r 7.5%
per year for more than a decade. In late December 2004, a major
tsunami left more than 100 dead, 12,000 displaced, and property
damage exceeding $300 million. As a result of the tsunami, the GDP
contracted by about 3.6% in 2005. A rebound in tourism, post-tsunami
reconstruction, and development of new resorts helped the economy
recover quickly. The trade deficit has expanded sharply as a result
of high oil prices and imports of construction material.
Diversifying beyond tourism and fishing and increasing employment
are the major challenges facing the government. Over the longer term
Maldivian authorities worry about the impact of erosion and possible
global warming on their low-lying country; 80% of the area is 1
meter or less above sea level.

Mali
Mali is among the poorest countries in the world, with 65% of
its land area desert or semidesert and with a highly unequal
distribution of income. Economic activity is largely confined to the
riverine area irrigated by the Niger. About 10% of the population is
nomadic and some 80% of the labor force is engaged in farming and
fishing. Industrial activity is concentrated on processing farm
commodities. Mali is heavily dependent on foreign aid and vulnerable
to fluctuations in world prices for cotton, its main export, along
with gold. The government has continued its successful
implementation of an IMF-recommended structural adjustment program
that is helping the economy grow, diversify, and attract foreign
investment. Mali's adherence to economic reform and the 50%
devaluation of the CFA franc in January 1994 have pushed up economic
growth to a 5% average in 1996-2007. Worker remittances and external
trade routes for the landlocked country have been jeopardized by
continued unrest in neighboring Cote d'Ivoire.

Malta
Major resources are limestone, a favorable geographic
location, and a productive labor force. Malta produces only about
20% of its food needs, has limited fresh water supplies, and has few
domestic energy sources. The economy is dependent on foreign trade,
manufacturing (especially electronics and pharmaceuticals), and
tourism. Economic recovery of the European economy has lifted
exports, tourism, and overall growth. Malta adopted the euro on 1
January 2008.

Marshall Islands
US Government assistance is the mainstay of this
tiny island economy. The Marshall Islands received m