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Country facts
| Capital city: |
Reykjavík |
| Surface area: |
103,000 sq km |
| Population: |
313,000 |
| Official language(s): |
Icelandic |
| Head of State: |
President HE Dr Ólafur Ragnar Grímsson |
| Head of Government: |
Prime Minister Mr Geir H Haarde |
| Australian exports to Iceland: |
A$5 million |
| Australian imports from Iceland: |
A$27 million |
| Iceland's principal export destinations: |
Netherlands, Germany, UK |
| Iceland's principal import sources: |
USA, Germany, Sweden
| (Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Economic climate
Similar to other Scandinavian countries suffering from the weak world economy, Iceland’s recent economic performance has seen a disappointing fish catch and pressure on the current account deficit.
The economy depends heavily on the fishing industry that generates 70 per cent of its export earnings and employees 12 per cent of the population.
Key economic indicators and statistics for 2008:
- GDP – US$19 billion
- GDP per capita – US$60,122
- Real GDP growth – 0.3 per cent
- Inflation – 14.9 per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Political climate
The Republic of Iceland is a constitutional republic with 23 counties and 14 independent towns. Iceland gained independence from Denmark in 1944.
The cabinet is appointed by the Prime Minister (who is appointed by the President) and approved by parliament. There are 63 seats in Parliament (or Althing) where members are chosen by popular vote and serve four-year terms. |
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Trade relations and statistics
Iceland's membership in organisations such as the Artic Council, Council of Baltic Sea States and the Barent Euro-Artick Council sees close collaboration with all its Nordic neighbours. However, Iceland’s most extensive economic cooperation agreement concerns the European Economic Area, which forms the basis for a common market for goods, services, capital and labour between the member countries of the European Union (EU) and three member countries of the European Free Trade Association. Iceland is not a member of the EU. In addition, Iceland also has strong ties with the USA founded on the Defence Agreement 1951.
Major Australian exports to Iceland (2007-08):
- Alcoholic beverages – A$2 million
- Aluminium – A$1 million
Major Australian exports to Iceland (2007-08):
- Plastic plate, sheets and film – A$4 million
- Food processing machinery and parts – A$3 million
- Animal oils and fats – A$2 million
- Articles for goods conveyance/packing – A$2 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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