, UN, UNCTAD, UNESCO, UNHCR, UNMIBH, UNMIK, 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

telephone: [1] (202) 265-6653

FAX: [1] (202) 265-6656

consulate(s) general: New York

Diplomatic representation from the US: chief of mission: Ambassador
Barbara J. GRIFFITHS

embassy: Laufasvegur 21, 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 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)

Iceland 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. 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 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 has been remarkably steady
over the past five years at 4%-5%.

GDP: purchasing power parity - $6.85 billion (2000 est.)

GDP - real growth rate: 4.3% (2000 est.)

GDP - per capita: purchasing power parity - $24,800 (2000 est.)

GDP - composition by sector: agriculture: 15% (includes fishing 13%)

industry: 21%

services: 64% (199