oil products, coffee, cotton, and imports electrical equipment, machineries, agricultural machinery, etc. The United States and Canada are its major trading partners.

Though the Mexican economy is said to be picking up at the end of fiscal 2009, with a perceptible drop in the number of unemployed and an increase in the exports, it is still not clear how the situation is likely to shape up in the near future. Much depends on the U.S. which is just about recovering from a recession. Mexico’s export led economy is likely to encounter quite a few roadblocks in the next few months till other economies find their feet and get going.

Undoubtedly, Mexico has great potential for economic development, but for now the times are uncertain.

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