islands
and presides over the High Court)

Political parties and leaders: National Progressive Party or NPP

International organization participation: Caricom, CDB, ECLAC
(associate), ICFTU, Interpol (subbureau), OECS, WCL

Diplomatic representation in the US: none (overseas territory of
the UK)

Diplomatic representation from the US: none (overseas territory
of the UK)

Flag description: blue, with the flag of the UK in the upper
hoist-side quadrant and the Montserratian coat of arms centered in
the outer half of the flag; the coat of arms features a woman
standing beside a yellow harp with her arm around a black cross

Economy

Economy--overview: Severe volcanic activity, which began in July
1995, put a damper on this small, open economy throughout 1996-98. A
catastrophic eruption in June 1997 closed the air and sea ports,
causing further economic and social dislocation. Two-thirds of the
12,000 inhabitants fled the island. Some began to return in 1998,
but lack of housing limited the number. The agriculture sector
continued to be affected by the lack of suitable land for farming
and the destruction of crops. Construction was the dominant activity
in 1997 and 1998. GDP probably declined again in 1998. Prospects for
the economy depend largely on developments in relation to the
volcano and on public sector construction activity. The UK has
committed about $100 million in 1996-98 to help reconstruct the
economy.

GDP: purchasing power parity--$36 million (1997 est.)

GDP--real growth rate: -18.5% (1997 est.)

GDP--per capita: purchasing power parity?$NA

GDP--composition by sector:
agriculture: 5.4%
industry: 13.6%
services: 81% (1996 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 5% (1997)

Labor force: 4,521 (1992); note--later substantially lowered by
flight of people from volcanic activity

Labor force--by occupation: community, social, and personal
services 40.5%, construction 13.5%, trade, restaurants, and hotels
12.3%, manufacturing 10.5%, agriculture, forestry, and fishing 8.8%,
other 14.4% (1983 est.)

Unemployment rate: 20% (1996 est.)

Budget:
revenues: $31.4 million
expenditures: $31.6 million, including capital expenditures of $8.4
million (1997 est.)

Industries: tourism, rum, textiles, elect