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Economy - overview:
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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.
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GDP (purchasing power parity):
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$12.19 billion (2007 est.)
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GDP (official exchange rate):
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$20 billion (2007 est.)
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GDP - real growth rate:
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3.8% (2007 est.)
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GDP - per capita (PPP):
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$40,400 (2007 est.)
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GDP - composition by sector:
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agriculture: 5.2%
industry: 25.7%
services: 69.1% (2007 est.)
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Labor force:
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181,000 (2007 est.)
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Labor force - by occupation:
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agriculture: 5.1%
industry: 23%
services: 71.8% (2005)
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Unemployment rate:
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1% (2007 est.)
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Household income or consumption by percentage share:
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lowest 10%: NA%
highest 10%: NA%
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Distribution of family income - Gini index:
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25 (2005)
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Investment (gross fixed):
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27.5% of GDP (2007 est.)
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Budget:
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revenues: $9.64 billion
expenditures: $8.602 billion (2007 est.)
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Public debt:
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27.6% of GDP (2007 est.)
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Inflation rate (consumer prices):
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5.1% (2007 est.)
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Central bank discount rate:
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15.25% (31 December 2007)
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Commercial bank prime lending rate:
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19.29% (31 December 2007)
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Stock of money:
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$6.64 billion (31 December 2007)
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Stock of quasi money:
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$15.05 billion (31 December 2006)
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Stock of domestic credit:
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$49.67 billion (31 December 2006)
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Agriculture - products:
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potatoes, green vegetables; mutton, dairy products; fish
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Industries:
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fish processing; aluminum smelting, ferrosilicon production; geothermal power, tourism
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Industrial production growth rate:
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9% (2007 est.)
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Electricity - production:
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11.71 billion kWh (2007 est.)
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Electricity - consumption:
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9.312 billion kWh (2006 est.)
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Electricity - exports:
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0 kWh (2007 est.)
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Electricity - imports:
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0 kWh (2007 est.)
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Oil - production:
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0 bbl/day (2007 est.)
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Oil - consumption:
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21,120 bbl/day (2007 est.)
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Oil - exports:
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860.8 bbl/day (2005)
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Oil - imports:
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17,450 bbl/day (2005)
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Oil - proved reserves:
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0 bbl (1 January 2006 est.)
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Natural gas - production:
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0 cu m (2007 est.)
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Natural gas - consumption:
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0 cu m (2007 est.)
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Natural gas - exports:
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0 cu m (2007 est.)
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Natural gas - imports:
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0 cu m (2007 est.)
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Natural gas - proved reserves:
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0 cu m (1 January 2006 est.)
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Current account balance:
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-$3.189 billion (2007 est.)
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Exports:
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$4.793 billion f.o.b. (2007 est.)
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Exports - commodities:
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fish and fish products 70%, aluminum, animal products, ferrosilicon, diatomite
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Exports - partners:
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Netherlands 21.3%, Germany 13.3%, UK 13.2%, Ireland 7.7%, US 7.3%, Spain 4.6%, Japan 4.3% (2007)
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Imports:
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$6.181 billion (2007 est.)
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Imports - commodities:
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machinery and equipment, petroleum products, foodstuffs, textiles
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Imports - partners:
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US 13.7%, Germany 12.2%, Sweden 10.2%, Denmark 7.5%, Netherlands 5.7%, UK 5.4%, China 5.1%, Norway 4.6% (2007)
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Reserves of foreign exchange and gold:
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$2.436 billion (31 December 2007 est.)
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Debt - external:
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$3.073 billion (2002)
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Stock of direct foreign investment - at home:
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$NA
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Stock of direct foreign investment - abroad:
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$NA
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Market value of publicly traded shares:
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$27.8 billion (2005)
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Currency (code):
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Icelandic krona (ISK)
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Exchange rates:
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Icelandic kronur (ISK) per US dollar - 63.391 (2007), 70.195 (2006), 62.982 (2005), 70.192 (2004), 76.709 (2003)
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