No. E 44 RF:TU~"'l T(j RESTRICTED r~~", JI I f c'~ <;,~,~ ~ - .~, .~ ~ 66890 ------------------- This report is restricted to use within the Bank INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ICELAND MANUAL June 1, 1949 Economic Department Prepared by G. D. Tibbits 25~ -. 4' .:: 3' ., I)f')O ?1 ' ~'JI"C _ _ L~ -T-_ 19 " _I 18~ 17' 16 c 1C}V 4 r, I I -I -- - I I -! I --, _A:~r .!.':! f! ___ -+ ~ -1- __ J.,;!.:~_m,~- l- i + - I I " l t..onqon I "',,- ?; ~,'\......"+- ,,\\0' ~ iqro "'IP.5 , " I \ _ _ _J-- «- \ I s.o .. ~", ~ !M",A'......-~ it" Vege1olion or, Highland \OW'.llontj 0 • fow ... Vill og , II C IE ILA\. N IID BY G "'oynlcin;" 1" Chureh SAf\-~Lf" LC';'3CRTSSO~ ~'9hlond Glacier • Notable 'or"., fns;i :, *."" ""~, >Folj~ • f~ mt"e~ f) River '" vmOt"( helQt'lt I r. ,0 ,,' ~~_..J '0 _ '" Br,d ~~~.~-~). ... Ruvd "'~:lll,.)'''' je"~ . ... ~ -~-~ "----' ~"I<"t 10 ~o '" -0' ICELAND MANUAL TABLE OF CONTENTS 1. Summary 2. Geography 30 Popula.tion 4. C~vernment and Foreign Relations 5. National Income 6. Agriculture 7. Fisheries, Fishing Fleet and Merchant Shipping 80 Industry 9. Foreign Trade 10. Balance of Payments 11. Prices, Banking and Public Finance TABLES I. Fishing Fleet II. Foreign Trade III.. Exports of Fish, Salted and Fresh, Total IV. Exports of Fish, Salted and Fresh, by Category V0 Exports of Principal Fish Products VI. Imports of Selected Items VII. Imports and Exports, by Countries VIII. Balance of Payments IX. Cost of Living in Reykjavik x. Position of the Banks ICELAND MANUAL Summary Fishing and the export of fish and fish products, which fluctuate widely and unpredictably from year to year with variations in volume of fish caught, are the mainstay of the Iceland economy_ other foreign income is chiefly from small export of wool, mutton and sheepskins, and the servicing of foreign ships and airplanes. Domestic agriculture provides only part of food requirements, though there are small surpluses for export. Industry consists mainly of fish processing and electric power production. With inadequate domestic food supplies and no basic raw materials, Iceland is more heavily dependent on imports than most other countries. New installations and facilities of a permanently useful nature were constructed during the war, while other equipment, mainly the fishing fleet, became outworn. By use of wartime accumulated foreign reserves, the fishing fleet has been both rebuilt and expanded since 1945, so that Iceland's capital and earning power are now, on the whole, greater than prewar. Current plans call for further capital equipment improvements, including further expansion of the fishing and commercial fleets, electric power development, and construc- tion of fish processing and other plants. Since wartime accumulated foreign reserves now have been almost fully utilized, this will require some foreign financing. Inflation remains a serious problem. The governmentts accounts in 1948, as also in 1947, were not in balance. Banknote circulation, which had dropped in 1947, increased again in 1948, and there was some further increase in the cost of living. Of prinCipal future importance in reaching a balance of current external payments, particularly of dollar payments and receipts:; are improving the competitive position of exports, and decreasing dependence on imports by developing agriculture and domestic industry. The high level of prices and wages, and the increasing difficulty of marketing exports, indicate an overvaluation of the kronur relative to the dollar and most other currencies. 1. GEOGRAPHY Iceland, with an area of 39,758 square miles (103,000 square kilometers), is over twice the size of Denmark and less than a third the size of Norway. Located in the North Atlantic just below the Arctic Circle, it is midway between the southern tip of Greenland and central Norway. It is directly on principal north Atlantic sea and air routes, and at the center of the north Atlantic fishing regions. Harbors, which are only fair, are located mainly on the west, north and east coasts; there are few in the south. The interior is mainly barren and mountainous, with fast-flowing rivers, originating from glaciers, which cover about a third of the countr.y. There are volcanoes, some active, in the center of the island, and hot springs, of var.ying temperatures up to the boiling point, scattered throughout the countr.y. Lowlands and cultivable land (which is ver.y highly valued), constituting only about one-seventh of the