ro
or negative GDP growth. This was compounded by falling prices for
Mongolia's primary sector exports and widespread opposition to
privatization. Growth was 10.6% in 2004, 5.5% in 2005, and 7.5% in
2006, largely because of high copper prices and new gold production.
Mongolia's economy continues to be heavily influenced by its
neighbors. For example, Mongolia purchases 80% of its petroleum
products and a substantial amount of electric power from Russia,
leaving it vulnerable to price increases. China is Mongolia's chief
export partner and a main source of the "shadow" or "grey" economy.
The World Bank and other international financial institutions
estimate the grey economy to be at least equal to that of the
official economy, but the former's actual size is difficult to
calculate since the money does not pass through the hands of tax
authorities or the banking sector. Remittances from Mongolians
working abroad both legally and illegally are sizeable, and money
laundering is a growing concern. Mongolia settled its $11 billion
debt with Russia at the end of 2003 on favorable terms. Mongolia,
which joined the World Trade Organization in 1997, seeks to expand
its participation and integration into Asian regional economic and
trade regimes.

Montenegro
The republic of Montenegro severed its economy from
federal control and from Serbia during the MILOSEVIC era and
continues to maintain its own central bank, uses the euro instead of
the Yugoslav dinar as official currency, collects customs tariffs,
and manages its own budget. The dissolution of the loose political
union between Serbia and Montenegro in 2006 led to separate
membership in several international financial institutions, such as
the European Bank for Reconstruction and Development. On January 18,
2007, Montenegro joined the World Bank and IMF. Montenegro is
pursuing its own membership in the World Trade Organization as well
as negotiating a Stabilization and Association agreement with the
European Union in anticipation of eventual membership. Severe
unemployment remains a key political and economic problem for this
entire region. Montenegro has privatized its large aluminum complex
- the dominant industry - as well as most of its financial sector,
and has begun to attract foreign direct investment in the tourism
sector.

Montserrat
Severe volcanic activity, which began in July 1995, has