Short facts about the economy in Iceland
| Economy -
overview: |
Iceland's Scandinavian-type economy is
basically capitalistic, yet with an extensive welfare system, low unemployment,
and remarkably even distribution of income. In the absence of other natural
resources (except for abundant hydrothermal and geothermal power), the economy
depends heavily on the fishing industry, which provides 70% of export earnings
and employs 12% of the work force. The economy remains sensitive to declining
fish stocks as well as to drops in 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 remains opposed to EU membership, primarily because
of Icelanders' concern about losing control over their fishing resources.
Iceland's economy has been diversifying into manufacturing and service
industries in the last decade, and new developments in software production,
biotechnology, and financial services are taking place. The tourism sector is
also expanding, with the recent trends in ecotourism and whale watching. Growth
has been remarkably steady over the past five years at
4%-5%. |
| GDP: |
purchasing power parity - $6.85 billion
(2000 est.) |
| GDP - real
growth rate: |
4.3% (2000
est.) |
| GDP - per
capita: |
purchasing power parity - $24,800 (2000
est.) |
| GDP -
composition by sector: |
agriculture: 15% (includes fishing 13%)
industry:
21%
services: 64% (1999
est.) |
| Population
below poverty line: |
NA% |
| Household
income or consumption by percentage share: |
lowest 10%: NA%
highest 10%:
NA% |
| Inflation
rate (consumer prices): |
3.5% (2000
est.) |
| Labor
force: |
159,000
(2000) |
| Labor force
- by occupation: |
agriculture 5.1%, fishing and fish
processing 11.8%, manufacturing 12.9%, construction 10.7%, other services 59.5%
(1999) |
| Unemployment
rate: |
2.7% (January
2001) |
| Budget: |
revenues: $3.5 billion
expenditures: $3.3 billion, including capital
expenditures of $467 million (1999) |
| Industries: |
fish processing; aluminum smelting,
ferrosilicon production, geothermal power;
tourism |
| Industrial
production growth rate: |
1.5% (2000
est.) |
| Electricity
- production: |
7.069 billion kWh
(1999) |
| Electricity
- production by source: |
fossil fuel: 0.07%
hydro: 84.64%
nuclear:
0%
other: 15.29% (1999) |
| Electricity
- consumption: |
6.574 billion kWh
(1999) |
| Electricity
- exports: |
0 kWh
(1999) |
| Electricity
- imports: |
0 kWh
(1999) |
| Agriculture
- products: |
potatoes, turnips; cattle, sheep;
fish |
| Exports: |
$2 billion (f.o.b.,
2000) |
| Exports -
commodities: |
fish and fish products 70%, animal
products, aluminum, diatomite, ferrosilicon |
| Exports -
partners: |
EU 64% (UK 20%, Germany 13%, France 5%,
Denmark 5%), US 15%, Japan 5% (1999) |
| Imports: |
$2.2 billion (f.o.b.,
2000) |
| Imports -
commodities: |
machinery and equipment, petroleum
products; foodstuffs, textiles |
| Imports -
partners: |
EU 56% (Germany 12%, UK 9%, Denmark 8%,
Sweden 6%), US 11%, Norway 10% (1999) |
| Debt -
external: |
$2.6 billion
(1999) |
| Economic aid
- donor: |
$NA |
| Currency: |
Icelandic krona
(ISK) |
| Exchange
rates: |
Icelandic kronur per US dollar - 84.810
(January 2001), 78.676 (2000), 72.335 (1999), 70.958 (1998), 70.904 (1997),
66.500 (1996) |
| Fiscal
year: |
calendar year | Source: World Factbook |
