its budget deficit to below 1% of GDP and
tightened monetary policy, with the result that inflation fell from
20% in 1990 to 3.1% in 2000. Major challenges remaining include the
reduction of unemployment and further restructuring of the economy,
including the privatization of some leading state enterprises.
Growth, 3.8% in 2000, may fall off to 3%-3.5% in 2001.

Greenland:
The economy remains critically dependent on exports of
fish and substantial support from the Danish Government, which
supplies about half of government revenues. The public sector,
including publicly owned enterprises and the municipalities, plays
the dominant role in the economy. Despite several interesting
hydrocarbon and minerals exploration activities, it will take
several years before production can materialize. Tourism is the only
sector offering any near-term potential, and even this is limited
due to a short season and high costs.

Grenada:
In this island economy progress in fiscal reforms and
prudent macroeconomic management have kept annual growth steady
since 1998. The increase in economic activity has been led by
construction and trade. Tourist facilities are being expanded;
tourism is the leading foreign exchange earner. Major short-term
concerns are the rising fiscal deficit and the deterioration in the
external account balance. Grenada shares a common central bank and a
common currency with seven other members of the Organization of
Eastern Caribbean States (OECS).

Guadeloupe:
The economy depends on agriculture, tourism, light
industry, and services. It also depends on France for large
subsidies and imports. Tourism is a key industry, with most tourists
from the US; an increasingly large number of cruise ships visit the
islands. The traditional sugarcane crop is slowly being replaced by
other crops, such as bananas (which now supply about 50% of export
earnings), eggplant, and flowers. Other vegetables and root crops
are cultivated for local consumption, although Guadeloupe is still
dependent on imported food, mainly from France. Light industry
features sugar and rum production. Most manufactured goods and fuel
are imported. Unemployment is especially high among the young.
Hurricanes periodically devastate the economy.

Guam:
The economy depends on US military spending, tourism, and the
export of fish and handicrafts. Total US grants, wage payments, and