area, are located at the various river valleys around the island, but largely in the southwest. Iceland was once covered with forests; with the exception of a few recently planted small-scale forest areas, there are now, however, no trees in Iceland. Much of Iceland1s soil was also lost with the trees. Except for some calcareous spar, sulphur and lignite, there are no known mineral resources. Iceland's climate is tempered by the ocean and the Gulf Stream. The weather is variable with a temperature ranging between 30 and 60 degrees fahrenheit. The annual mean temperature at Reykjavik is about 39° fahrenheit (3.9 0 centigrade), and the mean precipitation about 34 inches (870 mm.) 2. POPULATION The people of Iceland in the past have survived on their rather barren island for a thousand years in spite of many disasters, including plagues and volcano eruptions. They are of Nordic and Irish descent, though culturally Scandinavian. Since 1900 the population has doubled and is now about 134,000. The increase in the last 10 years has been about 12%. There are only 3.3 persons per square mile, compared with 25 in Norway and 250 in Denmark. Somewhat over half of the population (54.8% in 1945) live in towns, 1108% in villages of over 300 inhabitants and 33.4% in rural districts. The war accelerated the shift from the country to towns, particularly to Reykjavik. The population o£ Reykjavik, the capital, which is the only large town and located on the southwest coast, is 51,000 0 Nine other smaller towns, the largest of which is Akureyri (6,180) on the north coast, have a combined population of 25,000. Somewhat less than a third of the actively employed population (31.6% in 1940) is engaged in agriculture, compared with almost two-thirds in 1900, and about double those engaged in fishing (16.3%). The proportion engaged in industry (21.9%) is increasing. Commerce, communications and public service account for most of the remaining 300 2%. The standard of education is high and illiteracy is unknown. 3. GOVERNMENT AND FOREIGN RELATIONS Iceland severed its ties with the Danish Crown and became an independent republic in 1944. During the war, in July 1941, American troops, on the invitation of the Iceland Government, replaced the British troops already there; they have now all left the country and only certain American civilians remain. The Althing, -2- the Iceland parliament, consists of 52 members, one-third in the Upper House, and the remainder in the Lower House. At the last elections, in June 1946, 20 members of the Independence (Conservative) party were elected, 13 Progressives (the Farmers party), 10 Communists and 9 Labor party members. From the previous elections in October 1942, the Labor Party gained 2 members at the expense of the Progressives; there was no change in Communist membership. In October, 1946, the coalition government headed by Prime Minister Olafur Thors fell over the question of the agreement with the United States on the American built Keflavik airport. The agreement, which was subsequently approved, provided for continued American use of the airport until-the end of the occupation in Germany, with the provisions,_however, that it could be revised after five years or abrogated after 5i years.lI It was disapproved of by the Communists, who staged a one-day general strike. The new coalition government of Stefan J. Stefansson, including no Communists, succeeded that of Thors. Iceland is a member of OEEe and has joined the other western powers in the Atlantic Pact. This latter move meant an abrupt change in her former policy of unarmed neutrality. Iceland, though occupied by the Allied Powers during the war, never declared war on Germanyo 4. NATIONAL INCOrffi During the war and its immediate aftermath the national income of Iceland was much enlarged because of the great foreign demand, at high prices, for fish, and because of the British and American occupation. More recently, without occupation expenditures and with poor 1947-48 fishing seasons, income has remained high mainly through use of foreign assets accumulated during the war. These assets have now, however, been almost fully utilized. Before the war, Iceland1s per capita income was less than that of the other Scandinavian countries. In 1939, it was approximately $216 per person, compared to about $300 in both Norway and Denmark o Per capita money income, in dollars at the current rate of exchange, in 1947 - 48, amounted to about $1000 per person, compared to $465 in Norway and $750 in Denmark. Wages have increased more than the cost-of-living, as shown in a later table, and real income has increased over 50%. The proporti~ of total national income invested (in 1945-48, respectively, 24, 39, 36 and 29%) has been greater than in either Denmark or Norway. Owing to this, and to a 300f0 increase in cost-of-living compared to 50% in Denmark and Norway, the standard of living remains less than in these countries, despite the larger dollar per capita income. The larger dollar per capita income is partly accounted for by the greater relative gross investment but, as the increase in cost-of-living expressed in dollars would indicate, the present kronur rate of exchange is probably out of line with both dollar and other currencies. 11 Treaties and Other International Acts Series, 1566, State Department Y ERP, Iceland, EeA February 1949. Page 7. -3- 5. AGRICULTURE Iceland I S farm land, grass.land and cul tivated areas, amounts to about 7,000 square miles (18,000 square kilometers) which is less than 1/6 of the countryfs total area. The cultj,vated area, amounting only to about 175 square miles (450 square kilometers),1! is scarce and valuable, and carefully tended. There are some 6000 farms, about 1000 government owned, varying widely in size and quality of soil. About half of the farmers are tenants, of whom 40% farm government land. Sheep and dairying are the chief types of farming, and prin- cipal crops are hay and potatoes. Efforts are being made to increase the acreage of cultivable land, and by 1952 a 50% increase is planned. The number of cattle in Iceland is approximately the same as prewar, about 38,000. The number of sheep, partly because of a malady which has existed for some years, is now somewhat below prewar, about 500,000. The Icelandic pony, despite more modern methods, continues to be used for farm work and transportation, and also, to some extent, for meat o Meat production in 1948 amounted to 10,000 tons, of which 1,000 tons was exported. Production of sheepskins and hides amounted to 1700 tons, of which 1400 were exported. By 1952 exports of meat are expected to amount to 2,500 tons annually and output of hides and skins to 2000 tons. Except for butter, Iceland is self-sufficient with respect to dai~- products. With an increase in butter and cream output from 800 tons in 1948 to 1500 in 1952, Iceland should be self- sufficient also with respect to butter. With an increase in cultivable land by 1952, greater output of grains, potatoes and vegetables is expected. The following figures show 1937, 1948 and planned 1952 output of principal agricultural products. (1,000 Tons) Year Potatoes l'dlk Meat Wool 1937 12 ]J 66 8 0.82 194$ Y 10 62 10 0 0 75 1952 Y 17 90 11.5 0 0 85 Increase from 1948 7CYfo 46% 15% 13% ]J 1939 Y Estimates Iceland's agriculture has been to some extent mechanized which has enabled increased output despite migration from the country to townso Further increases in output will necessitate importation of more tractors and agricultural machineryo The present government plan·calls for $8 million worth of such imports in the four fiscal years 1949/50 through 1952/53, $1.7 million from the United States and $6.3 million from ERP participating countries. 11 110,0(';0 acres or 45,000 hectares. -4- 6. FISHERIES, THE FISHING FLEET. AND }1ERCHANT SHIPPING The annual Iceland fish catch is less than half that of Norway but per person of population the catch is greater, about 3 tons compared with 1/3 ton. About 95% of the catch is exported, either fresh or processed, and such exports constitute 9~; of total exports. The catches, particularly of herring, vary considerably from year to year but on the average, owing to use of better equipment, have increased faster than the number of people occupied. The season for cod and other whitefish, although some are caught all year round, is from February to June or July, and that for herring, from mid-June to mid- September. The quantities of cod and other whitefish brought ashore increased regularly from an average of 49,390 tons annually in 1901-05 to 256,534 tons in 1931-35. In 1936-40 the annual average declined to 154,452 tons owing to poor fishing and to loss of markets in Spain and Italy. Due to the latter, Iceland in the latter part of the 1930 l s was poor and hard hit. In 1941-45, wartime demand increased the catch to 247,617 tons annually. The last three years, 1946-48, have been poor, and catches averaged 226,000 tons