• GDP: ISK806,439 million (2003).
• Main exports: Fish, fish products, aluminium, animal products, ferrosilicon and diatomite.
• Main imports: Machinery and equipment, petroleum products, foodstuffs and textiles.
• Main trade partners: UK, Germany, Denmark, France, Sweden, USA, Japan and Norway.

Icelanders enjoy a per capita income that is amongst the highest in the world at US$38,620. Iceland is short of indigenous raw materials and thus relies heavily on foreign trade to keep its relatively successful economy ticking over. Exports of goods and services account for more than one-third of GNP. The largest proportion of these derives from fisheries and related products such as fishmeal and oil. The economy is thus particularly susceptible to fluctuating world prices in this commodity and maintains a broad fisheries exclusion zone (320km/200 miles) to protect its earnings. As several European governments (including the British) have discovered to their cost, the Icelanders are fiercely determined and quite capable of defending their perceived territorial rights. Other sources of revenue come from the sale of minerals such as aluminium, ferrosilicon, cement and nitrates used in fertilisers, although these have lately been affected by low demand. Light industry produces knitwear, blankets, textiles and paint. There is a burgeoning advanced technology sector involved in software and biotechnology, and an embryonic financial services industry. After a period of high inflation and recession in the 1980s and 1990s, Iceland entered a positive economic period; economic growth in 2003 was at 4 per cent and unemployment at 4 per cent in the second quarter of 2004. Tourism is now a major earner, with recent estimates showing that whale watching alone contributes £12 million to the economy per year.
Accession to the European Economic Area (an amalgam of the EU and the European Free Trade Association; Iceland belongs to the latter) effected a wholesale liberalisation of trade among the member states and caused some disruption to the Icelandic economy. This highlighted the fact that Iceland's economy is too dependent on its fishing industry and needs to diversify in areas that will allow it to compete in international markets.

Businesspeople are expected to dress smartly. Local businesspeople are conservative but very friendly and most speak English. Previous appointments are not generally necessary, but visits between May and September should be planned in advance as many local businesspeople travel abroad at this time. The telephone directory is listed by Christian name. Office hours: Mon-Fri 0800-1600 (summer) and 0900-1700 (winter). Most offices are closed Saturday and Sunday.

There are several large hotels in Reykjavík equipped for conferences and business meetings, while smaller conferences may be held at venues outside the capital.

Iceland Chamber of Commerce
House of Commerce, 7th floor, Kringlan 7, 103 Reykjavík, Iceland
Tel: 510 7100.
Website: www.chamber.is

Iceland Convention & Incentive Bureau
Laekjargata 3, 101 Reykjavík, Iceland
Tel: 562 6070.
Website: www.icelandconvention.com