th the EU's to enhance their
international competitiveness. Switzerland remains a safe haven for
investors, because it has maintained a degree of bank secrecy and
has kept up the franc's long-term external value. Reflecting the
anemic economic conditions of Europe, GDP growth dropped in 2001 to
about 0.8%, to 0.2% in 2002, and to -0.3% in 2003, with a small rise
to 1.8% in 2004. Even so, unemployment has remained at less than
half the EU average.

Syria
Real GDP growth rose to 2.3 percent in 2004, a slight increase
from 2003 when the predominantly statist economy suffered from
disruptions caused by the war in Iraq and other developments in the
region. Annual real GDP growth has averaged 2.3 percent for the last
seven years. The Government of Syria has implemented modest economic
reforms in the last few years, including cutting interest rates,
opening private banks, consolidating some of the multiple exchange
rates, and raising prices on some subsidized foodstuffs.
Nevertheless, the economy remains highly controlled by the
government. Long run economic constraints include declining oil
production and exports and pressure on water supplies caused by
rapid population growth, industrial expansion, and increased water
pollution.

Taiwan
Taiwan has a dynamic capitalist economy with gradually
decreasing guidance of investment and foreign trade by government
authorities. In keeping with this trend, some large government-owned
banks and industrial firms are being privatized. Exports have
provided the primary impetus for industrialization. The trade
surplus is substantial, and foreign reserves are the world's third
largest. Agriculture contributes less than 2% to GDP, down from 32%
in 1952. Taiwan is a major investor throughout Southeast Asia. China
has overtaken the US to become Taiwan's largest export market.
Because of its conservative financial approach and its
entrepreneurial strengths, Taiwan suffered little compared with many
of its neighbors from the Asian financial crisis in 1998. The global
economic downturn, combined with problems in policy coordination by
the administration and bad debts in the banking system, pushed
Taiwan into recession in 2001, the first year of negative growth
ever recorded. Unemployment also reached record levels. Output
recovered moderately in 2002 in the face of continued global
slowdown, fragile consumer confidenc