y line and 54% in
abject poverty. Two-thirds of all Haitians depend on the agriculture
sector, mainly small-scale subsistence farming, and remain
vulnerable to damage from frequent natural disasters, exacerbated by
the country's widespread deforestation. A macroeconomic program
developed in 2005 with the help of the International Monetary Fund
helped the economy grow 1.8% in 2006, the highest growth rate since
1999. Haiti suffers from higher inflation than similar low-income
countries, a lack of investment, and a severe trade deficit. In
2005, Haiti paid its arrears to the World Bank, paving the way for
reengagement with the Bank. The government relies on formal
international economic assistance for fiscal sustainability. In
2006, Haiti held a successful donors conference in which the total
aid pledged exceeded Haiti's request. Remittances are the primary
source of foreign exchange, equaling nearly a quarter of GDP.

Heard Island and McDonald Islands
No indigenous economic activity,
but the Australian Government allows limited fishing around the
islands.

Holy See (Vatican City)
This unique, noncommercial economy is
supported financially by an annual contribution from Roman Catholic
dioceses throughout the world (known as Peter's Pence); by the sale
of postage stamps, coins, medals, and tourist mementos; by fees for
admission to museums; and by the sale of publications. Investments
and real estate income also account for a sizable portion of
revenue. The incomes and living standards of lay workers are
comparable to those of counterparts who work in the city of Rome.

Honduras
Honduras, the second poorest country in Central America and
one of the poorest countries in the Western Hemisphere, with an
extraordinarily unequal distribution of income and massive
unemployment, is banking on expanded trade under the US-Central
America Free Trade Agreement (CAFTA) and on debt relief under the
Heavily Indebted Poor Countries (HIPC) initiative. The country has
met most of its macroeconomic targets, and began a three-year IMF
Poverty Reduction and Growth Facility (PGRF) program in February
2004. The economy relies heavily on a narrow range of exports,
notably bananas and coffee, making it vulnerable to natural
disasters and shifts in commodity prices, but in recent years has
experienced a rapid rise in exports of light manufacturers. Growth
remains de