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Iceland Economy 2019

SOURCE: 2019 CIA WORLD FACTBOOK AND OTHER SOURCES











Iceland Economy 2019
SOURCE: 2019 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on February 08, 2019

Economy - overview:
Iceland's economy combines a capitalist structure and free-market principles with an extensive welfare system. Except for a brief period during the 2008 crisis, Iceland has in recent years achieved high growth, low unemployment, and a remarkably even distribution of income. Iceland's economy has been diversifying into manufacturing and service industries in the last decade, particularly within the fields of tourism, software production, and biotechnology. Abundant geothermal and hydropower sources have attracted substantial foreign investment in the aluminum sector, boosted economic growth, and sparked some interest from high-tech firms looking to establish data centers using cheap green energy.

Tourism, aluminum smelting, and fishing are the pillars of the economy. For decades the Icelandic economy depended heavily on fisheries, but tourism has now surpassed fishing and aluminum as Iceland’s main export industry. Tourism accounted for 8.6% of Iceland’s GDP in 2016, and 39% of total exports of merchandise and services. From 2010 to 2017, the number of tourists visiting Iceland increased by nearly 400%. Since 2010, tourism has become a main driver of Icelandic economic growth, with the number of tourists reaching 4.5 times the Icelandic population in 2016. Iceland remains sensitive to fluctuations in world prices for its main exports, and to fluctuations in the exchange rate of the Icelandic Krona.

Following the privatization of the banking sector in the early 2000s, domestic banks expanded aggressively in foreign markets, and consumers and businesses borrowed heavily in foreign currencies. Worsening global financial conditions throughout 2008 resulted in a sharp depreciation of the krona vis-a-vis other major currencies. The foreign exposure of Icelandic banks, whose loans and other assets totaled nearly nine times the country's GDP, became unsustainable. Iceland's three largest banks collapsed in late 2008. GDP fell 6.8% in 2009, and unemployment peaked at 9.4% in February 2009. Three new banks were established to take over the domestic assets of the collapsed banks. Two of them have majority ownership by the state, which intends to re-privatize them.

Since the collapse of Iceland's financial sector, government economic priorities have included stabilizing the krona, implementing capital controls, reducing Iceland's high budget deficit, containing inflation, addressing high household debt, restructuring the financial sector, and diversifying the economy. Capital controls were lifted in March 2017, but some financial protections, such as reserve requirements for specified investments connected to new inflows of foreign currency, remain in place.

GDP (purchasing power parity):
$18.18 billion (2017 est.)
$17.48 billion (2016 est.)
$16.29 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 153
[see also: GDP country ranks ]

GDP (official exchange rate):
$24.48 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4% (2017 est.)
7.4% (2016 est.)
4.5% (2015 est.)
country comparison to the world: 77
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$52,200 (2017 est.)
$51,700 (2016 est.)
$48,900 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 25
[see also: GDP - per capita country ranks ]

Gross national saving:
25.8% of GDP (2017 est.)
29.1% of GDP (2016 est.)
24.5% of GDP (2015 est.)
country comparison to the world: 52
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 50.4% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 23.3% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 22.1% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 47% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -42.8% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 5.8% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 19.7% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 74.6% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
potatoes, carrots, green vegetables, tomatoes, cucumbers; mutton, chicken, pork, beef, dairy products; fish

Industries:
tourism, fish processing; aluminum smelting;; geothermal power, hydropower; medical/pharmaceutical products

Industrial production growth rate:
2.4% (2017 est.)
country comparison to the world: 120
[see also: Industrial production growth rate country ranks ]

Labor force:
198,700 (2017 est.)
country comparison to the world: 172
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 4.8%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 22.2%
[see also: Labor force - by occupation - industry country ranks ]
services: 73% (2008)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
2.8% (2017 est.)
3% (2016 est.)
country comparison to the world: 30
[see also: Unemployment rate country ranks ]

Population below poverty line:
NA
note: 332,100 families (2011 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
28 (2006)
25 (2005)
country comparison to the world: 142
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 10.39 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 10.02 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
42.4% (of GDP) (2017 est.)
country comparison to the world: 31
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
1.5% (of GDP) (2017 est.)
country comparison to the world: 22
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
40% of GDP (2017 est.)
51.7% of GDP (2016 est.)
country comparison to the world: 126
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
1.8% (2017 est.)
1.7% (2016 est.)
country comparison to the world: 93
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
5.4% (31 January 2012)
5.75% (31 December 2010)
country comparison to the world: 77
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
7.26% (31 December 2017 est.)
8.24% (31 December 2016 est.)
country comparison to the world: 116
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$4.945 billion (31 December 2017 est.)
$4.251 billion (31 December 2016 est.)
country comparison to the world: 106
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$4.945 billion (31 December 2016 est.)
$4.251 billion (31 December 2016 est.)
country comparison to the world: 110
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$24.51 billion (31 December 2017 est.)
$21.18 billion (31 December 2016 est.)
country comparison to the world: 86
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$2.825 billion (31 December 2012 est.)
$2.021 billion (31 December 2011 est.)
$1.996 billion (31 December 2010 est.)
country comparison to the world: 94
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$857 million (2017 est.)
$1.556 billion (2016 est.)
country comparison to the world: 52
[see also: Current account balance country ranks ]

Exports:
$4.957 billion (2017 est.)
$4.483 billion (2016 est.)
country comparison to the world: 110
[see also: Exports country ranks ]

Exports - partners:
Netherlands 25.5%, Spain 13.6%, UK 9.4%, Germany 7.6%, US 7%, France 6.3%, Norway 4.9%

Exports - commodities:
fish and fish products (42%), aluminum (38%), agricultural products, medicinal and medical products, ferro-silicon (2015)

Imports:
$6.525 billion (2017 est.)
$5.315 billion (2016 est.)
country comparison to the world: 119
[see also: Imports country ranks ]

Imports - commodities:
machinery and equipment, petroleum products, foodstuffs, textiles

Imports - partners:
Germany 10.7%, Norway 9.2%, China 7%, Netherlands 6.7%, US 6.4%, Denmark 6.2%, UK 5.7%, Sweden 4.1%

Reserves of foreign exchange and gold:
$6.567 billion (31 December 2017 est.)
$7.226 billion (31 December 2016 est.)
country comparison to the world: 89
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$21.7 billion (31 December 2017 est.)
$25.02 billion (31 December 2016 est.)
country comparison to the world: 91
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$6.666 billion (31 December 2017 est.)
$13.89 billion (31 December 2016 est.)
country comparison to the world: 101
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$11.24 billion (31 December 2017 est.)
$17.64 billion (31 December 2016 est.)
country comparison to the world: 63
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Icelandic kronur (ISK) per US dollar -
111.7 (2017 est.)
120.81 (2016 est.)
120.81 (2015 est.)
131.92 (2014 est.)
116.77 (2013 est.)


NOTE: 1) The information regarding Iceland on this page is re-published from the 2019 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iceland Economy 2019 information contained here. All suggestions for corrections of any errors about Iceland Economy 2019 should be addressed to the CIA.
2) The rank that you see is the CIA reported rank, which may habe the following issues:
  a) They assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
  b) The CIA sometimes assignes counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order






This page was last modified 08-Feb-19
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