sector, with its partial "tax haven"
status, also contributes substantially to the economy. Agricultural
production is limited - only 2% of the land is arable - and most
food has to be imported. The principal livestock activity is sheep
raising. Manufacturing output consists mainly of cigarettes, cigars,
and furniture. Andorra is a member of the EU Customs Union and is
treated as an EU member for trade in manufactured goods (no tariffs)
and as a non-EU member for agricultural products.

Angola
Angola's high growth rate is driven by its oil sector, with
record oil prices and rising petroleum production. Oil production
and its supporting activities contribute about half of GDP and 90%
of exports. Increased oil production supported 12% growth in 2004,
19% growth in 2005, and nearly 17% growth in 2006. A postwar
reconstruction boom and resettlement of displaced persons has led to
high rates of growth in construction and agriculture as well. Much
of the country's infrastructure is still damaged or undeveloped from
the 27-year-long civil war. Remnants of the conflict such as
widespread land mines still mar the countryside even though an
apparently durable peace was established after the death of rebel
leader Jonas SAVIMBI in February 2002. Subsistence agriculture
provides the main livelihood for half of the population, but half of
the country's food must still be imported. In 2005, the government
started using a $2 billion line of credit from China to rebuild
Angola's public infrastructure, and several large-scale projects
were completed in 2006. The central bank in 2003 implemented an
exchange rate stabilization program using foreign exchange reserves
to buy kwanzas out of circulation, a policy that was more
sustainable in 2005 because of strong oil export earnings, and has
significantly reduced inflation. Consumer inflation declined from
325% in 2000 to about 13% in 2006, but the stabilization policy
places pressure on international net liquidity. To fully take
advantage of its rich national resources - gold, diamonds, extensive
forests, Atlantic fisheries, and large oil deposits - Angola will
need to continue reforming government policies and to reduce
corruption. The government has made little progress on reforms
recommended by the IMF such as promoting greater transparency in
government spending and continues to be without a formal monitoring
agr