Part 389

Legal system: civil law system based on Danish law; does not accept compulsory ICJ jurisdiction

Suffrage: 18 years of age; universal

Executive branch: chief of state: President Olafur Ragnar GRIMSSON (since 1 August 1996) head of government: Prime Minister David ODDSSON (since 30 April 1991) cabinet : Cabinet appointed by the president elections: president elected by popular vote for a four-year term; election last held 29 June 1996 (next to be held NA June 2000); prime minister appointed by the president election results : Olafur Ragnar GRIMSSON elected president; percent of vote - 41.4%

Legislative branch: unicameral Parliament or Althing (63 seats; members are elected by popular vote to serve four-year terms) elections : last held on 8 April 1995 (next to be held by April 1999) election results: percent of vote by party - Independence Party 37.1%, Progressive Party 23.3%, Social Democratic Party 11.4%, Socialists 14.3%, People's Movement 7.2%, Women's Party 4.9%; seats by party - Independence 25, Progressive 15, Social Democratic 7, Socialists 9, People's Movement 4, Women's Party 3

Judicial branch: Supreme Court or Haestirettur, justices are appointed for life by the president

Political parties and leaders: Independence Party (conservative) or IP [David ODDSSON]; Progressive Party (liberal) or PP [Halldor ASGRIMSSON]; Social Democratic Party or SDP [Sighvatur BJORGVINSSON]; People's Alliance (left socialist) or PA [Margret FRIMANNSDOTTIR]; Women's Party or WL [Kristin ASTGEIRSDOTTIR]; People's Movement (centrist); National Awakening (People's Revival Party) or PR [Johanna SIGURDARDOTTIR]

International organization participation: Australia Group, BIS, CCC, CE, EBRD, ECE, EFTA, FAO, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, Inmarsat, Intelsat, Interpol, IOC, ISO, ITU, MTCR, NACC, NATO, NC, NEA, NIB, OECD, OSCE, PCA, UN, UNCTAD, UNESCO, UNU, UPU, WEU (associate), WHO, WIPO, WMO, WTrO

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

Diplomatic representation from the US: chief of mission: Ambassador Day Olin MOUNT (22 August 1996) embassy: Laufasvegur 21, Reykjavik mailing address : US Embassy, PSC 1003, Box 40, FPO AE 09728-0340 telephone: 5629100 FAX: 5629118

Flag description: 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

Economy - overview: Iceland's Scandinavian-type economy is basically capitalistic, yet with an extensive welfare system, low unemployment, and remarkably even distribution of income. The economy depends heavily on the fishing industry, which provides 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 remains sensitive to declining fish stocks as well as to drops in 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 remains opposed to EU membership, primarily because of Icelanders' concern about losing control over their fishing resources.

GDP: purchasing power parity - $5.3 billion (1996 est.)

GDP - real growth rate: 3.3% (1996 est.)

GDP - per capita: purchasing power parity - $19,800 (1996 est.)

GDP - composition by sector: agriculture: 9.6% industry: 22.1% services: 68.3% (1991)

Inflation rate - consumer price index: 2.5% (1996 est.)

Labor force: total: 145,000 (1994) 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% (1990)

Unemployment rate: 5% (1996)

Budget: revenues: $1.9 billion expenditures: $2.1 billion, including capital expenditures of $297 million (1994 est.)

Industries: fish processing; aluminum smelting, ferrosilicon production, geothermal power; tourism

Industrial production growth rate: 1.75% (1991 est.)

Electricity - capacity: 1.1 million kW (1994)

Electricity - production: 5 billion kWh (1995)

Electricity - consumption per capita: 17,181 kWh (1995 est.)

Agriculture - products: potatoes, turnips; cattle, sheep; fish catch of about 1.1 million metric tons in 1992

Exports: total value: $1.67 billion (f.o.b., 1995) commodities: fish and fish products 75%, animal products, aluminum, ferrosilicon, diatomite partners: UK 19%, Germany 14%, US 12%, Japan 11%, Denmark 8%, France 7% (1995)

Imports: total value: $1.62 billion (f.o.b., 1995) commodities: machinery and transportation equipment, petroleum products, foodstuffs, textiles partners: Germany 11%, Norway 10%, UK 10%, Denmark 9%, US 8%, Sweden 7% (1995)