Capital City: Reykjavik
	It is %T:%M %A in Reykjavik

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Economic trends

Iceland experienced a decade of strong economic growth during 1990s because of economic reforms and deregulation. However, as with many advanced countries, Iceland’s economy experienced a mild recession. Fmi forecasts a zero growth rate for 2008. Inflation is estimated to have reached 4.8% in 2007. The unemployment rate is under control at around 3%.

Main branches of industry

The agriculture sector employs 4% of the Icelandic active population and is mainly dominated by breeding. Fishing is the major economic activity. It accounts for 13% of the GDP and employs 10% of the active population. Iceland has abundant hydroelectric and geothermal power sources which contribute 29% to country’s GDP and supplies to more than 90% of the country’s population. The industrial sector generates 29% of the GDP. Manufacturing industry works on a small scale. In the mid-term, sectors having strongest development potential are: energy and renewable energy, biomedical research, tourism, and pharmaceutical.

International trade

Iceland has always been open to international trade. The share of foreign trade in country’s GDP is more than 80%. Almost half of the exports are fishing products. Its top three export partners are: the United Kingdom, Germany and the Netherlands. Besides fishing products, Iceland also exports aluminium and meat. The top three import partners are: Germany, the U.S.A., and Sweden. Except fishing and some agricultural products, Iceland imports everything especially vehicles, machinery, mineral fuels & oils, and computer products.