Overview: Iceland's prosperous Scandinavian-type economy is basically capitalistic, but with extensive welfare measures, low unemployment, and comparatively even distribution of income. 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 economy is vulnerable to changing world fish prices. As a result of climbing fish prices in 1990 and a noninflationary labor agreement, Iceland is pulling out of a recession, which began in mid-1988 with a sharp decline in fish prices and an imposition of quotas on fish catches to conserve stocks. Inflation was down sharply from 20% in 1989 to 8% in 1990.

GDP: $4.2 billion, per capita $16,300; real growth rate 0% (1990)

Inflation rate (consumer prices): 7.8% (1990)

Unemployment rate: 1.8% (1990)

Budget: revenues $1.58 billion; expenditures $1.66 billion, including capital expenditures of $NA million (1990)

Exports: $1.6 billion (f.o.b., 1990); commodities--fish and fish products, animal products, aluminum, diatomite; partners--EC 67.7% (UK 25.3%, FRG 12.7%), US 9.9%, Japan 6%

Imports: $1.7 billion (c.i.f., 1990); commodities--machinery and transportation equipment, petroleum, foodstuffs, textiles; partners--EC 49.8% (FRG 12.4%, Denmark 8.6%, UK 8.1%), US 14.4%, Japan 5.6%

External debt: $3 billion (1990)

Industrial production: growth rate - 0.8% (1988 est.); accounts for 22% of GDP

Electricity: 1,063,000 kW capacity; 5,165 million kWh produced, 20,780 kWh per capita (1989)

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

Agriculture: accounts for about 25% of GDP (including fishing); fishing is most important economic activity, contributing nearly 75% to export earnings; principal crops--potatoes and turnips; livestock--cattle, sheep; self-sufficient in crops; fish catch of about 1.4 million metric tons in 1989

Economic 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--55.216 (January 1991), 58.284 (1990), 57.042 (1989), 43.014 (1988), 38.677 (1987), 41.104 (1986), 41.508 (1985)

Fiscal year: calendar year

NOTE: The information regarding Iceland on this page is re-published from the 1991 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iceland Economy 1991 information contained here. All suggestions for corrections of any errors about Iceland Economy 1991 should be addressed to the CIA.