annually. The amount of herring caught varies much more from year to year than that of cod, and it has only been within the last ten years or so that it has approached, in volume, the catches of cod and other whitefish. The 1947 herring catch amounted to 200,000 tons, compared with 230,000 tons of other fish caught. Annual catches and their disposition from 1944 are shown below. A relatively greater increase in freezing and canning is anticipated than in output of salted and fresh fisho (1000 tons) Herring 1/ Total Catch Salted & Fresh Frozen & Canu~d to Factories Home ConsumptiQu 1944 461.3 184 0 0 5504 221.8 4 00 1945 28301 163.8 60 01 59.2 2.3 1946 32603 141.3 7905 105.5 2.5 1947 431.2 152.3 78 02 200.6 205 1948 409.2 196.7 79 0 8 12909 2.9 1952/3 as Y % of 1947/8 125% 155% 119% JI 11 For processing to meal and oil. Y Iceland Long Term Program OEEC. J/ Harine oils Iceland's fishing fleet, as shown in Table I, doubled in tonnage after the first war and again since 1945. Fishing tonnage is now twice that of the merchant marine. At the end of 1948 the fleet consisted of some 48 steam trawlers and about 400 other fishing vessels with an aggregate tonnage of 54,000 gross tons. In 1945, the Government ordered in Great Britain 32 modern ocean- going steam trawlers, 175 to 180 feet long, and of these 27 have been delivered. It expects to order 10 additional trawlers to be completed in 1959-51. Aside from trawlers, a great nwaber of smaller boats, between 50-70 feet, have been, and are -5- being, built, mostly in Sweden. Some of the new tonnage is replacing old tonnage now in use. Tonnage of merchant shipping is now about 25,000 gross tons and con- sists of 12 vessels. With a further expansion to 42,000 tons by 1952, Iceland expects to carry most of its own, as well as some foreign trade. A Fish Industries Board has been functioning since 1934 and includes representatives from the different economic interests in Iceland, including the trade unions, the trawler owners, the banks, the co-operatives, and the fisheries association. The activities of the board cover a wide field, including the finding of markets, the stimulation of sales, etc. The Boand is under the Ministry of Industry and Communication and only those licensed by the minister may export. A similar Board was set up at the same time for the herring industry. 7. INDUSTRY Owing to lack of raw materials, Iceland has developed industrially only to a limited extent. Industry in Iceland consists mainly of preparation of fish and output of fish products. Electricity is produced from water and steam power. Ships, mainly small-sized, are built and repaired. Some goods for domestic con- sumption are produced. The best indication of Iceland1s industrial activity is the export of fish and fish products, shown in tables IV and Vo During the last decade quick frozen fish filets have taken the place of salted cod as Icelandts chief export item. There are at present 72 refrigerating plants with a total capacity of 700 metric tons of filets per day, an annual output of between 25 - 30 thousand metric tons. Two new plants are being constructed, 5 others are planned, and 4 old plants are being completely re-equipped, so that by 1952 total capacity is expected to amount to about 830 metric tons of filets per day, an increase from current capacity of about 20%. The capacity of herring oil and meal plants is currently being expanded, with ECA assistance, by over 30%, and output, practically all exported to the United States and Europe, is expected, with reasonably good herring catches, to reach annually about 40-50,000 tons of oil and 45-55,000 tons of meal. To increase the export value of the herring oil, a refining and hardening plant is planned~th a capacity of 50 tons a day. It is planned, also, to expand annual production of fishmeal from waste of fish processed for food, now 5-6,000 tons annually, since such material is now being wasted. Steam trawlers and smaller fishing vessels can be repaired and serviced in a recently completed shipyard at Reykjavik and other small ones throughout the country. To handle merchant marine ships of from 1000 to 8000 tons two drydocks in Reykjavik are to be built within the next four yearso Capacity of electric power plants, about 60% hydro-electric, is approxi- mately 50,000 kw. Hydro resources are estimated at 205 million kw. In 1947 generated energy was 140 :n.illion kwh, about 1000 kwh per person. About SO% was used for domestic purposes, and 