Diplomatic representation from the US:
chief of mission: Ambassador James I. GADSDEN
embassy: Laufasvegur 21, 101 Reykjavik
mailing address: US Embassy, PSC 1003, Box 40, FPO AE 09728-0340
telephone: [354] 5629100
FAX: [354] 5629118
Flag description:
blue with a red cross outlined in white extending 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 Iceland
Economy - overview:
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 hydrothermal and geothermal power), the economy depends
heavily on the fishing industry, which provides 70% of export
earnings and employs 12% 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. Government policies 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 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 had been remarkably steady in
1996-2001 at 3%-5%, but could not be sustained in 2002 in an
environment of global recession. Growth resumed in 2003, and
inflation dropped back from 5% to 2%.
GDP:
purchasing power parity - $8.444 billion (2002 est.)
GDP - real growth rate:
-0.6% (2002 est.)
GDP - per capita:
purchasing power parity - $30,200 (2002 est.)
GDP - composition by sector:
agriculture: 14% (includes fishing 12%)
industry: 21%
services: 65% (2001 est.)
Population below poverty line:
NA%
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%