In 2010, the World Bank named Zambia one of the world’s fastest economically reformed countries. The Common Market for Eastern and Southern Africa (COMESA) is headquartered in the capital Lusaka. Zambia is one of the most highly urbanized countries in sub-Saharan Africa with 44% of the population concentrated in a few urban areas along the major transport corridors, while rural areas are sparsely populated. Unemployment and underemployment in urban areas are serious problems, while most rural Zambians are subsistence farmers. The population was estimated at 12,935,000 by the Zambian government in 2009. The population is concentrated mainly around Lusaka in the south and the Copper belt Province to the northwest.

Zambia ranked 117th out of 128 countries on the 2007 Global Competitiveness Index, which looks at factors that affect economic growth. Social indicators continue to decline, particularly in measurements of life expectancy at birth (about 40.9 years) and maternal mortality (830 per 100,000 pregnancies), as reported by Human Development Reports. The country’s rate of economic growth cannot support rapid population growth or the strain which HIV/AIDS-related issues place on the economy. The Zambian economy has historically been based on the copper mining industry. The Zambian government is pursuing an economic diversification program to reduce the economy’s reliance on the copper industry. This initiative seeks to exploit other components of Zambia’s rich resource base by promoting agriculture, tourism, gemstone mining, and hydro-power. Agriculture plays a very important part in Zambia’s economy providing many more jobs than the mining industry. Zambia was ranked the 127th safest investment destination in the world in the March 2011 Euromoney Country Risk rankings.

In 2003, exports of nonmetals increased by 25% and accounted for 38% of all export earnings, previously 35%. The Zambian government has recently been granting licenses to international resource companies to prospect for minerals such as nickel, tin, copper and uranium, as reported by Penny Shares Online. It is hoped that nickel will take over from copper as the country’s top metallic export. In 2009, Zambia has been badly hit by the world economic crisis, as reported by the Times. The Zambian market is still quite poor with an annual nominal GDP per capita of $1600, as measured by the IMF in 2011. Asa result, the country’s nominal GDP was a paltry $18.4 billion in 2011. There are, however, positive macroeconomic signs, rooted in reforms implemented in the early and mid-1990s. Zambia’s floating exchange rate and open capital markets have provided useful discipline on the government, while at the same time allowing continued diversification of Zambia’s export sector, growth in the tourist industry, and procurement of inputs for growing businesses. Some parts of the Copper Belt have experienced a significant revival as spin-off effects from the massive capital reinvestment are experienced. As a result, Zambia posted a healthy growth rate of 6.7% in 2011.

Overall, Zambia is still a promising market for businesses to trade in. The World Bank ranked it at 84th in its annual Ease of Doing Business indicator for 2012. A ranking which is higher than even some more developed countries. The same indicator ranked Zambia at 79th for Protecting Investors, 153rd for Trading Across Borders, and 85th for Enforcing Contracts. So while the overall market might still be small and poor, it is growing at a reasonably fast rate and their is still plenty of opportunity to take advantage of the market. The government continues to put in place, policies that are favorable to business investment.

-Jay Zadey

Laos is a single-party socialist republic. The capital city is Vientiane. Other large cities include Luang Prabang, Savannakhet and Pakse. The official language is Lao. Most people are Lao with a significant proportion of indigenous peoples as well. It is a rising power in providing electricity to neighboring countries such as Thailand, China and Vietnam and the economy is accelerating rapidly with the demands for its metals, as reported by the Financial Times. It is a member of the Asia-Pacific Trade Agreement, Association of Southeast Asian Nations, East Asia Summit and La Francophonie. Its population was estimated to be 6.5 million in 2012, by the US State Department.

The Lao economy depends heavily on investment and trade with its neighbours, Thailand, Vietnam, and, especially in the north, China. Pakxe has also experienced growth based on cross-border trade with Thailand and Vietnam. In 2011, the Lao Securities Exchange began trading. Subsistence agriculture still accounts for half of the GDP and provides 80% of employment. Only 4.01% of the country is arable land, and 0.34% used as permanent crop land,the lowest percentage in the Greater Mekong Subregion, as reported by the Asian Development Bank. Rice dominates agriculture, with about 80% of the arable land area used for growing rice. Approximately 77% of Lao farm households are self-sufficient in rice, as reported by the Lao_IRRI Project. The economy receives development aid from the IMF, ADB and other international sources, and foreign direct investment for development of the society, industry, hydropower and mining, most notably copper and gold. Tourism is the fastest-growing industry in the country. Economic development in Laos has been hampered by brain drain, with a skilled emigration rate of 37.4% in 2000, as reported by the World Bank.

