2 due
to severe cutbacks in fishing quotas and falling world prices for the
country's main exports: fish and fish products, aluminum, and ferrosilicon.
Real GDP declined 3.3% in 1992 and is forecast to contract another 1.5% in
1993. The center-right government's economic goals 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 recession has led to a
wave of bankruptcies and mergers throughout the economy, as well as the
highest unemployment of the post-World War II period. The national
unemployment rate reached 5% in early 1993, with some parts of the country
experiencing unemployment in the 9-10% range. Inflation, previously a
serious problem, declined from double digit rates in the 1980s to only 3.7%
in 1992.
National product:
GDP - purchasing power equivalent - $4.5 billion (1992)
National product real growth rate:
-3.3% (1992)
National product per capita:
$17,400 (1992)
Inflation rate (consumer prices):
3.7% (1992 est.)
Unemployment rate:
5% (first quarter 1993)
Budget:
revenues $1.8 billion; expenditures $1.9 billion, including capital
expenditures of $191 million (1992)
Exports:
$1.5 billion (f.o.b., 1992)
commodities:
fish and fish products, animal products, aluminum, ferrosilicon, diatomite
partners:
EC 68% (UK 25%, Germany 12%), US 11%, Japan 8% (1992)
Imports:
$1.5 billion (c.i.f., 1992)
commodities:
machinery and transportation equipment, petroleum products, foodstuffs,
textiles
partners: EC 53% (Germany 14%, Denmark 10%, UK 9%), Norway 14%, US 9% (1992)
External debt:
$3.9 billion (1992 est.)
Industrial production:
growth rate 1.75% (1991 est.)
Electricity:
1,063,000 kW capacity; 5,165 million kWh produced, 19,940 kWh per capita
(1992)
Industries:
fish processing, aluminum smelting, ferro-silicon production, geothermal
power

*Iceland, Economy

Agriculture:
accounts for about 25% of GDP; fishing is most important economic activity,
contributing nearly 75% to export earnings; principal crops - potatoes,
turnips; livestock - cattle, sheep; self-sufficient in crops; fish catch of
about 1.4 million metric tons in 1989
Economic aid:
US commitments, including Ex-Im (FY70-81), $19.1 million
Currency:
1 Icelandic krona (IKr) = 100 aurar
Exchang