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1994-05-02
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84 lines
<text>
<title>
Iceland: Economy
</title>
<article><hdr>The World Factbook 1993: Iceland
Economy</hdr><body>
<p>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 deepened in
1992 due to severe cutbacks in fishing quotas and falling world
prices for the country's main exports: fish and fish products,
aluminum, and ferrosilicon. Real GDP declined 3.3% in 1992 and is
forecast to contract another 1.5% 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. The
national unemployment rate reached 5% in early 1993, with some parts
of the country experiencing unemployment in the 9-10% range.
Inflation, previously a serious problem, declined from double digit
rates in the 1980s to only 3.7% in 1992.
</p>
<p>National product: GDP - purchasing power equivalent - $4.5 billion
(1992)
</p>
<p>National product real growth rate: -3.3% (1992)
</p>
<p>National product per capita: $17,400 (1992)
</p>
<p>Inflation rate (consumer prices): 3.7% (1992 est.)
</p>
<p>Unemployment rate: 5% (first quarter 1993)
</p>
<p>Budget: revenues $1.8 billion; expenditures $1.9 billion, including
capital expenditures of $191 million (1992)
</p>
<list>
<l>Exports: $1.5 billion (f.o.b., 1992)</l>
<l> commodities: fish and fish products, animal products,
aluminum, ferrosilicon, diatomite</l>
<l> partners: EC 68% (UK 25%, Germany 12%), US 11%, Japan 8%
(1992)</l>
<l>Imports: $1.5 billion (c.i.f., 1992)</l>
<l> commodities: machinery and transportation equipment, petroleum
products, foodstuffs, textiles</l>
<l> partners: EC 53% (Germany 14%, Denmark 10%, UK 9%), Norway
14%, US 9% (1992)</l>
</list>
<p>External debt: $3.9 billion (1992 est.)
</p>
<p>Industrial production: growth rate 1.75% (1991 est.)
</p>
<p>Electricity: 1,063,000 kW capacity; 5,165 million kWh produced,
19,940 kWh per capita (1992)
</p>
<p>Industries: fish processing, aluminum smelting, ferro-silicon
production, geothermal power
</p>
<p>Agriculture: accounts for about 25% of GDP; fishing is most
important economic activity, contributing nearly 75% to export
earnings; principal crops - potatoes, turnips; livestock - cattle,
sheep; self-sufficient in crops; fish catch of about 1.4 million
metric tons in 1989
</p>
<p>Economic aid: US commitments, including Ex-Im (FY70-81), $19.1
million
</p>
<p>Currency: 1 Icelandic krona (IKr)=100 aurar
</p>
<p>Exchange rates: Icelandic kronur (IKr) per US$1 - 63.789 (January
1993), 57.546 (1992), 58.996 (1991), 58.284 (1990), 57.042 (1989),
43.014 (1988)
</p>
<p>Fiscal year: calendar year
</p></body></article></text>