Laos is rich in mineral resources but imports petroleum and gas. Metallurgy is an important industry, and the government hopes to attract foreign investment to develop the substantial deposits of coal, gold, bauxite, tin, copper and other valuable metals. In addition, the country’s plentiful water resources and mountainous terrain enable it to produce and export large quantities of hydroelectric energy. Of the potential capacity of approximately 18,000 megawatts, around 8,000 megawatts have been committed for exporting to Thailand and Vietnam, as mentioned in a report by the Asian Development Bank. The tourism sector has grown rapidly, from 80,000 international visitors in 1990, to 1.876 million in 2010. Tourism is expected to contribute US$679.1 million to gross national product in 2010, rising to US$1,585.7 million by 2020. In 2010, one in every 10.9 jobs was in the tourism sector. Export earnings from international visitors and tourism goods are expected to generate 15.5% of total exports or US$270.3 million in 2010, growing in nominal terms to US$484.2 million (12.5% of total) in 2020, as predicted by the World Travel & Tourism Council.

Overall, there are still some major problems with trading in Laos. The market is still relatively poor to sell into, with a nominal GDP per capita measured at $1,003.71 by the IMF in 2010. In turn the nominal GDP was also small, at $6.341 billion. The World Bank also ranked Laos at 165th in its Ease of Doing Business rankings for 2012, so it was ranked in the very lowest tier of countries. The same survey ranked Laos 182nd for Protecting Investors, 168th for Trading Across Borders, and 110th for Enforcing Contracts. So clearly these rankings indicate, that Laos still has a long way to go before its considered as a friendly environment for businesses to invest in.

-Jay Zadey

Uzbekistan’s economy relies mainly on commodity production, including cotton, gold, uranium, potassium, and natural gas. Despite the declared objective of transition to a market economy, Uzbekistan continues to maintain rigid economic controls, which often repel foreign investors. The policy of gradual, strictly controlled transition has nevertheless produced beneficial results in the form of economic recovery after 1995. Uzbekistan has a very low GDP per capita (US$1,320 in current dollars in 2010, giving a PPP equivalent of US$3,015), as estimated by the IMF. In turn, the nominal GDP was $37.290 billion in 2010.

By GNI per capita in PPP equivalents Uzbekistan ranks 169 among 209 countries; among the 12 CIS countries, only Kyrgyzstan and Tajikistan had lower GNI per capita in 2006. Economic production is concentrated in commodities: Uzbekistan is now the world’s sixth-largest producer and second-largest exporter of cotton, as well as the seventh largest world producer of gold, as reported by Irin News. Facing a multitude of economic challenges upon acquiring independence, the government adopted an evolutionary reform strategy, with an emphasis on state control, reduction of imports and self-sufficiency in energy. The gradualist reform strategy has involved postponing significant macroeconomic and structural reforms. The state in the hands of the bureaucracy has remained a dominant influence in the economy. Corruption permeates the society and grows more rampant over time: Uzbekistan’s 2005  Corruption Perception Index was 137 out of 159 countries, whereas in 2007 Uzbekistan was 175th out of 179 countries. A February 2006 report on the country by the International Crisis Group suggests that revenues earned from key exports, especially cotton, gold, corn and increasingly gas, are distributed among a very small circle of the ruling elite, with little or no benefit for the populace at large, as reported by the Voice of America.

According to the Economist Intelligence Unit, “the government is hostile to allowing the development of an independent private sector, over which it would have no control”. Thus, the middle class is marginalized economically and, consequently, politically. The economic policies have repelled foreign investment, which is the lowest per capita in the CIS, as mentioned in a report by the US State Department in 2011. According to EBRD transition indicators,[18] Uzbekistan’s investment climate remains among the least favorable in the CIS, with only Belarus and Turkmenistan ranking lower. The unfavorable investment climate has caused foreign investment inflows to dwindle to a trickle. It is believed that Uzbekistan has the lowest level of FDI per capita in the CIS. Since Uzbekistan’s independence, U.S. firms have invested roughly $500 million in the country, but due to declining investor confidence, harassment, and currency convertibility problems, numerous international investors have left the country or are considering leaving.

