C, NATO, NC, NEA, NIB, OECD, OSCE, PCA, UN,
UNCTAD, UNESCO, UNU, UPU, WEU (associate), WHO, WIPO, WMO, WTrO

Diplomatic representation in US:
chief of mission: Ambassador Einar BENEDIKTSSON
chancery: Suite 1200, 1156 15th Street NW, Washington, DC 20005
telephone: [1] (202) 265-6653 through 6655
FAX: [1] (202) 265-6656
consulate(s) general: New York

US diplomatic representation:
chief of mission: Ambassador Parker W. BORG
embassy: Laufasvegur 21, Reykjavik
mailing address: US Embassy, PSC 1003, Box 40, FPO AE 09728-0340
telephone: [354] 5629100
FAX: [354] 5629139

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
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Economic overview: Iceland's Scandinavian-type economy is
basically capitalistic, but with an extensive welfare system, low
unemployment, and comparatively even distribution of income. The
economy is heavily dependent on the fishing industry, which provides
nearly 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, in
recession since 1988, began to recover in 1993, posting 0.4% growth,
but was still hampered by cutbacks in fish quotas as well as falling
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, however, remains
divided on the issue of EU membership, primarily because of
Icelanders' concern about losing control over their fishing
resources.

GDP: purchasing power parity - $5 billion (1995 est.)

GDP real growth rate: 3.2% (1995 est.)

GDP per capita: $18,800 (1995 est.)

GDP composition by sector:
agriculture: 9.6%
industry: 22.1%
services: 68.3% (1994)

Inflation rate (consumer prices): 2.5% (1995 est.)

Labor force: 127,900
by occupation: commerce, transportation, and services 60.0%,
manufacturing 12.5%, fishing and fish processing 11.8%, construction
10.8%, agriculture 4.0%, other 0.9% (199