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Iceland Economy 2017
https://theodora.com/wfbcurrent/iceland/iceland_economy.html
SOURCE: 2017 CIA WORLD FACTBOOK AND OTHER SOURCES











Iceland Economy 2017
SOURCE: 2017 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on January 12, 2017

Economy - overview:
Iceland's Scandinavian-type social-market 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 achieved high growth, low unemployment, and a remarkably even distribution of income. The economy depends heavily on the fishing industry, which provides 40% of merchandise export earnings, more than 12% of GDP, and employs nearly 5% of the work force. It remains sensitive to declining fish stocks as well as to fluctuations in world prices for its main exports: fish and fish products, aluminum, and ferrosilicon. Since 2010, tourism has become the main pillar of Icelandic economic growth, with the number of tourists expected to reach or exceed 4.5 times the Icelandic population in 2016.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. In fall 2013, the Icelandic Government approved a joint application by Icelandic, Chinese, and Norwegian energy firms to conduct oil exploration off Iceland’s northeast coast, although no exploration has yet taken place. 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, although the financial crisis has put several investment projects on hold.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 more than 10 times the country's GDP, became unsustainable. Iceland's three largest banks collapsed in late 2008. The country secured over $10 billion in loans from the IMF and other countries to stabilize its currency and financial sector, and to back government guarantees for foreign deposits in Icelandic banks. 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. Iceland’s financial woes prompted an initial increase in public support to join the EU and the euro zone, with accession negotiations beginning in July 2010, but negotiations were suspended under the 2013 center-right government. Most macroeconomic indicators and employment have rebounded to pre-crisis levels, driven primarily by the unprecedented growth in tourism – averaging over 20% annually – following the well publicized volcanic eruption in 2010.

GDP (purchasing power parity):
$16.15 billion (2016 est.) $15.38 billion (2015 est.) $14.8 billion (2014 est.)
note: data are in 2016 dollars
country comparison to the world: 153
[see also: GDP country ranks ]

GDP (official exchange rate):
$19.44 billion (2015 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4.9% (2016 est.) 4% (2015 est.) 2% (2014 est.)
country comparison to the world: 39
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$48,100 (2016 est.) $46,200 (2015 est.) $45,000 (2014 est.)
note: data are in 2016 dollars
country comparison to the world: 28
[see also: GDP - per capita country ranks ]

Gross national saving:
23.5% of GDP (2016 est.) 23.5% of GDP (2015 est.) 21% of GDP (2014 est.)
country comparison to the world: 56
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 49.3%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 22.5%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 19.8%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: -0.1%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 52.4%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -43.9% (2016 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 5.9%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 20.4%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 73.7% (2016 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

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

Industrial production growth rate:
1.4% (2016 est.)
country comparison to the world: 134
[see also: Industrial production growth rate country ranks ]

Labor force:
195,000 (2016 est.)
country comparison to the world: 175
[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:
2.7% (2016 est.) 4% (2015 est.)
country comparison to the world: 19
[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: 130
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $10.35 billion
[see also: Budget revenues country ranks ]
expenditures: $7.911 billion (2016 est.)
[see also: Budget expenditures country ranks ]

Taxes and other revenues:
53.2% of GDP (2016 est.)
country comparison to the world: 9
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
12.5% of GDP (2016 est.)
country comparison to the world: 3
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
56.5% of GDP (2016 est.) 67.6% of GDP (2015 est.)
country comparison to the world: 72
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
1.9% (2016 est.) 1.6% (2015 est.)
country comparison to the world: 106
[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: 74
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
7.6% (31 December 2016 est.) 7.61% (31 December 2015 est.)
country comparison to the world: 110
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$3.327 billion (31 December 2016 est.) $3.314 billion (31 December 2015 est.)
country comparison to the world: 113
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$8.368 billion (31 December 2013 est.) $8.12 billion (31 December 2013 est.)
country comparison to the world: 111
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$18.93 billion (31 December 2016 est.) $18.25 billion (31 December 2015 est.)
country comparison to the world: 88
[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: 95
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$567 million (2016 est.) $710 million (2015 est.)
country comparison to the world: 38
[see also: Current account balance country ranks ]

Exports:
$4.6 billion (2016 est.) $4.653 billion (2015 est.)
country comparison to the world: 108
[see also: Exports country ranks ]

Exports - commodities:
fish and fish products 40%, aluminum, animal products, ferrosilicon, diatomite (2010 est.)

Exports - partners:
Netherlands 26.1%, UK 11.6%, Spain 11.5%, Germany 7.4%, France 5.7%, US 5.7%, Norway 4.7% (2015)

Imports:
$5.024 billion (2016 est.) $4.924 billion (2015 est.)
country comparison to the world: 121
[see also: Imports country ranks ]

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

Imports - partners:
Norway 10.1%, Germany 8.6%, US 7.9%, China 7.9%, Denmark 7.1%, Netherlands 5.9%, Brazil 5.8%, UK 5% (2015)

Reserves of foreign exchange and gold:
$4.412 billion (31 December 2016 est.) $5.041 billion (31 December 2015 est.)
country comparison to the world: 95
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$27.3 billion (31 December 2016 est.) $31.04 billion (31 December 2015 est.)
country comparison to the world: 78
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$17.19 billion (31 December 2016 est.) $16.72 billion (31 December 2015 est.)
country comparison to the world: 83
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$15.44 billion (31 December 2016 est.) $15.59 billion (31 December 2015 est.)
country comparison to the world: 57
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Icelandic kronur (ISK) per US dollar - 129.3 (2016 est.) 131.92 (2015 est.) 131.92 (2014 est.) 116.77 (2013 est.) 125.08 (2012 est.)


NOTE: The information regarding Iceland on this page is re-published from the 2017 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iceland Economy 2017 information contained here. All suggestions for corrections of any errors about Iceland Economy 2017 should be addressed to the CIA.




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