As a result, the Uzbek market is a very poor area for businesses to invest in. While the population might be of mentionable size at 29,559,100, as measured by the Uzbek government in 2011, it is quite poor at a low GDP per capita. Plus, with the addition of a poor investment climate, trading in Uzbekistan is simply not possible for businesses looking to make a profit in the long term. However, it should be mentioned that Uzbekistan has maintained very high growth rates in the past.  According to IMF estimates, the GDP in 2008 will be almost double its value in 1995 (in constant prices). According to the forecast by the Asian Development Bank, GDP in Uzbekistan in 2009 is expected to grow by 7%. Meanwhile, in 2010 the Uzbekistan GDP growth is predicted at 6.5%. But without strong protections for business property rights, their is very little chance the foreign businesses can take advantage of this growth.

-Jay Zadey

There has been a growing chorus of voices, ranging from analysts to investors, that say that China is possibly at the start of its “hard landing”. After nearly 3 decades of record breaking growth, the Chinese economy is finally showing signs of stress. With recent growth rates in the 8% range as opposed to the regular double digit growth rates that the Chinese economy was used to. While the 8% growth range is something that most countries would only dream of, most analysts say that China needs at least 9% in order to maintain political stability. Something which became sorely apparent when in 2011, there were some major riots in Southeast China as some factories slowed and laid off workers. Which signals that the Chinese system is not ready to cope with any major long term economic slowdown, something which is definitely likely considering the global economic environment and Chinese economic malaise.

According to a recent article by Gordon Chang, a commentator of Forbes, China is showing all the signs of a pending slowdown.  ”Electricity consumption, the best indicator of Chinese economic activity, declined 7.5 percent. China’s aggregate financing, another good signal, collapsed, falling by almost half. New lending is the lowest it has been in five years. Bellwether car sales? They tumbled 23.8 percent. Property prices were off for the fifth-straight month. Exports and imports were both down. Especially important, it appears that demand from consumers for foreign goods skidded. Foreign direct investment fell 0.3 percent, the third-straight month of decline, due largely to troubles in Europe. What’s going up? Perhaps the most hopeful sign is that inflation last month jumped upwards, to 4.5 percent from December’s 4.1 percent.” So while most people see only the overall growth rate, widely considered to be fabricated by the Chinese authorities, the underlying statistics seem to show a different story.

Then there is the overwhelming issue of the real estate sector, responsible for nearly a fifth of China’s economic output. The documentation and establishment of ghost cities is widely known at this point, as various news organizations have done stories showing how there whole cities built in the Chinese interior that are so large and so empty, that only ghosts seem to be the main tenants.  A bubble is definitely evident, when companies in other industries enter the real estate market for higher returns. According to Business Mirror’s, Dexter Roberts, “Companies in the chemical, steel, textile and shoe industries have started up property divisions, too: The chance of a quick return is much higher than in their primary business.” A similar scenario was occurring in the US, right before the mortgage bubble burst. Keep in mind, that the US has yet to fully recover from the bursting of its own mortgage bubble nearly 4 years ago. While the Chinese property bubble is more overvalued than the US bubble was in 2006, according to CNN Money.

While China might have stood some chance of muddling through even a major pending crises like this, the global economic environment is only getting worse. The European Union, is China’s biggest export market, and its going through some major upheavals right now. The Eurozone crises in the best case scenario will plague the European economies for years, driving down growth rates, contracting economies, and reducing consumer/business spending. The worst case scenario would be that the entire Eurozone unravels and the crises spreads to all the other countries dependent on Europe for markets (i.e. China). The only major economy that doesn’t have much to fear from the Euro slump is the US, as pointed out by Jamie Dimon of JP Morgan Chase, mainly because the US economy is based on the domestic consumer. So while the US might continue to muddle through, China will likely go down the drain.

The belief that simply because China has grown so fast for past 3 decades, will mean another 3 decades of equal growth is ludicrous. One only needs to look to the past, to see how such thinking is wishful. The Japanese economy had a similar bubble in the 80′s, and when that burst, the Japanese had nearly 2 “lost” decades of growth. And for those who think that China will somehow manage to defeat the bubble or won’t suffer too seriously from the fallout, keep in mind that there has not been a single economic power in modern history that has managed to overcome laws of economic gravity, and China will probably not be an exception to this rule.

