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Economic
overview |
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Iceland's Scandinavian-type economy is basically capitalistic, but with an extensive welfare system, low unemployment, and comparatively even distribution of income. The economy is heavily dependent on the fishing industry, which provides nearly 75% of export earnings and employs 12% of the work force. In the absence of other natural resources - except energy - Iceland's economy is vulnerable to changing world fish prices. The economy, in recession since 1988, began to recover in 1993, posting 0.4% growth, but was still hampered by cutbacks in fish quotas as well as falling world prices for its main exports: fish and fish products, aluminum, and ferrosilicon. The center-right government plans to continue its policies of reducing the budget and current account deficits, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, diversifying the economy, and privatizing state-owned industries. The government, however, remains divided on the issue of EU membership, primarily because of Icelanders' concern about losing control over their fishing resources. |
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GDP: |
purchasing power parity - $5 billion (1995 est.) |
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GDP real growth rate: |
3.2% (1995 est.) |
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GDP per capita: |
$18,800 (1995 est.) |
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GDP composition by sector: |
agriculture: 9.6% industry: 22.1% services: 68.3% |
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Inflation rate (consumer prices): |
2.5% (1995 est.) |
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Labor force: |
127,900 |
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by occupation: |
commerce, transportation, and services 60.0%, manufacturing 12.5%, fishing and fish processing 11.8%, construction 10.8%, agriculture 4.0%, other 0.9% (1990) |
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Unemployment rate: |
3.9% (December 1995) |
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Budget: |
revenues: $1.9
billion expenditures: $2.1
billion, including capital expenditures of $297
million |
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Industries: |
fish processing, aluminum smelting, ferrosilicon production, geothermal power |
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Industrial production growth rate: |
1.75% (1991 est.) |
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Electricity: |
capacity: 1,070,000
kW production: 4.7
billion kWh consumption
per capita: 16,458
kWh |
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Agriculture: |
potatoes, turnips; cattle, sheep; fish catch of about 1.1 million metric tons in 1992 |
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Exports: |
$1.6 billion
(f.o.b., 1994) commodities: fish and
fish products, animal products, aluminum,
ferrosilicon, diatomite partners: EC 68%
(UK 25%, Germany 12%), US 11%, Japan 8%
(1992) |
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Imports: |
$1.5 billion
(c.i.f., 1994) commodities: machinery
and transportation equipment, petroleum products,
foodstuffs, textiles partners: EC 53%
(Germany 14%, Denmark 10%, UK 9%), Norway 14%, US
9% (1992) |
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External debt: |
$2.5 billion (1993 est.) |
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Currency: |
1 Icelandic krona (IKr) = 100 aurar |
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Exchange rates: |
Icelandic kronur (IKr) per US$1 - 65.970 (January 1996), 64.692 (1995), 69.944 (1994), 67.603 (1993), 57.546 (1992), 58.996 (1991) |
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Fiscal year: |
calendar year |
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