chievements, the government has
failed to raise living standards for the average Egyptian, and has
had to continue providing subsidies for basic necessities. The
subsidies have contributed to a growing budget deficit - more than
10% of GDP each year - and represent a significant drain on the
economy. Foreign direct investment remains low. To achieve higher
GDP growth the NAZIF government will need to continue its aggressive
pursuit of reform, especially in the energy sector. Egypt's export
sectors - particularly natural gas - have bright prospects.

El Salvador
The smallest country in Central America, El Salvador has
the third largest economy, but growth has been minimal in recent
years. Hoping to stimulate the sluggish economy, the government is
striving to open new export markets, encourage foreign investment,
and modernize the tax and healthcare systems. Implementation in 2006
of the Central America-Dominican Republic Free Trade Agreement,
which El Salvador was the first to ratify, has strenthened an
already positive export trend. The trade deficit has been offset by
annual remittances from Salvadorans living abroad - equivalent to
more than 15% of GDP - and external aid. With the adoption of the US
dollar as its currency in 2001, El Salvador has lost control over
monetary policy and must concentrate on maintaining a disciplined
fiscal policy. The current government has pursued economic
diversification, with some success in promoting textile production,
international port services, and tourism. It is committed to opening
the economy to trade and investment, and has embarked on a wave of
privatizations extending to telecom, electricity distribution,
banking, and pension funds.

Equatorial Guinea
The discovery and exploitation of large oil
reserves have contributed to dramatic economic growth in recent
years. Forestry, farming, and fishing are also major components of
GDP. Subsistence farming predominates. Although pre-independence
Equatorial Guinea counted on cocoa production for hard currency
earnings, the neglect of the rural economy under successive regimes
has diminished potential for agriculture-led growth (the government
has stated its intention to reinvest some oil revenue into
agriculture). A number of aid programs sponsored by the World Bank
and the IMF have been cut off since 1993, because of corruption and
mismanagement. No longer