or educational
system, in particular, has been an obstacle to greater productivity
and growth. Portugal has been increasingly overshadowed by
lower-cost producers in Central Europe and Asia as a target for
foreign direct investment. The budget deficit surged to an all-time
high of 6% of GDP in 2005, but the government reduced the deficit to
2.6% in 2007 - a year ahead of Portugal's targeted schedule.
Nonetheless, the government faces tough choices in its attempts to
boost Portugal's economic competitiveness while keeping the budget
deficit within the eurozone's 3%-of-GDP ceiling.

Puerto Rico
Puerto Rico has one of the most dynamic economies in the
Caribbean region. A diverse industrial sector has far 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 2004. Growth fell off in 2001-03, largely due to
the slowdown in the US economy, recovered in 2004-05, but declined
again in 2006-07.

Qatar
Qatar is in the midst of an economic boom supported by its
expanding production of natural gas and oil. Economic policy is
focused on development of Qatar's nonassociated natural gas reserves
and increasing private and foreign investment in non-energy sectors.
Oil and gas account for more than 60% of GDP, roughly 85% of export
earnings, and 70% of government revenues. Oil and gas have made
Qatar the highest per-capita income country and one of the world's
fastest growing. Sustained high oil prices and increased natural gas
exports in recent years have helped build Qatar's budget and trade
surpluses and foreign reserves. Proved oil reserves of more than 15
billion barrels should ensure continued output at current levels for
22 years. Qatar's proved reserves of natural gas are roughly 25
trillion cubic meters, about 15% of the world total and third
largest in the world. Qatar has permitted substantial foreign
investment in the development of its gas fields during the last
decade and became the world's top liquefied natural gas (LNG)