-Jay Zadey

The Bahamas lie in the same island chain as Cuba, Hispaniola and the Turks and Caicos Islands; with a population of 353,658, its capital is Nassau. In terms of GDP per capita, the Bahamas is one of the richest countries in the Americas, according to publications by the CIA, with a GDP per capita estimated at $22,352 by the IMF in 2011. The nominal GDP of the Bahamas was estimated at $7.787 billion in 2011, by the IMF. Something which at first might seem insignificant, but is actually quite astonishing considering that the total population of the Bahamas is not more than half a million people. The Bahamian economy is almost entirely dependent on tourism and financial services to generate foreign exchange earnings. Tourism alone provides an estimated 60% of the GDP and employs about half the Bahamian workforce. In 2004, over half a million tourists visited The Bahamas, most of whom are from the United States.

Financial services constitute the second-most important sector of the Bahamian economy, accounting for up to 17% of GDP, due to the country’s status as an offshore financial center. Agriculture and fisheries industry together account for 5% of GDP. The Bahamas exports lobster and some fish but does not raise these items commercially. There is no largescale agriculture, and most agricultural products are consumed domestically. The Bahamas imports more than $250 million in foodstuffs per year, representing about 80% of its food consumption. The government aims to expand food production to reduce imports and generate foreign exchange. It actively seeks foreign investment aimed at increasing agricultural exports, particularly specialty food items. The government officially lists beef and pork production and processing, fruits and nuts, dairy production, winter vegetables, and shrimp farming as the areas in which it wishes to encourage foreign investment. The Bahamian Government maintains the value of the Bahamian dollar on a par with the US dollar. The Bahamas have also signed several free trade agreements with the US and Canada. As a result, doing trade with the Bahamas is particularly easy for American businesses.

The Bahamas is largely an import/service economy. There are about 110 U.S.-affiliated businesses operating in the Bahamas, and most are associated with tourism and banking. With few domestic resources and little industry, the Bahamas imports nearly all its food and manufactured goods from the United States. American goods and services tend to be favored by Bahamians due to cultural similarities and heavy exposure to American advertising. The Bahamas offers attractive features to the potential investor: a stable democratic environment, relief from personal and corporate income taxes, timely repatriation of corporate profits, proximity to the U.S. with extensive air and telecommunications links, and a good pool of skilled professional workers. The Government of The Bahamas welcomes foreign investment in tourism and banking and has declared an interest in agricultural and industrial investments to generate local employment, particularly in white-collar or skilled jobs. The country’s infrastructure is best developed in the principal cities of Nassau and Freeport, where there are relatively good paved roads and international airports. Electricity is generally reliable, although many businesses have their own backup generators.

Overall, the economy of the Bahamas is great to do business and trade in.  The World Bank ranked it as the 85th easiest country to do business in for 2012. In the same survey, the World Bank ranked it at 48th for trading across borders. The Bahamas has no income tax, corporate tax, capital gains tax, value-added tax , or wealth tax. The best U.S. export opportunities remain in the traditional areas of foodstuffs and manufactured goods: vehicles and automobile parts; hotel, restaurant, and medical supplies; and computers and electronics. Bahamian tastes in consumer products roughly parallel those in the U.S. With approximately 85% of the population of primarily African descent, there is a large and growing market in the Bahamas for “ethnic” personal care products. Merchants in southern Florida have found it profitable to advertise in Bahamian publications. Most imports in this sector are subject to high but nondiscriminatory tariffs. The Bahamas market can be summed up in 5 key points.

1. Low or Minimal taxes

2. Great business friendly enviornment

3. Rich market

4. Multiple areas of opportunity

5. Great geographical location

-Jay Zadey

Canada is a federal state that is governed as a parliamentary democracy and a constitutional monarchy with Queen Elizabeth II as its head of state. It is a bilingual nation with both English and French as official languages at the federal level. One of the world’s most highly-developed countries, Canada has a diversified economy that is reliant upon its abundant natural resources and upon trade particularly with the United States. With the sixth-highest Human Development Index globally, Canada has one of the highest standards of living in the world.