20% in industry, mainly ,for fish processing. i -6- The electric utilities, of which there are 50, and the maLn power plants are practically all owned by the municipalities. In spite of expansion over the last 10 years all existing plants are overloaded, and a d:mbling of capacity to 107,500 kw is planned during the next four years. The expansion is of ~ primary importance for industrial development. Such projects as a fertilizer plant, a refining and fish oil hardening plant and a cement plant, which are part of the government long-term program, are entirely dependent on increased electricity production. Aluminum production is also a possibility although no development in that field has yet been planned o The unique heating system of Reykjavik, which utilizes hot spring water, now heats about 75% of the cityfs buildings and is to be expanded to heat all buildings. Expansion of the heating system will substantially reduce coal L~ports, amounting annually for all purposes to about 150,000 tons. Present government plans call for construction within the next three years of a nitrogen fertilizer plant with a capacity of 7,500 tons per year o Domestic requirements are estimated at 3,500 tons annually by 1952, which would leave 4,000 tons for export. Domestic use of fertilizer in sufficient quantity is expected to reduce imports of coarse grain. Houses in Iceland, owing to lack of wood, are very largely of concrete. It is planned to construct by 1952 a cement plant with a capacity, sufficient for domestic reqUirements, of 75,000 metric tons. In 1946 aI.;d 1947, 73,000 and 64,000 metric tons, respectively, vlere imported. The building of a flour mill with an annual cape.city of 12,000 tons which Can be easily increased to 20,000 tons, is planned in 19~0-52. 8. FOREIGN TRADE Before the war, in 1938-39, exports from Icelanc;, which were somewhat larger than imports, represented approximately half of the national income, and averaged annually about $120 per person. Since the war, in 1947-48, exports have averaged annually about $400 per person and imports, abo1.:lt $530 per persono In comparison, Norwegian exports averaged annually, in 1947-.48, about $130 per person and those of Ne\.J' Zealand, another country greatly dependelnt on foreign trade, about $270 per person. Iceland's imports are ordinarily greatest in thE~ spring, and exports greatest in the fall. The annual trade balance, which bElfore the war, as shown in Table II, waS favorable by a small margin, has since 1~he war been unfavorable, reaching the large amount of 229 million kroner (4% of 1.otal imports) in 1947, but declining, however, to a smaller amount, in 1948 0 The war increased exports and imports conSiderably, and to a greater extent on a vl~ue than on a quantity basis. As shown in Table III, the quantity of fish, saH,ed and fresh, exported (representing quantitatively the bulk of total exports) doubled in 1940-41 from the average of 1935-39, reached a maximum during the war in 1944, declined some- what to a low in 1946, and then recovered in 1948 to an ~l.Illount below the wartime peak but well over twice the prewar average. Prices, about 8 cents per kilo in 19.35-39, increased each year, to an average of 22 cents :~n 1947, and then declined to an average of 18 cents in 1948. -7- Fish er:?orts other than herring, which before thb war were mainly salted, as Table IV shows, are now predominantly iced or trozen. Cured herring exports, shown in barrels in the same table, vary irregulhrly from year to year. Exports of fish products, the principal of which (cod liv~r oil, herring oil, and fish meal) are shown in Table V, have increased relat~ve to fish exports since prewar, and have now almost as great an aggregate value. I The following table shows principal exports in lf47-48. Quantity ~, I 1-b::_V~a==l~u:::::e~(m~J.=·l..:,JJ.orU-=i.:::.o~n*r;...l'u.) 19A1. ~ Q;;u;l ~ Fish, Salted and Fresh 1000 tons 113.5 152.0 /159 0 0 17409 Herring, cured 1000 lbs o 66.0 105.7 13.2 i 21 0 7 Cod and Herring Oil 1000 tons 25.9 35.4 I 74.7 103.0 Herring and Fresh Heal 1000 tons 16.6 38 3 0 16.4 39.1 Other exports 21 : 27.2 30.5 Total /290 0 5 369.2 11 January-November ~ Some fish and products included. Principal clther than fish exports I shown in table following. I Other than fish exports, the principal of whichiare shown below for 1947-48, represent a small share of total exports and comlist mainly of animal products. I Unit Quantitz 811 121[1. 