griculture are being developed to diversify the
local economy. Recent test drilling for oil may pave the way for
development of the energy sector.

Saint Vincent and the Grenadines
Economic growth slowed slightly in
2007 after reaching a 10 year high of nearly 7% in 2006, but is
expected to remain robust, hinging upon seasonal variations in the
agricultural and tourism sectors and a recent increase in
construction activity. This lower-middle-income country is
vulnerable to natural disasters - tropical storms wiped out
substantial portions of crops in 1994, 1995, and 2002. In 2007, the
islands had more than 200,000 tourist arrivals, mostly to the
Grenadines. Saint Vincent is home to a small offshore banking sector
and has moved to adopt international regulatory standards. The
government's ability to invest in social programs and respond to
external shocks is constrained by its high debt burden - 25 percent
of current revenues are directed towards debt servicing.

Samoa
The economy of Samoa has traditionally been dependent on
development aid, family remittances from overseas, agriculture, and
fishing. The country is vulnerable to devastating storms.
Agriculture employs two-thirds of the labor force and furnishes 90%
of exports, featuring coconut cream, coconut oil, and copra. The
fish catch declined during the El Nino of 2002-03 but returned to
normal by mid-2005. The manufacturing sector mainly processes
agricultural products. One factory in the Foreign Trade Zone employs
3,000 people to make automobile electrical harnesses for an assembly
plant in Australia. Tourism is an expanding sector, accounting for
25% of GDP; 116,000 tourists visited the islands in 2006. The Samoan
Government has called for deregulation of the financial sector,
encouragement of investment, and continued fiscal discipline, while
at the same time protecting the environment. Observers point to the
flexibility of the labor market as a basic strength for future
economic advances. Foreign reserves are in a relatively healthy
state, the external debt is stable, and inflation is low.

San Marino
The tourist sector contributes over 50% of GDP. In 2006
more than 2.1 million tourists visited San Marino. The key
industries are banking, clothing and apparel, electronics, and
ceramics. Main agricultural products are wine and cheeses. The per
capita level of output and standard of l