Canada is one of the world’s wealthiest nations, with a 2011 nominal GDP of approximately US$1.75 trillion, and a very high per-capita income measured at $51,147, as reported by the IMF. Canada is a mixed economy, ranking above the US and most western European nations on the Heritage Foundation’s index of economic freedom. Canada is one of the few developed nations that are net exporters of energy, according to Charles Brown in his book World Energy Resources. Canada is additionally one of the world’s largest suppliers of agricultural products; the Canadian Prairies are one of the most important global producers of wheat, canola, and other grains. Canada is also the largest producer of zinc and uranium, and is a leading exporter of many other natural resources, such as gold, nickel, aluminum, and lead. Canada is unusual among developed countries in the importance of the primary sector, with the logging andoil industries being two of Canada’s most important. Canada also has a sizable manufacturing sector, centered in Central Canada, with the automobile industry and aircraft industry especially important.

The 2011 Canadian census counted a total population of 33,476,688, an increase of around 5.9% over the 2006 figure. The Canadian population is forecast to increase continually on an annual basis due to high levels of immigration and moderate domestic birth rates.  The US is Canada’s primary market for goods with the US economy consuming 79.4% of all Canadian exports in 2010. The Canadian economy can be broken down along the following sectors agriculture: 2.2%, industry: 26.3%, services: 71.5%. With education and health sectors as two of Canada’s largest service sectors, but both are largely under the purview of the government. The health care industry has been quickly growing, and is the third largest in Canada. Its rapid growth has led to problems for governments who must find money to fund it. While Canada’s main industries are transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum and natural gas.

Overall, Canada is one of the best markets to do trade in. It is right next to the US, meaning that Canada can serve as a North American base for expanding into the US. Canada was ranked as the 13th easiest country to do business in for 2012, according to the World Bank’s annual survey. Some Canadian provinces have also eliminated certain taxes in order to stimulate investment.  In Ontario the corporate capital tax was eliminated July 1, 2010, for Ontario corporations primarily engaged in manufacturing or resource activities. In British Columbia the corporate capital tax was eliminated as of April 1, 2010. In essence, the Canadian government tries to make the environment for business as easy as possible, which is why it is such a great country to do trade in.

-Jay Zadey

The atolls of Maldives encompass a territory spread over roughly 90,000 square kilometres, making it one of the world’s most geographically dispersed countries. Its population of 328,536 (2012) inhabits 200 of its 1,192 islands, according to the Maldives government. Maldives’ capital and largest city Malé had a population of 103,693 in 2006. Maldives is the smallest Asian country in both population and land area. The Maldivian government began an economic reform program in 1989, initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalised regulations to allow more foreign investment. Real GDP growth averaged over 7.5% per year for more than a decade.

Today, the Maldives’ largest industry is tourism, accounting for 28% of GDP and more than 60% of the Maldives’ foreign exchange receipts. Fishing is the second leading sector. The Maldivian economy is to a large degree based on tourism. In late December 2004, the major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $400 million. As a result of the tsunami, the GDP contracted by about 3.6% in 2005. A rebound in tourism, post-tsunami reconstruction, and development of new resorts helped the economy recover quickly and showed an 18% increase on 2006. The nominal GDP of the Maldives is $2.062 billion, while its GDP per capita was $6,336, as estimated by the IMF in 2011. The GDP per capita of Maldives is the highest among South Asian nations. As of 2008, 89 resorts in the Maldives offered over 17,000 beds and hosted over 600,000 tourists annually, according to the Ministry of Tourism.

For many centuries the Maldivian economy was entirely dependent on fishing and other marine products. Fishing remains the main occupation of the people and the government gives priority to the fisheries sector. As of 2010, fisheries contributed over 15% of the country’s GDP and engaged about 30% of the country’s work force. Fisheries were also the second-largest foreign exchange earner after tourism. Moreover, the opening up of the Exclusive Economic Zone of the Maldives for fisheries has further enhanced the growth of the fisheries sector. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labour. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 7% of GDP. New industries that have since emerged include printing, production of PVC pipes, brick making, marine engine repairs, bottling of aerated water, and garment production.

Overall, Maldives is in many ways similar to Malta, which I wrote on in my previous article. The Maldives are a micro market, meaning that there are cities in other countries that have larger markets than Malta.  While the market may be small it is also relatively rich. However, it is likely that businesses that come to this market are looking to service the foreigners that come there than the locals. There aren’t many domestic opportunities in the Maldives, but due to the constant stream of foreign traffic, the Maldives has a large foreign market that businesses can cater to.

