Iceland Economy 1997

Economy - overview Iceland's Scandinavian-type economy is basically capitalistic, yet withan extensive welfare system, low unemployment, and remarkably even distributionof income. The economy depends heavily on the fishing industry, which provides75% of export earnings and employs 12% of the work force. In the absence ofother natural resources - except energy - Iceland's economy is vulnerableto changing world fish prices. The economy remains sensitive to decliningfish stocks as well as to drops in world prices for its main exports: fishand fish products, aluminum, and ferrosilicon. The center-right governmentplans to continue its policies of reducing the budget and current accountdeficits, limiting foreign borrowing, containing inflation, revising agriculturaland fishing policies, diversifying the economy, and privatizing state-ownedindustries. The government remains opposed to EU membership, primarily becauseof Icelanders' concern about losing control over their fishing resources.

GDP purchasing power parity - $5.3 billion (1996 est.)

GDP - real growth rate 3.3% (1996 est.)

GDP - per capita purchasing power parity - $19,800 (1996 est.)

GDP - composition by sector
agriculture: 9.6%
industry: 22.1%
services: 68.3% (1991)

Inflation rate - consumer price index 2.5% (1996 est.)

Labor force
total: 145,000 (1994)
by occupation: commerce, transportation, and services 60.0%, manufacturing 12.5%, fishingand fish processing 11.8%, construction 10.8%, agriculture 4.0%, other 0.9%(1990)

Unemployment rate 5% (1996)

Budget
revenues: $1.9 billion
expenditures: $2.1 billion, including capital expenditures of $297 million (1994 est.)

Industries fish processing; aluminum smelting, ferrosilicon production, geothermalpower; tourism

Industrial production growth rate 1.75% (1991 est.)

Electricity - capacity 1.1 million kW (1994)

Electricity - production 5 billion kWh (1995)

Electricity - consumption per capita 17,181 kWh (1995 est.)

Agriculture - products potatoes, turnips; cattle, sheep; fish catch of about 1.1 million metrictons in 1992

Exports
total value: $1.67 billion (f.o.b., 1995)
commodities: fish and fish products 75%, animal products, aluminum, ferrosilicon,diatomite
partners: UK 19%, Germany 14%, US 12%, Japan 11%, Denmark 8%, France 7% (1995)

Imports
total value: $1.62 billion (f.o.b., 1995)
commodities: machinery and transportation equipment, petroleum products, foodstuffs,textiles
partners: Germany 11%, Norway 10%, UK 10%, Denmark 9%, US 8%, Sweden 7% (1995)

Debt - external $2.5 billion (1993 est.)

Economic aid $NA

Currency 1 Icelandic krona (IKr) = 100 aurar

Exchange rates Icelandic kronur (IKr) per US$1 - 68.330 (January 1997), 66.500 (1996),64.692 (1995), 69.944 (1994), 67.603 (1993), 57.546 (1992)

Fiscal year calendar year

NOTE: The information regarding Iceland on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iceland Economy 1997 information contained here. All suggestions for corrections of any errors about Iceland Economy 1997 should be addressed to the CIA.