more favorable atmosphere for business initiatives, a more
realistic exchange rate, fairly low inflation, and the continued
support of international organizations. Economic recovery since the
2005 flood-related contraction has been buoyed by increases in
remittances and foreign direct investment. Chronic problems include
a shortage of skilled labor and a deficient infrastructure. The
government is juggling a sizable external debt against the urgent
need for expanded public investment. In March 2007, the
Inter-American Development Bank, Guyana's principal donor, canceled
Guyana's nearly $470 million debt, equivalent to nearly 48% of GDP.
The bauxite mining sector should benefit in the near term from
restructuring and partial privatization, and the state-owned sugar
industry will conduct efficiency increasing modernizations. Export
earnings from agriculture and mining have fallen sharply, while the
import bill has risen, driven by higher energy prices. Guyana's
entrance into the Caricom Single Market and Economy (CSME) in
January 2006 will broaden the country's export market, primarily in
the raw materials sector.

Haiti
Haiti is the poorest country in the Western Hemisphere, with
80% of the population living under the poverty line and 54% in
abject poverty. Two-thirds of all Haitians depend on the
agricultural sector, mainly small-scale subsistence farming, and
remain vulnerable to damage from frequent natural disasters,
exacerbated by the country's widespread deforestation. A
macroeconomic program developed in 2005 with the help of the
International Monetary Fund helped the economy grow 3.5% in 2007,
the highest growth rate since 1999. US economic engagement under the
Haitian Hemispheric Opportunity through Partnership Encouragement
(HOPE) Act, passed in December 2006, has boosted the garment and
automotive parts exports and investment by providing tariff-free
access to the US. Haiti suffers from high inflation, a lack of
investment because of insecurity and limited infrastructure, and a
severe trade deficit. In 2005, Haiti paid its arrears to the World
Bank, paving the way for reengagement with the Bank. The government
relies on formal international economic assistance for fiscal
sustainability. Remittances are the primary source of foreign
exchange, equaling nearly a quarter of GDP and more than twice the
earnings from exports.

Heard Islan