2 Connecticut Avenue NW, Washington DC 20008; telephone (202)
265-6653 through 6655; there is an Icelandic Consulate General in New
York;

US--Ambassador Charles E. COBB, Jr.; Embassy at Laufasvegur 21,
Box 40, Reykjavik (mailing address is FPO New York 09571-0001); telephone
[354] (1) 29100

_#_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
_#_Overview: Iceland's prosperous Scandinavian-type economy is
basically capitalistic, but with extensive welfare measures, low
unemployment, and comparatively even distribution of income. The economy
is heavily dependent on the fishing industry, which provides nearly 75%
of export earnings. In the absence of other natural resources, Iceland's
economy is vulnerable to changing world fish prices. As a result of
climbing fish prices in 1990 and a noninflationary labor agreement,
Iceland is pulling out of a recession, which began in mid-1988 with a
sharp decline in fish prices and an imposition of quotas on fish catches
to conserve stocks. Inflation was down sharply from 20% in 1989
to 8% in 1990.

_#_GDP: $4.2 billion, per capita $16,300; real growth rate 0%
(1990)

_#_Inflation rate (consumer prices): 7.8% (1990)

_#_Unemployment rate: 1.8% (1990)

_#_Budget: revenues $1.58 billion; expenditures $1.66 billion,
including capital expenditures of $NA million (1990)

_#_Exports: $1.6 billion (f.o.b., 1990);

commodities--fish and fish products, animal products, aluminum,
diatomite;

partners--EC 67.7% (UK 25.3%, FRG 12.7%), US 9.9%,
Japan 6%

_#_Imports: $1.7 billion (c.i.f., 1990);

commodities--machinery and transportation equipment, petroleum,
foodstuffs, textiles;

partners--EC 49.8% (FRG 12.4%, Denmark 8.6%, UK 8.1%), US 14.4%,
Japan 5.6%

_#_External debt: $3 billion (1990)

_#_Industrial production: growth rate - 0.8% (1988 est.); accounts
for 22% of GDP

_#_Electricity: 1,063,000 kW capacity; 5,165 million kWh produced,
20,780 kWh per capita (1989)

_#_Industries: fish processing, aluminum smelting, ferro-silicon
production, hydropower

_#_Agriculture: accounts for about 25% of GDP (including fishing);
fishing is most important economic activity, contributing nearly 75%
to export earnings; principal crops--potatoes and turnips;
livestock--cattle, sheep; self-sufficient in cro