12l&1 _I ValueCmiltl/h kr.) 1.2i~ ~ Mutton, frozen tons 1029 411 4919 2008 Sheep casings It 35 44 7:28 785 Wool It 562 277 50p7 1602 Sheep skins, I green-salted thous. 266 420 49'Pl 8778 Fur skins " 7 7 4~0 297 Other hides & skins tons 116 130 6.37 759 Total 166~ l4229 11 January-November Iceland imports practically all of its fuel, bU~lding materials, and industrial raw materials, and much of its food and manuf~ctured goods. Imports of ships and equipment represent a greater proportion, and food, clothing, and fuel, a somewhat smaller proportion, of total imports, n.bw than prewar. Imports of selected items, representing half of total imports, are shown in Table VI. -8- The bulk of Iceland's foreign trade is normally with Europe. During the war, however, most exports went to the United Kingdom, as the summary table below shows, and most imports came from the United States. Trade recently has been reverting to the prewar pattern. (million kroner) Exports 1:ll2 12!Jc 12l& United States 23.7 26.3 United Kingdom , / 227.6 118.7 Other Countries1t 3.0 ~ 254.3 395.7 Imports United States 1650 0 85.7 United Kingdom,/ 51.1 135.9 Other Countrie~ 31·4 .llisl 247.5 456.7 11 Predominantly Europe. Breakdown for 1939 and 1948 shown in Table VII. 9. BALANCE OF PAYMENTS In contrast to usually balanced payments before the war, Iceland has had considerable deficits on current account since the war, amounting to a maximum with all countries in 1947 of 242 million kroner (Table VIII) representing over one-third of expenditures. On the basis of a more nearly balanced trade account in 1948 (Table II), payments for the year, for which complete data are not yet available, apparently will again be nearer to a balance, although the deficit in dollars still continues large. By 1952-53 it is expected, according to the government long-term plan, that an overall balance can be attained, although there may still be a small deficit in dollars. The improvement will result from cutting down imports, particularly from the dollar area; increasing exports, mainly of processed fish products; and reducing transportation expenses, by building up the merchant marine. The large wartime earnings, which were mainly from Allied military expenditures in Iceland during the war, and which amounted at the end of 1944 to over 500 million kroner (see Table X), have now been almost completely utilized, for repaying previous indebtedness and for the excess of recent imports, including new shipso Iceland obtained an ECA loan of $2.3 million in the second quarter of 1948 to finance machinery for herrulg processing plants and a floating herring factoryo Iceland has also received conditional aid of $3.5 million and direct grants of $2.5 million. Procurement authorization through April 30, 1949, total $6 3 million. 0 10.. PRICES, BANKING AND PUBLIC FINANCE The cost-of-living in Iceland has increased, as shown below, roughly threefold since prewar, while wages have increased over five times. (Jan.-March 1939 = 100) Cost-of-Living 1941 160 157 1945 277 467 1946 293 525 1947 315 589 1948 321 579 Source: ERP, Iceland, EGA February 1949. Page 16,. The inflation has resulted from foreign spending in Iceland during the war, high revenue from fish exports, postwar spending in Iceland for reconstruc- tion and devolot)T.llent, and inadequate price and investment controls. Cost-of- living in Reykjavik, shown in Table IX, increased from an average of 102 in 1939 to 315 in 1947. The greatest increase occurred through 1943. In 1948 the increase was very gradual; from 319 in January to 326 in December. The cost of food alone increased somewhat more than all items together, and was 360 in January 1948 and 364 in December. Iceland has three principal banks, the National Bank, with about two- thirds of total assets, the Fisheries Bank, and the Rural Bank. The impact of the war is well shown by bank data in Table X. Deposits, loans, and note circula- tion all increased from prewar more than did prices. From a negative amount in 1939, Iceland built up foreign assets, mainly dollars and sterling, during the war which reached a maximum of 581 million kroner in the middle of 1945. Dollars were accumulated because of occupation payments and because fish exports to the United Kingdom were paid for in dollars under lend-lease. With the large imports required ror reconstruction, these assets were rapidly e~)ended following the war, and at the end of 1948 amounted to about $7 million. Deposits, loans, and note circulation because of high