Arctic Region > Iceland > Economy

View full size

Agriculture > products potatoes, green vegetables, mutton, dairy products, fish
Big Mac Index	$6.67		[1st of 65]
Business efficiency	85.349		[4th of 51]
Debt > External	$3,073,000,000.00		[65th of 136]
Distribution of family income > Gini index	25		[40th of 43]
Economic aid > Donor	$6,700,000.00		[25th of 26]
Economic freedom	3.1		[14th of 156]
Economy > Overview Iceland's Scandinavian-type economy is basically capitalistic, yet with an extensive welfare system (including generous housing subsidies), low unemployment, and remarkably even distribution of income. In the absence of other natural resources (except for abundant geothermal power), the economy depends heavily on the fishing industry, which provides 70% of export earnings and employs 6% of the work force. The economy 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. Substantial foreign investment in the aluminum and hydropower sectors has boosted economic growth which, nevertheless, has been volatile and characterized by recurrent imbalances. Government policies include reducing the current account deficit, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, and diversifying the economy. The government remains opposed to EU membership, primarily because of Icelanders' concern about losing control over their fishing resources. Iceland's economy has been diversifying into manufacturing and service industries in the last decade, and new developments in software production, biotechnology, and financial services are taking place. The tourism sector is also expanding, with the recent trends in ecotourism and whale watching. The 2006 closure of the US military base at Keflavik had very little impact on the national economy; Iceland's low unemployment rate aided former base employees in finding alternate employment.
Exchange rates Icelandic kronur per US dollar - 70.192 (2004), 76.709 (2003), 91.662 (2002), 97.425 (2001), 78.616 (2000)
Exports	$4,793,000,000.00		[100th of 189]
GDP	$15,853,990,000.00		[86th of 203]
GDP > PPP	$9,596,000,000.00		[126th of 163]
GDP > Real growth rate	3.8%		[128th of 198]
GDP growth > annual %	5.53 annual %		[62nd of 187]
Gross National Income	$8,152,480,000.00		[83rd of 172]
Human Development Index	0.956		[2nd of 178]
Inflation rate (consumer prices)	5.1%		[93rd of 192]
Public debt	27.6 % of GDP		[77th of 121]
Research and development spending	2.1%		[11th of 69]
Tourist arrivals	202,000		[100th of 152]

Interesting facts on Icelandic Economy

• Three of the top ten countries for GDP per capita are island nations: Bermuda, Cayman Islands, and Iceland.

Related links:

• Forum discussion > Economy
• Stay updated with current stat feeds! Subscribe to the Economy RSS / Atom feeds
•  Subscribe to our popular Economy factoids RSS / Atom feeds
• Save this page on  del.icio.us / furl / your bookmarks

More facts and figures on Iceland