reexports, each exceed GDP in dollar value. Even
before Hong Kong reverted to Chinese administration on 1 July 1997
it had extensive trade and investment ties with China. Per capita
GDP compares with the level in the four big countries of Western
Europe. GDP growth averaged a strong 5% in 1989-97. The widespread
Asian economic difficulties in 1998 hit this trade-dependent economy
quite hard, with GDP down 5%. The economy is undergoing a rapid
recovery, with growth of 10% in 2000 to be followed by projected
growth of 5% in 2001.

Howland Island:
no economic activity

Hungary:
Hungary continues to demonstrate strong economic growth and
to work toward accession to the European Union. The private sector
accounts for over 80% of GDP. Foreign ownership of and investment in
Hungarian firms is widespread, with cumulative foreign direct
investment totaling $23 billion by 2000. Hungarian sovereign debt
was upgraded in 2000 to the second-highest rating among all the
Central European transition economies. Inflation - a top economic
concern in 2000 - is still high at almost 10%, pushed upward by
higher world oil and gas and domestic food prices. Economic reform
measures such as health care reform, tax reform, and local
government financing have not yet been addressed by the ORBAN
government.

Iceland:
Iceland's Scandinavian-type economy is basically
capitalistic, yet with an extensive welfare system, low
unemployment, and remarkably even distribution of income. In the
absence of other natural resources (except for abundant hydrothermal
and geothermal power), the economy depends heavily on the fishing
industry, which provides 70% of export earnings and employs 12% of
the work force. The economy remains sensitive to declining fish
stocks as well as to drops in world prices for its main exports:
fish and fish products, aluminum, and ferrosilicon. The center-right
government plans to continue its policies of reducing the budget and
current account deficits, limiting foreign borrowing, containing
inflation, revising agricultural and fishing policies, diversifying
the economy, and privatizing state-owned industries. The government
remains opposed to EU membership, primarily because of Icelanders'
concern about losing control over their fishing resources. Iceland's
economy has been diversifying into manufacturing and service
industries in the last decade, an