economic activity have been maintained, through 1948, at high levels. The national budget has grown by 13 times in the last 10 years, which is a greater increase than shown by bank or price indices. The 1947 and 1948 budgets~ about 250 million kroner in each year, represent about one-third of the national income. Budgets from 1938 through 1946 were balanced p but not in 1947-8,. In order to prevent domestic prices from rising and to maintain exports one-quarter of recent budgets have been spent for subsidieso The proposed 1949 budget shows an estimated surplus, but in view of the poor herring season and the continuing rise in sub- sidies, it is likely that expenditures will again exceed revenues,. Iceland TABLE I Fishing Fleet Motor Other Motor other Year Boats~ Trawlers Steamers Boats Trawlers Steamers Total - (--~) (6lJ1) ~~} 1915 135 20 6 4.7 5.1 1.2 11.0 1920 159 28 2 4.6 8.7 0.2 13.7 1925 212 47 27 6.0 13.6 2.8 22.4 1930 224 41 35 5.5 13.9 3.9 23.3 1935 277 37 23 6.6 12.L 2.7 21.7 1940 334 .35 23 9.6 12.2 2.3 24.1 1944 314 31 12 ll.3 10.0 1.5 22.7 1945 360 31 8 14.4 10.0 1.1 25.5 1948 4#1 54.Ji !I Twelve tons and over; sailing boats inc~uded in 1925 and before. Y End of 1948; from data supplied to OEEC Source: Iceland, 1946, Reykjavik Handbook edited by Director of Statistical Bureau. Iceland Registered Vessels at End of 1948 According t.o an extract from the register of shipping, published in the Ice- landic Nautic Almanac for 1949, the number and tonnage of registered vessels over 12 gross tons at the end of the year 1948 were as follO'fs: Steam-Ves sela Motor-Vessels Total Gross Gross Gross Size of Vessel Number Tonnage Number Tonnage Number Tonnage 2000-4999 gross tons 1 4724 2 6902 3 ll626 1000-1999 .. " 4 5897 ~ 4493 7 103$0 500- 999 II " n 3u 22638 4 "" 2861 38 25499 100- 499 " 30 8591 51 8473 81. 17064 50- 99 It 30- 49 If II It - 146 89 9770 3109 146 80 9770 3109 12- 29 II II 214 4010 214 4010 Total. 69 41850 500 39618 569 81468 Kind of Employment Trawlers 49 26663 49 26663 Other Fishing Vessels II 2583 h83 23278 494 25861 Passenger Ships 3 3601 3 3llS 6 6716 Freight Ships 4 8606 10 12183 14 20789 Ferries 2 502 2 502 Government Inspection Ship 1 S07 1 507 Surveying Vessel l. 33 l. 33 Dredging Vessel 1 286 1 286 Tug 1 III 1 III Total £~ 48850 500 39618 569 81468 Source: Iceland Statistical Bulletin, February 1949. Iceland TA:BI..E II Foreign Trade Year Exports Imports Balance Exports Imports Value (million kronur) Quantity(1937= 100) 1937 59 53 6 100 100 1938 59 50 9 106 99 1939 71 64 7 99 109 1940 133 74 59 113 85 1941 189 131 58 113 134 1942 201 248 - 47 113 205 1943 233 251 - 18 158 181 1944 254 248 6 168 182 1945 267 320 -53 173 253 1946 291 443 -152 167 347 1947 290 519 -229 165 347 194~ --;369- 395- --i'6 188 270 3,& qs-7 {, I 1949: January February March ~ Source: Iceland Trade Statistics. IMF Bulletin. Iceland TABLE III Exports of Fish, Salted and Fresh, Total Quantitl Value Unit Value 1000 metric tons million kr. Kr. per kilo $ ;eer kilo 1932 76.9 30.1 0.39 0.061 1935 69.8 24.1 0.35 0.077 1939 60.4 26.0 0.43 0.075 1940 126.7 87.7 0.69 0.106 1941 140.4 129.1 0.92 0.142 1942 1L6.6 134.9 0.92 0.142 1943 151.71 144.6 0.95 0.11.J,6 1944 166. 7/..1- 168.36 1.01 0.156 1945 152.17 168.37 l.ll 0.171 19L6 108.22 141.97 1.31 0.202 1947 113.5 159.0 1.40 0.216 194~ 152.0 174.9 1.15 0.177 January - November Source: Iceland Trade Statistics. Iceland TA:BLE IV Exports of Fish. Salted and Fresh. by Category Cured Salt Fish Fresh fish on ice l!& (cli:efish) Uncure~ Salt Fish and frozen Herring, cured 1000 tons m. kronur 1000 tons m. kronur 1000 tons m. kronur 1000 bb1s. m. kronur 1932 59.1 21.9 17.8 3.8 ... 4.4 249.2 4.5 1935 38.9 16.0 14.9 3.5 16.0 4.6 14,.6 5.7 1939 19.2 10.6 19.9 6.5 21.3 8.9 287.9 11.7 1940 17 •.5 15.2 9.) 4.8 99.9 67.7 38.0 2.8 1941 4.4 6.0 18.5 16.9 117.5 106.2 75.7 6.) 19l f.2 2.4 3.9 6.5 7.) 137.7 123.7 - ... 1943 0.71 1.5 1.5 2.0 149.5 141.1 31.6 4.8 191.!4 0.04 0.16 1.3 1.5 165.4 166.7 19.7 ,.7 1945 0.17 0.37 0.6 0.8 151.4 167.2 115.0 17.1 1946 0.02 0.07 11.5 18.9 96.7 123.0 158.7 28.0 1947 0.) 0.8 26.6 46.4 86.6 111.8 66.0 13.2 19~1 1.) 3.8 14.7 26.7 136.0 144.1.t· 105.7 21.7 11 January - November Source: Iceland Trade Statistics. Iceland TABLE V Exports of Principal Fish Products kr. kr. kr. Ood Liver 011 per Herring Oil per Herring & Filh Mea~ per ~ 1000 tons m, kron4,t kilo 1000 to,ne m. kronur kilO 1000 tons m. kronyt kilo 1932 3.9 1.8 0.46 9.9 1,6 0.16 13.3 2.6 0.20 193.5 4.8 3. 