(202) 265-6656
consulate(s) general:
New York
US diplomatic representation:
chief of mission:
Ambassador Parker W. BORG
embassy:
Laufasvegur 21, Box 40, Reykjavik
mailing address:
US Embassy, PSC 1003, Box 40, Reykjavik; FPO AE 09728-0340
telephone:
[354] (1) 629100
FAX:
[354] (1) 629139
Flag:
blue with a red cross outlined in white that extends to the edges of
the flag; the vertical part of the cross is shifted to the hoist side
in the style of the Dannebrog (Danish flag)

@Iceland, Economy

Overview:
Iceland's Scandinavian-type economy is basically capitalistic, but
with an extensive welfare system, relatively 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 workforce. In the absence of other
natural resources - except energy - Iceland's economy is vulnerable to
changing world fish prices. Iceland's economy has been in recession
since 1988. The recession continued in 1993 due to a third year of
cutbacks in fishing quotas as well as falling world prices for the
country's main exports: fish and fish products, aluminum, and
ferrosilicon. Real GDP declined 3.3% in 1992 and rose slightly, by
0.4%, in 1993. The center-right government's economic goals include
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 recession has led to a wave of bankruptcies and
mergers throughout the economy, as well as the highest unemployment of
the post-World War II period. Inflation, previously a serious problem,
declined from double digit rates in the 1980s to only 3.7% in 1992-93.
National product:
GDP - purchasing power equivalent - $4.2 billion (1993)
National product real growth rate:
0.4% (1993 est.)
National product per capita:
$16,000 (1993)
Inflation rate (consumer prices):
4% (1993)
Unemployment rate:
4.5% (1993 est.)
Budget:
revenues:
$1.8 billion
expenditures:
$1.9 billion, including capital expenditures of $191 million (1992)
Exports:
$1.5 billion (f.o.b., 1992)
commodities:
fish and fish products, animal products, aluminum, ferrosilicon,
diatomite
partners:
EC 68% (UK 25%, FRG 12%), US 11%, Japan 8% (1992)
Imports:
$1.5