Iceland:
Economy

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Other pages in this profile of Iceland:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition Iceland's Scandinavian-type economy is basically capitalistic, yet with an extensive welfare system (including generous housing subsidies), low unemployment, and remarkably even distribution of income. In the absence of other natural resources (except for abundant geothermal power), the economy depends heavily on the fishing industry, which provides 70% of export earnings and employs 6% of the work force. The economy remains sensitive to declining fish stocks as well as to fluctuations in world prices for its main exports: fish and fish products, aluminum, and ferrosilicon. Substantial foreign investment in the aluminum and hydropower sectors has boosted economic growth which, nevertheless, has been volatile and characterized by recurrent imbalances. Government policies include reducing the current account deficit, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, and diversifying the economy. 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. The 2006 closure of the US military base at Keflavik had very little impact on the national economy; Iceland's low unemployment rate aided former base employees in finding alternate employment.
GDP (purchasing power parity)	Definition - World rank and map $12.14 billion (2007 est.)
GDP (official exchange rate)	Definition $20 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 3.8% (2007 est.)
GDP - per capita	Definition - World rank and map $38,800 (2007 est.)
GDP - composition by sector	Definition agriculture: 5.2% industry: 25.7% services: 69.1% (2007 est.)
Labor force	Definition 181,000 (2007 est.)
Labor force - by occupation	Definition agriculture: 5.1% industry: 23% services: 71.8% (2005)
Unemployment rate	Definition - World rank and map 1% (2007 est.)
Population below poverty line	Definition NA%
Household income or consumption by percentage share	Definition lowest 10%: NA% highest 10%: NA%
Distribution of family income - Gini index	Definition - World rank and map 25 (2005)
Inflation rate (consumer prices)	Definition - World rank and map 5% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 27.5% of GDP (2007 est.)
Budget	Definition revenues: $9.635 billion expenditures: $8.597 billion (2007 est.)
Public debt	Definition - World rank and map 27.6% of GDP (2007 est.)
Agriculture - products	Definition potatoes, green vegetables; mutton, dairy products; fish
Industries	Definition fish processing; aluminum smelting, ferrosilicon production; geothermal power, tourism
Industrial production growth rate	Definition - World rank and map 9% (2007 est.)
Electricity - production	Definition - World rank and map 8.533 billion kWh (2005)
Electricity - consumption	Definition - World rank and map 8.152 billion kWh (2005)
Electricity - consumption per capita	Definition - World rank and map 26,783.5 kWh (2005)
Electricity - exports	Definition 0 kWh (2005)
Electricity - imports	Definition 0 kWh (2005)
Oil - production	Definition - World rank and map 0 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 18,460 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 60.7 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 0 bbl/day (2004)
Oil - imports	Definition - World rank and map 17,450 bbl/day (2004)
Oil - proved reserves	Definition - World rank and map 0 bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - consumption per capita	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - imports	Definition - World rank and map 0 cu m (2005)
Natural gas - proved reserves	Definition - World rank and map 0 cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$3.125 billion (2007 est.)
Exports	Definition - World rank and map $4.793 billion f.o.b. (2007 est.)
Exports - commodities	Definition fish and fish products 70%, aluminum, animal products, ferrosilicon, diatomite
Exports - partners	Definition Netherlands 21.3%, Germany 13.3%, UK 13.2%, Ireland 7.7%, US 7.2%, Spain 4.6%, Japan 4.3% (2006)
Imports	Definition - World rank and map $6.181 billion (2007 est.)
Imports - commodities	Definition machinery and equipment, petroleum products, foodstuffs, textiles
Imports - partners	Definition US 13.7%, Germany 12.2%, Sweden 10.2%, Denmark 7.5%, Netherlands 5.7%, UK 5.4%, China 5.1%, Norway 4.6% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $2.436 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $3.073 billion (2002)
Stock of direct foreign investment - at home	Definition $NA
Stock of direct foreign investment - abroad	Definition $NA
Market value of publicly traded shares	Definition $27.8 billion (2005)
Economic aid - donor	Definition $6.7 million (2004)
Currency (code)	Definition Icelandic krona (ISK)
Exchange rates	Definition Icelandic kronur per US dollar - 63.391 (2007), 70.195 (2006), 62.982 (2005), 70.192 (2004), 76.709 (2003)
Fiscal year	Definition calendar year

Iceland: Economy

Iceland:
Economy