ts from
abroad and by foreign loans. Roughly half of the government's
external debt is owed to the US, its major source of economic and
military aid. Israel's GDP, after contracting slightly in 2001 and
2002 due to the Palestinian conflict and troubles in the
high-technology sector, has grown by about 5% per year since 2003.
The economy grew an estimated 5.4% in 2007, the fastest pace since
2000. The government's prudent fiscal policy and structural reforms
over the past few years have helped to induce strong foreign
investment, tax revenues, and private consumption, setting the
economy on a solid growth path.

Italy
Italy has a diversified industrial economy with roughly the
same total and per capita output as France and the UK. This
capitalistic economy remains divided into a developed industrial
north, dominated by private companies, and a less-developed,
welfare-dependent, agricultural south, with 20% unemployment. Most
raw materials needed by industry and more than 75% of energy
requirements are imported. Over the past decade, Italy has pursued a
tight fiscal policy in order to meet the requirements of the
Economic and Monetary Unions and has benefited from lower interest
and inflation rates. The current government has enacted numerous
short-term reforms aimed at improving competitiveness and long-term
growth. Italy has moved slowly, however, on implementing needed
structural reforms, such as lightening the high tax burden and
overhauling Italy's rigid labor market and over-generous pension
system, because of the current economic slowdown and opposition from
labor unions. But the leadership faces a severe economic constraint:
Italy's official debt remains above 100% of GDP, and the government
has found it difficult to bring the budget deficit down to a level
that would allow a rapid decrease in that debt. The economy
continues to grow by less than the euro-zone average and growth is
expected to decelerate from 1.9% in 2006 and 2007 to under 1.5% in
2008 as the euro-zone and world economies slow.

Jamaica
The Jamaican economy is heavily dependent on services, which
now account for more than 60% of GDP. The country continues to
derive most of its foreign exchange from tourism, remittances, and
bauxite/alumina. Remittances account for nearly 20% of GDP and are
equivalent to tourism revenues. Jamaica's economy, already saddled
with a recor