Overview: The economy is heavily dependent on the fishing industry, which provides nearly 75% of export earnings. In the absence of other natural resources, Iceland's one-sided economy is highly vulnerable to changing world fish prices. Other economic activities include livestock raising and aluminum smelting. In 1987 GDP showed substantial growth and expanded by more than 6%; this growth helped to reduce the unemployment rate to below 1%, among the lowest in the world. Inflation remained high, however, at a level near 20%.

GDP: $5.3 billion, per capita $21,660; real growth rate 6.6% (1987)

Inflation rate (consumer prices): 18.2% (1987)

Unemployment rate: 0.5% (1987)

Budget: revenues $1.04 billion; expenditures $1.2 billion, including capital expenditures of $132 million (1987)

Exports: $1.4 billion (f.o.b., 1987); @m5commodities--fish and fish products, animal products, aluminum, diatomite; @m5partners--EC 54.2% (UK 20.4%, FRG 9.1%, Denmark 3.8%), US 21.7%, USSR 4.2%, less developed countries 2.6%

Imports: $1.6 billion (c.i.f., 1987); @m5commodities--machinery and transportation equipment, petroleum, foodstuffs, textiles; @m5partners--EC 52.9% (FRG 15.2%, Denmark 10.8%, UK 8.2%), US 7.0%, USSR 5.6%, less developed countries 3.1%

External debt: $2.0 billion (June 1987)

Industrial production: growth rate 4.7% (1987 est.)

Electricity: 963,000 kW capacity; 4,919 million kWh produced, 19,950 kWh per capita (1988)

Industries: fish processing, aluminum smelting, ferro-silicon production, hydropower

Agriculture: cattle, sheep, dairying, hay, potatoes, turnips

Aid: US commitments, including Ex-Im (FY70-81) $19.1 million

Currency: krona (plural--kronur); 1 Icelandic krona (IKr) = 100 aurar

Exchange rates: Icelandic kronur (IKr) per US$1--49.292 (January 1989), 43.014 (1988), 38.677 (1987), 41.104 (1986), 41.508 (1985); during 1988 the krona was devalued by 6% in February, 10% in May, and 3% in September

Fiscal year: calendar year

NOTE: The information regarding Iceland on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iceland Economy 1989 information contained here. All suggestions for corrections of any errors about Iceland Economy 1989 should be addressed to the CIA.