narrow export base in agricultural goods. Squash, coconuts, bananas,
and vanilla beans are the main crops, and agricultural exports make
up two-thirds of total exports. The country must import a high
proportion of its food, mainly from New Zealand. Tourism is the
second largest source of hard currency earnings following
remittances. The country remains dependent on external aid and
remittances from Tongan communities overseas to offset its trade
deficit. The government is emphasizing the development of the
private sector, especially the encouragement of investment, and is
committing increased funds for health and education. Tonga has a
reasonably sound basic infrastructure and well-developed social
services. High unemployment among the young, a continuing upturn in
inflation, and rising civil service expenditures are major issues
facing the government.

Trinidad and Tobago
Trinidad and Tobago, the leading Caribbean
producer of oil and gas, has earned a reputation as an excellent
investment site for international businesses. Tourism is a growing
sector, although not proportionately as important as in many other
Caribbean islands. The economy benefits from low inflation and a
growing trade surplus. Prospects for growth in 2004 are good as
prices for oil, petrochemicals, and liquified natural gas are
expected to remain high, and foreign direct investment continues to
grow to support expanded capacity in the energy sector. The
government is coping with a rise in violent crime.

Tromelin Island
no economic activity

Tunisia
Tunisia has a diverse economy, with important agricultural,
mining, energy, tourism, and manufacturing sectors. Governmental
control of economic affairs while still heavy has gradually lessened
over the past decade with increasing privatization, simplification
of the tax structure, and a prudent approach to debt. Progressive
social policies also have helped raise living conditions in Tunisia
relative to the region. Real growth slowed to a 15-year low of 1.9%
in 2002 because of agricultural drought and lackluster tourism.
Better rains in 2003 and 2004, however, helped push GDP growth above
5% for these years. Tourism also recovered after the end of combat
operations in Iraq. Tunisia is gradually removing barriers to trade
with the European Union. Broader privatization, further
liberalization of the investment code to increase f