ttered Hong Kong's economy, a boom in tourism from
the mainland because of China's easing of travel restrictions, a
return of consumer confidence, and a solid rise in exports resulted
in the resumption of strong growth in late 2003 and in 2004.

Howland Island
no economic activity

Hungary
Hungary has made the transition from a centrally planned to
a market economy, with a per capita income one-half that of the Big
Four European nations. Hungary continues to demonstrate strong
economic growth and acceded to the European Union in May 2004. The
private sector accounts for over 80% of GDP. Foreign ownership of
and investment in Hungarian firms are widespread, with cumulative
foreign direct investment totaling more than $23 billion since 1989.
Hungarian sovereign debt was upgraded in 2000 and together with the
Czech Republic holds the highest rating among the Central European
transition economies; however, ratings agencies have expressed
concerns over Hungary's unsustainable budget and current account
deficits. Inflation has declined from 14% in 1998 to 7% in 2004.
Unemployment has persisted around the 6% level, but Hungary's labor
force participation rate of 57% is one of the lowest in the OECD.
Germany is by far Hungary's largest economic partner. Policy
challenges include cutting the public sector deficit to 3% of GDP by
2008, from about 5% in 2004, and orchestrating an orderly interest
rate reduction without sparking capital outflows.

Iceland
Iceland's Scandinavian-type economy is basically
capitalistic, yet with an extensive welfare system (including
generous housing subsidies), low unemployment, and remarkably even
distribution of income. In the absence of other natural resources
(except for abundant geothermal power), the economy depends heavily
on the fishing industry, which provides 70% of export earnings and
employs 8% of the work force. The economy remains sensitive to
declining fish stocks as well as to fluctuations in world prices for
its main exports: fish and fish products, aluminum, and
ferrosilicon. Government policies include reducing the budget and
current account deficits, limiting foreign borrowing, containing
inflation, revising agricultural and fishing policies, diversifying
the economy, and privatizing state-owned industries. The government
remains opposed to EU membership, primarily because of Icelanders'
concern about