hin the Eastern and
Western Hemispheres. Other economic activity includes the
exploitation of natural resources, e.g., fishing, dredging of
aragonite sands (The Bahamas), and production of crude oil and
natural gas (Caribbean Sea, Gulf of Mexico, and North Sea).

Australia
Australia has an enviable, strong economy with a per
capita GDP on par with the four dominant West European economies.
Robust business and consumer confidence and high export prices for
raw materials and agricultural products are fueling the economy,
particularly in mining states. Australia's emphasis on reforms, low
inflation, a housing market boom, and growing ties with China have
been key factors behind the economy's 16 solid years of expansion.
Drought, robust import demand, and a strong currency have pushed the
trade deficit up in recent years, while infrastructure bottlenecks
and a tight labor market are constraining growth in export volumes
and stoking inflation. Australia's budget has been in surplus since
2002 due to strong revenue growth.

Austria
Austria, with its well-developed market economy and high
standard of living, is closely tied to other EU economies,
especially Germany's. The Austrian economy also benefits greatly
from strong commercial relations, especially in the banking and
insurance sectors, with central, eastern, and southeastern Europe.
The economy features a large service sector, a sound industrial
sector, and a small, but highly developed agricultural sector.
Membership in the EU has drawn an influx of foreign investors
attracted by Austria's access to the single European market and
proximity to the new EU economies. The outgoing government has
successfully pursued a comprehensive economic reform program, aimed
at streamlining government and creating a more competitive business
environment, further strengthening Austria's attractiveness as an
investment location. It has implemented effective pension reforms;
however, lower taxes in 2005-06 led to a small budget deficit in
2006 and 2007. Boosted by strong exports, growth nevertheless
reached 3.3% in both 2006 and 2007, although the economy may slow in
2008 because of the strong euro, high oil prices, and problems in
international financial markets. To meet increased competition -
especially from new EU members and Central European countries -
Austria will need to continue restructuring, emphasizin