Political parties and leaders: Independence Party (conservative)
International organization participation: Australia Group, BIS,
CBSS, CCC, CE, EAPC, EBRD, ECE, EFTA, FAO, IAEA, IBRD, ICAO, ICC,
ICFTU, ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, Inmarsat,
Intelsat, Interpol, IOC, ISO, ITU, MTCR, NATO, NC, NEA, NIB, OECD,
OPCW, OSCE, PCA, UN, UNCTAD, UNESCO, UNMIBH, UNU, UPU, WEU
(associate), WHO, WIPO, WMO, WTrO
Diplomatic representation in the US:
chief of mission: Ambassador Jon-Baldvin HANNIBALSSON
chancery: Suite 1200, 1156 15th Street NW, Washington, DC 20005
consulate(s) general: New York
Diplomatic representation from the US:
chief of mission: Ambassador Day Olin MOUNT
embassy: Laufasvegur 21, Reykjavik
mailing address: US Embassy, PSC 1003, Box 40, FPO AE 09728-0340
Flag description: 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
Economy—overview: Iceland's Scandinavian-type economy is basically capitalistic, yet with an extensive welfare system, low unemployment, and remarkably even distribution of income. The economy depends heavily on the fishing industry, which provides 75% of export earnings and employs 12% of the work force. In the absence of other natural resources—except energy—Iceland's economy is vulnerable to changing world fish prices. The economy remains sensitive to declining fish stocks as well as to drops in world prices for its main exports: fish and fish products, aluminum, and ferrosilicon. The center-right government plans to continue its policies of 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 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. Growth is likely to slow in 1999, to a still respectable 4.6%.
GDP: purchasing power parity—$6.06 billion (1998 est.)
GDP—real growth rate: 5.1% (1998 est.)
GDP—per capita: purchasing power parity?$22,400 (1998 est.)