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Economy
The economy is heavily dependent upon fishing. Despite efforts to diversify, seafood exports continue to account for nearly three-puarters of merchandise exports and approximately half of total foreign exchange earnings. Yet less than 10 per cent of the workforce is involved in fishing and fish processing. Unlike most other countries, the Icelandic fisheries are profitable and efficient. The travel industry makes up the second-largest export industry in Iceland. There are also important aluminium smelters in Iceland, utilising the ample and cheap hydroelectric energy. Since 1991, the economy has undergone an extensive programme of liberalisation, privatisation, stabilisation and deregulation. The standard of living is high, with Iceland usually occupying the 5th place, in terms of GDP per capita, in the OECD (after Luxembourg, Switzerland, the U.S. and Norway). The economy is service-oriented: two-thirds of the working population are employed in the service sector, both public and private. Iceland is a member of the European Free Trade Association (EFTA) and the European Economic Area (EEA).
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