6 0.7.5 7.4 1,6 0.22 10.0 2.0 0.20 1939 6.6 .5.7 0.86 17.3 6.2 0.36 2.5.6 7.2 0.28 1940 ,.6 13.2·· 2.36 22.4 12.7 0.,7 23.1 9.) O.qo 1941 ,.4 20.1 :3-72 27.8 14.2 0•.51 19., 7.3 0.37 1942 ,., 21.8 3.96 26., 21.0 0.79 17.9 8.4 0.47 1943 ,.6 20.2 3. 61 30.0 27.2 0.91 13.6 6., 0.48 1944 6.4 22.0 3. 44 26.4 26.1 0.99 28.2 13.7 0.49 194.5 8.4 32.7 3.89 13.9 13., 0.97 7.8 3.8 0.49 1946 7.7 28 •.5 3.70 17., 26.8 1.,3 16.4· 12.1 0.74 1947 ,.4 22.9 4.24 20 •.5 .51.8 2•.53 16.6 16.4 0.99 1948 7., 31.1 4.1, 27.9 71.9 2.,8 38.3 39.1 1.02 Source: Iceland Trade Statistics. Iceland TABlE VI Imports of Selected Items 1947 1948~/ 1947 194aY Quantity in Value in 1000 tons million kr. Grain 20.2 16.6 19.9 16.7 Animal Fodder 1.4 4.9 0.9 3.8 Wood and Products 33.7 13.9 32.7 13.7 Paper and Products 4.2 3.6 10.0 7.3 Coal and Coke 163.8 95.9 27.1 16.1~ Fuel Oil 98.7 81.9 19.5 18.6 cements 63.7 38.8 12.0 7.9 Iron and Steel 1l.6 8.6 15.5 11.9 Ships and Boats 18.8 16.3 88.8 56.2 Vehicles and Planes 6.5 1.1 47.1 13.1 Total 273.5 165.6 Percent of all Imports 53 % 55 % Y January - September Source: Iceland Trade Statistics Iceland TABLE VII ImE0rls and rE0rts (100 kronur ) I. by Countries 19.39 1948 tmE° rls Exports Balance Im£2rts Exports Balance Belgium 0.7 0.6 .... 0.1 li • .3 0.2 .... li.l Czechoslovakia J./ 1/ 22.9 29.8 + 6.9 12';'6 1";7 40.8 15.7 - 25.1 Denmark Finland France 0.1 0.1 0.1 0.1 - 4.9 - li.8 4.7 17.6 16.8 ... 5.8 .. 12.1- Germa.ny 10.1 7.5 .... 2.6 1.1 67.6 of 66.5 Great Britain 13.8 U.8 .. 2.0 1.3,.9 li8.7 -17.2 ~ Greece 1.1 -+ 1.1 0.6 1l.9 -+ li.3 ItalJr 4.8 .os 12.9 1.3.0 ... 0.1 Netherlands 0.9 4.5 + .3.6 25.1 34.7 ... 9.6 Nol"'Wev- Poland ,.6 0.7 6.8 0.2 .. 1.2 - 0.5 5.6 13.9 1.9 8.9 - - .3.7 5.0 Portugal Russia 0.1 - 5.4 of 5•.3 - 0.4 0.7 6.1 - . 0.4 5.4 Sweden 4.6 8.5 y. + 3.9 22.1 14.8 - - 7• .3 o~ SWitzerland 1.5 0.7 0.8 Brazil 1.6 + 1 •.3 4.5 1.0 - .3.5 7~ Canada 0.3 ... 0•.3 19.7 0.1 - 19.6 United States 2.3y .. 5.1 85.7 26.3 Venezuela other Countries 1.3 2.8 - 1.6 - ... 1 •.3 1.2 26.7 8.8 9.9 - 59.4 - 26.7 + 1.1 - Total 61.6 69.7 i 8.1 456.7 395.7 - 61.0 !I Less than 50,000 kronur. y Curacao Source: Iceland Trade Statistics. Iceland TABLE VIII Balance of Payments (million kronur) 19.38 1946 1947 ltr~« Receipts: Exports 58.6 291.4 290.5 Transportation 6.4 64.9 65.6 Insurance 2.1 10.8 12.6 Investments - 6• .3 2.8 other invisibles 0.5 7.3 4.7 Total 67.6 .380.7 376.2 Expenditures: Imports 50.5 448.7 519.1 Foreign Travel 0.8 18.9 12.0 Transportation 5.8 47 ..0 56.1 Insurance .3.1 16.5 20.6 Investment 2.7 0.9 1.0 Other invisib1es 0.6 33.5 9.1 Total 63.5 565.5 617.9 Balance -184.8 Source: IMF, Re~.rised Data for 1948 Yearbook, November 1948. Iceland !able IX Oost of LiviD& in :Reykjavik (J~eh 1939 100) = 411 ItellS Food 0!!J.:l 1939 • • • • • • • • • • • • 102 1940 • • • • • • • • • • • • 131 1941 • • • • • • • • • • • • 163 1942 • • • • • • • • • • • • 212 1943 •• • • • • • • • • • • 256 19144 • • • • •• • • • • • • 268 1945 • • • • • • • • • • • • 217 19146 • ••••• •••• • • 293 1947 • • • • • • • • • • • • 315 19i.t8: J s.ml8.1'7 • • •• • ••• 319 June • • • • • • • • • 319 December•• • • •••• 326 J a:tt.rJJJ:ry • • • • • • • • Source: Iceland Statistical Balletin Iceland !able X Posi tion of the 'Bank,).! (Million Kronnr) llni 0'1 Month DepOBitJJ LoaniJI Bot. Circulation l'oreig Hlet )! 19'9' J a.nua.l"T • • • •••• 71 93 12 ';9 ••• ••••• J't1I1e 71 101 12 -17 ])ec_ber•• • • • • • 76 104 14 -12 1940. JUll.e• •• •• •• • 88 110 15 ., December•• • • • • • 130 97 2S 60 1941: Ju.ae • • • • • • • • 169 92 3S I1S December•• • • • • • 222 105 51 16.5 1942. June • •• • •••• 265 127 68 212 December. • • •••• 35' 17' 108 28.5 1943: June • • • • •• •• 390 172 124 364 December• ••• •• •• 460 193 145 lI4? 1944: Juae • • • • •• •• 541 212 144 521 December•• • •• •• 591 236 167 562 1945: June • • • • •• •• 629 264 167 581 Dec_ber•• • •• •• 603 337 177 467 1946. June • • • • •• •• 59' 420 167 364 December•• • • • •• 538 Jt62 167 217 1947. June • • • • • • • • 528 57' 158 76 Ilecember•• • • • • • 562 518 10? 3B 19118: J1U18 • • • • • • • • 588 605 151 28 December. • •••• • 577 601 175 46 ~ !he liatio!J&l :Bank. 'the ]'1aheri8. Bank. and. 'the B:a.ral :Ba.mt. Deposits on current account. ani saTing. accounts (deposits from bank. and eavings 'buks not included..) IDla!l.d bills, 10ana on aecur! t7. adTances on cash cred.i t and current account •• ¥J Jorelga bonda, Dalance with foreign correspondents and foreign bills. Source: Iceland Statistical Bttlletin