on on 1 July 1997 it had extensive
trade and investment ties with China. Hong Kong has been further
integrating its economy with China because China's growing openness
to the world economy has increased competitive pressure on Hong
Kong's service industries, and Hong Kong's re-export business from
China is a major driver of growth. Per capita GDP compares with the
level in the four big economies of Western Europe. GDP growth
averaged a strong 5% in 1989-1997, but Hong Kong suffered two
recessions in the past 6 years because of the Asian financial crisis
in 1998 and the global downturn of 2001-2002. The Severe Acute
Respiratory Syndrome (SARS) outbreak also battered Hong Kong's
economy, but 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.

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 joined 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 to the second-highest
rating among all the Central European transition economies.
Inflation has declined substantially, from 14% in 1998 to 4.7% in
2003; unemployment has persisted around the 6% level. Germany is by
far Hungary's largest economic partner. Short-term issues include
the reduction of the public sector deficit and further increasing
the flexibility of the labor markets.

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 12% 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