| 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 geothermal power), the economy depends heavily on the fishing industry, which provides 70% of export earnings and employs 8% 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 estimates call for strong growth until 2007, slowly dropping until the end of the decade. |
| GDP - per capita | $34,600 (2005 est.) |
| GDP - real growth rate (%) | 5.9% (2005 est.) |
| Agriculture - products | potatoes, green vegetables, mutton, dairy products, fish |
| GDP - composition by sector (%) | agriculture: 11.8%, industry: 22.3%, services: 65.9% (2005 est.) |
| Industries | fish processing; aluminum smelting, ferrosilicon production, geothermal power; tourism |
| Population below poverty line (%) | NA |
| Debt - external | $3.073 billion (2002) |
| Labor force - by occupation (%) | agriculture, fishing and fish processing 10.3%, industry 18.3%, services 71.4% (2003) |
Environment, Land use / Resources, Economy, Population / Demographics, Infrastructure, Health -- CIA World Factbook, 2005
