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. National output declined for the second consecutive year in 1989, and two of the largest fish farms filed for bankruptcy. Other economic activities include livestock raising and aluminum smelting. A fall in the fish catch is expected for 1990, resulting in a continuation of the recession.

GDP: $4.0 billion, per capita $16,200; real growth rate - 1.8% (1989 est.)

Inflation rate (consumer prices): 17.4% (1989 est.)

Unemployment rate: 1.3% (1989 est.)

Budget: revenues $1.5 billion; expenditures $1.7 billion, including capital expenditures of $NA million (1988)

Exports: $1.4 billion (f.o.b., 1988); commodities--fish and fish products, animal products, aluminum, diatomite; partners--EC 58.9% (UK 23.3%, FRG 10.3%), US 13.6%, USSR 3.6%

Imports: $1.6 billion (c.i.f., 1988); commodities--machinery and transportation equipment, petroleum, foodstuffs, textiles; partners--EC 58% (FRG 16%, Denmark 10.4%, UK 9.2%), US 8.5%, USSR 3.9%

External debt: $1.8 billion (1988)

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

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 1.6 million metric tons in 1987

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--60.751 (January 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 1990 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iceland Economy 1990 information contained here. All suggestions for corrections of any errors about Iceland Economy 1990 should be addressed to the CIA.