the outbreak of Palestinian unrest in late September and the
collapse of the BARAK Government - coupled with a cooling off in the
high-technology and tourist sectors - undercut the boom and
foreshadows a slowdown to 2%-3% in 2001.

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
agricultural south, with more than 20% unemployment. Most raw
materials needed by industry and more than 75% of energy
requirements are imported. Since 1992, Italy has adopted budgets
compliant with the requirements of the European Monetary Union
(EMU); wage moderation agreements by representatives of government,
labor, and employers have helped to bring Italy's inflation into
conformity with EMU requirements. Italy's economic performance,
however, has lagged behind that of its EU partners and it must work
to stimulate employment, promote labor flexibility, reform its
expensive pension system, and tackle the informal economy.

Jamaica:
Key sectors in this island economy are bauxite (alumina and
bauxite account for more than half of exports) and tourism. Since
assuming office in 1992, Prime Minister PATTERSON has eliminated
most price controls, streamlined tax schedules, and privatized
government enterprises. Continued tight monetary and fiscal policies
have helped slow inflation - although inflationary pressures are
mounting - and stabilize the exchange rate, but have resulted in the
slowdown of economic growth (moving from 1.5% in 1992 to 0.5% in
1995). In 1996, GDP showed negative growth (-1.4%) and remained
negative through 1999. Serious problems include: high interest
rates; increased foreign competition; the weak financial condition
of business in general resulting in receiverships or closures and
downsizings of companies; the shift in investment portfolios to
non-productive, short-term high yield instruments; a pressured,
sometimes sliding, exchange rate; a widening merchandise trade
deficit; and a growing internal debt for government bailouts to
various ailing sectors of the economy, particularly the financial
sector. Depressed economic conditions in 1999-2000 led to increased
civil unrest, including a mounting crime rate. Jamaica's medium-term
prospects will