_#_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)
_*Economy #_Overview: Iceland's prosperous Scandinavian-type economy is basically capitalistic, but with extensive welfare measures, low unemployment, and comparatively even distribution of income. The economy is heavily dependent on the fishing industry, which provides nearly 75% of export earnings. In the absence of other natural resources, Iceland's economy is vulnerable to changing world fish prices. As a result of climbing fish prices in 1990 and a noninflationary labor agreement, Iceland is pulling out of a recession, which began in mid-1988 with a sharp decline in fish prices and an imposition of quotas on fish catches to conserve stocks. Inflation was down sharply from 20% in 1989 to 8% in 1990.
_#_GDP: $4.2 billion, per capita $16,300; real growth rate 0% (1990)
_#_Inflation rate (consumer prices): 7.8% (1990)
_#_Unemployment rate: 1.8% (1990)
_#_Budget: revenues $1.58 billion; expenditures $1.66 billion, including capital expenditures of $NA million (1990)
_#_Exports: $1.6 billion (f.o.b., 1990);
commodities—fish and fish products, animal products, aluminum, diatomite;
partners—EC 67.7% (UK 25.3%, FRG 12.7%), US 9.9%, Japan 6%
_#_Imports: $1.7 billion (c.i.f., 1990);