n (EMU) in 1998
and joined with 10 other European countries in launching the euro on
1 January 1999. The year 2000 was marked by moderation in growth,
inflation, and unemployment. The country continues to run a sizable
trade deficit. The government is working to reform the tax system,
to modernize capital plant, and to increase the country's
competitiveness in the increasingly integrated world markets. Growth
is expected to fall off slightly in 2001. Improvement in the
education sector is critical to the long-run catch-up process.

Puerto Rico:
Puerto Rico has one of the most dynamic economies in
the Caribbean region. A diverse industrial sector has surpassed
agriculture as the primary locus of economic activity and income.
Encouraged by duty-free access to the US and by tax incentives, US
firms have invested heavily in Puerto Rico since the 1950s. US
minimum wage laws apply. Sugar production has lost out to dairy
production and other livestock products as the main source of income
in the agricultural sector. Tourism has traditionally been an
important source of income, with estimated arrivals of nearly 5
million tourists in 1999. Prospects for 2001 are clouded by a
probable slowing down in both the construction and tourist sectors
and by increasing inflation, particularly in energy and food prices;
estimated growth will be 2%.

Qatar:
Oil accounts for more than 30% of GDP, roughly 80% of export
earnings, and 66% of government revenues. Proved oil reserves of 3.7
billion barrels should ensure continued output at current levels for
23 years. Oil has given Qatar a per capita GDP comparable to that of
the leading West European industrial countries. Qatar's proved
reserves of natural gas exceed 7 trillion cubic meters, more than 5%
of the world total, third largest in the world. Production and
export of natural gas are becoming increasingly important. Long-term
goals feature the development of offshore petroleum and the
diversification of the economy. In 2000, Qatar posted its highest
ever trade surplus of $6 billion, due mainly to high oil prices and
increased natural gas exports.

Reunion:
The economy has traditionally been based on agriculture.
Sugarcane has been the primary crop for more than a century, and in
some years it accounts for 85% of exports. The government has been
pushing the development of a tourist industry to relieve high
u