Economy of Iceland
From Wikipedia, the free encyclopedia
The economy of Iceland is small and subject to high volatility. In 2011, gross domestic product was US$12 billion, but by 2018 it had increased to a nominal GDP of US$27 billion. With a population of 387,000, this is $55,000 per capita, based on purchasing power parity (PPP) estimates.[18] The 2008–2011 Icelandic financial crisis produced a decline in GDP and employment that has since been reversed entirely by a recovery aided by a tourism boom starting in 2010. Tourism accounted for more than 10% of Iceland's GDP in 2017.[19] After a period of robust growth, Iceland's economy is slowing down according to an economic outlook for the years 2018–2020 published by Arion Research in April 2018.[20]
Currency | Icelandic króna (ISK, kr) |
---|---|
Calendar year | |
Trade organisations | EFTA, EEA, OECD, WTO |
Country group | |
Statistics | |
Population | 387,758 (1 January 2023)[3] |
GDP | |
GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
9.8% (March 2023)[7] | |
Population below poverty line | |
25.2 low (2017, Eurostat)[10] | |
| |
Labour force | |
Labour force by occupation |
|
Unemployment | |
Average gross salary | 553,000 ISK / €4,000 month |
388,000 ISK / €2,800 month | |
Main industries | tourism, fish processing; aluminum smelting; geothermal power, hydropower; medical/pharmaceutical products |
External | |
Exports | $9.775 billion (2021 est)[6] |
Export goods | fish and fish products (42%), aluminum (38%), agricultural products, medicinal and medical products, ferro-silicon (2015) |
Main export partners |
(2019)[6] |
Imports | $10.234 billion (2021 est.) |
Import goods | refined petroleum, aluminum oxide, carbon/graphite electronics, cars, packaged medicines (2019) |
Main import partners |
(2021)[6] |
FDI stock | |
$857 million (2017 est.)[6] | |
Gross external debt | $21.7 billion (31 December 2017 est.)[6] |
Public finances | |
40% of GDP (2017 est.)[6] | |
+1.5% (of GDP) (2017 est.)[6] | |
Revenues | 10.39 billion (2017 est.)[6] |
Expenses | 10.02 billion (2017 est.)[6] |
Economic aid | c. $40 million (0.24% GDP, 2015 budget) |
Moody's Investors Service[17]
| |
$6.567 billion (31 December 2017 est.)[6] | |
Iceland has a mixed economy with high levels of free trade and government intervention. However, government consumption is less than other Nordic countries. Hydro-power is the primary source of home and industrial electrical supply in Iceland.[21]
In the 1990s Iceland undertook extensive free market reforms, which initially produced strong economic growth. As a result, Iceland was rated as having one of the world's highest levels of economic freedom[22] as well as civil freedoms. In 2007, Iceland topped the list of nations ranked by Human Development Index[23] and was one of the most egalitarian, according to the calculation provided by the Gini coefficient.[24]
From 2006 onwards, the economy faced problems of growing inflation and current account deficits. Partly in response, and partly as a result of earlier reforms, the financial system expanded rapidly before collapsing entirely in a sweeping financial crisis. Iceland had to obtain emergency funding from the International Monetary Fund and a range of European countries in November 2008. The economy has since rebounded, beginning in 2010.