include chemicals, rubber, and other products. Growth in the
financial sector, which now accounts for about 28% of GDP, has more
than compensated for the decline in steel. Most banks are
foreign-owned and have extensive foreign dealings. Agriculture is
based on small family-owned farms. The economy depends on foreign
and cross-border workers for about 60% of its labor force. Although
Luxembourg, like all EU members, has suffered from the global
economic slump, the country enjoys an extraordinarily high standard
of living - GDP per capita ranks first in the world.

Macau
Macau's well-to-do economy has remained one of the most open
in the world since its reversion to China in 1999. Apparel exports
and tourism are mainstays of the economy. Although the territory was
hit hard by the 1997-98 Asian financial crisis and the global
downturn in 2001, its economy grew 10.1% in 2002, 14.2% in 2003, and
28.6% in 2004 before slowing to 6.7% in 2005. The economic boom was
powered by gambling, tourism, and the construction necessary to
support such endeavours. China's decision to ease travel
restrictions led to a rapid rise in the number of mainland visitors.
The opening of Macau's gaming industry to foreign access in 2001
spurred an increase in public works expenditures. The budget also
returned to surplus in 2002 because of the surge in visitors from
China and a hike in taxes on gambling profits, which generated about
70% of government revenue. Much of Macau's textile industry may move
to the mainland due to the termination in 2005 of the Multi-Fiber
Agreement, which provided a near guarantee of export markets,
leaving the territory more dependant on gambling and trade-related
services to generate growth. The Closer Economic Partnership
Agreement (CEPA) between Macau and mainland China that came into
effect on 1 January 2004 offers many Macau-made products tariff-free
access to the mainland. The range of products covered by CEPA was
expanded on 1 January 2005.

Macedonia
At independence in September 1991, Macedonia was the least
developed of the Yugoslav republics, producing a mere 5% of the
total federal output of goods and services. The collapse of
Yugoslavia ended transfer payments from the central government and
eliminated advantages from inclusion in a de facto free trade area.
An absence of infrastructure, UN sanctions on the downsized
Yugoslavia,