-Jay Zadey

Doing business in these markets is usually more difficult and onerous, but their is also much more growth in these markets. The Bloomberg Frontier Markets Index ranked Vietnam at first among the frontier markets, the United Arab Emirates came in second, while Bulgaria and Romania tied for third place. According to Bloomberg, the leading country among frontier markets has been expanding faster than most emerging markets. Vietnam’s GDP has grown 7.2 percent annually on average since 2000. While stocks in the emirates of Dubai and Abu Dhabi trade at some of the cheapest levels worldwide.  It is likely that businesses will start to focus their attention on these newer, smaller, and faster growing markets as the BRICs start to slow down in growth, as they already have.

While China continues to post growth levels that most economies would consider phenomenal, their are already some cracks that are quite visible. The property sector is at the very heart of China’s economy and it has begun to stop growing as the government tries to keep prices down, and fears of a hard landing pick up. While demand for Chinese exports are decreasing as Europe, China’s most important market, is struggling with the Eurozone crises. Plus, it is widely known that official Chinese growth figures are heavily fabricated by government officials. Russia as a BRIC has proven completely inept at living up to its name, with growth rates widely fluctuating and endemic corruption sapping most of its economic vigor. You can read more about the problems with the Russian economy, by reading our Trade in Russia article. While both India and Brazil suffer from high inflation and few economic reforms, due to poor governance. So it is likely that while the BRICs will continue to grow, their will be more promising markets else where.

Which is why Frontier markets are where businesses will find the most growth and stand the best chance of capturing more market share, since these markets are not as crowded as the BRIC markets are. These markets are essentially where the BRIC economies were a decade ago. In talking about the other Frontier markets, Bloomberg Businessweek says the following, Thailand scored well on the index because it’s attracting investors with its agricultural wealth and industrious workforce. Peru, which has grown an average of 5.7 percent annually during the past decade, will benefit from a surge in consumer spending across South America, says Mark Mobius, who oversees about $45 billion as executive chairman of  Templeton Emerging Markets Group. So essentially while the BRICs may be bigger, they are pretty much “settled” as new markets. Its the Frontier markets that businesses can focus on next.

-Jay Zadey

Malta is internationally renowned as a tourist destination, with numerous recreational areas and historical monuments, including nine UNESCO World Heritage Sites. The capital city of Malta is Valletta; the largest town, Birkirkara. The main island comprises many towns, which together form one Larger Urban Zone with a population of 417,608 according to Eurostat. Malta is classified as an advanced economy together with 32 other countries, with an GDP estimated at $8.288 billion and a GDP per capita of $19,746 , according to the International Monetary Fund. Currently, Malta’s major resources are limestone, a favourable geographic location and a productive labour force. Malta also does not have a property tax, and it produces only about 20% of its food needs, has limited freshwater supplies and has no domestic energy sources. The economy is dependent on foreign trade, manufacturing and tourism. Film production is a growing contributor to the Maltese economy, with several big-budget foreign films shooting in Malta each year. The country has increased the exports of many other types of services such as banking and finance. The government is investing heavily in education, including college. In preparation for Malta’s membership in the European Union, which it joined on 1 May 2004, it privatisedsome state-controlled firms and liberalised markets. In 2010, Malta has managed to privatize telecommunications, postal services, shipyards and shipbuilding.

According to the Qatar Financial Center Authority, Malta ranked as the 70th most important financial center. Malta is a popular tourist destination, with 1.2 million tourists every year, according to the Maltese government. Three times more tourists visit than there are residents. Tourism infrastructure has increased dramatically over the years and a number of good-quality hotels are present on the island, although overdevelopment and the destruction of traditional housing is of growing concern. In recent years, Malta has advertised itself as a medical tourism destination, according to the Malta Independent online, and a number of health tourism providers are developing the industry. However, no Maltese hospital has undergone independent international healthcare accreditation. There is a strong manufacturing base for high value-added products like electronics and pharmaceuticals, and the manufacturing sector has more than 250 foreign-owned, export-oriented enterprises. Tourism generates 35% of GDP.  The structure of the Maltese economy can be broken down as agriculture: 1.4%; industry: 18%; services: 80.6%.

Overall, Malta is micro market, meaning that there are cities in other countries that have larger markets than Malta.  While the market may be small it is also relatively rich. However, it is likely that businesses that come to this market are looking to service the foreigners that come there than the locals. Especially, since more than a million foreigners visit Malta on a annual basis, for a wide variety of things such as leisure and medical services, as well as financial services. So businesses likely to gain the most by doing business in Malta are likely to be businesses that are involved in the industries mentioned above.

-Jay Zadey