Economy of Iceland
Iceland
Currency	Icelandic krona (ISK)
Fiscal year	calendar year
Trade organisations	WTO, EFTA, OECD, EEA
Statistics
GDP (PPP)	{{{gdp}}} (141st [1])
GDP growth	{{{growth}}}
GDP per capita	{{{per capita}}}
GDP by sector	{{{sectors}}}
Inflation (CPI)	6.8% (2006 est.)
Population below poverty line	no data
Labour force	173,000 (2006 est.)
Labour force by occupation	agriculture: 5.1%, industry: 23%, services: 76% (2006)
Unemployment	1.3% (2006 est.)
Main industries	fish processing; aluminum smelting, ferrosilicon production; geothermal power, tourism
Trade
Exports	$3.587 billion f.o.b (2006 est.)
Export goods	fish and fish products 70%, aluminum, animal products, ferrosilicon, diatomite
Main export partners	UK 17.9%, Germany 16.4%, Netherlands 13%, US 8.1%, Spain 7.7%, Denmark 4.3% (2005)
Imports	$5.189 billion (2006 est.)
Import goods	machinery and equipment, petroleum products, foodstuffs, textiles
Main import partners	Germany 13.4%, US 9.1%, Sweden 8.6%, Denmark 7.3%, Norway 7.2%, UK 5.9%, China 5.3%, Netherlands 5%, Japan 4.7% (2005)
Public finances
Public debt	$3.073 billion (2002)
Revenues	$7.345 billion
Expenses	$6.655 billion; including capital expenditures of $467 million (2006 est.)
Economic aid	no data
Main source All values, unless otherwise stated, are in US dollars

The economy of Iceland is small but well-developed, with a gross domestic product estimated at US $10.57 billion in 2005 (and a per capita GDP of $38,100, which is among the world's highest.)^[1] Image File history File links Download high resolution version (1024x722, 269 KB) Summary From World Wind Licensing File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... Króna is the name of the currency used in Iceland . ... “WTO” redirects here. ... The European Free Trade Association (EFTA) was established on May 3, 1960 as an alternative for European states that were not allowed or did not wish to join the European Community (now the European Union). ... The Organization for Economic Co-operation and Development (OECD) is an international organization of those developed countries that accept the principles of representative democracy and a free market economy. ...  EFTA countries (except Switzerland)  EU countries Together these form the EEA. The European Economic Area (EEA) came into being on January 1, 1994 following an agreement between the European Free Trade Association (EFTA) and the European Union (EU). ... PPP The purchasing power parity (PPP) theory was developed by Gustav Cassel in 1920. ... There are three lists of countries of the world sorted by their gross domestic product (GDP) (the value of all final goods and services produced within a nation in a given year). ... It has been suggested that this article be split into multiple articles accessible from a disambiguation page. ... Map of countries showing percentage of population who have an income below the national poverty line The poverty line is the level of income below which one cannot afford to purchase all the resources one requires to live. ... This article does not cite any references or sources. ... Motto: (Out Of Many, One) (traditional) In God We Trust (1956 to date) Anthem: The Star-Spangled Banner Capital Washington D.C. Largest city New York City None at federal level (English de facto) Government Federal constitutional republic  - President George Walker Bush (R)  - Vice President Dick Cheney (R) Independence from... USD redirects here. ... This article is about GDP in the context of economics. ... USD redirects here. ... Per capita is a Latin phrase meaning for each head. ...

Like the other Nordic countries, Iceland has a mixed economy that is mainly capitalistic but supports an extensive welfare state. Social expenditure is, however, below that of mainland Scandinavia and most of western Europe. Political map of the Nordic countries and associated territories. ... A mixed economy is an economy that has a mix of economic systems. ... In economics, a capitalist is someone who owns capital, presumably within the economic system of capitalism. ... The Welfare State of the United Kingdom was prefigured in the William Beveridge Report in 1942, which identified five Giant Evils in society: squalor, ignorance, want, idleness and disease. ... The Welfare State of the United Kingdom was prefigured in the William Beveridge Report in 1942, which identified five Giant Evils in society: squalor, ignorance, want, idleness and disease. ...

The Icelandic economy is highly dependent on the fishing industry, which provides 70% of export income and employs 4% of the workforce; therefore, the state of the economy remains sensitive to world prices for fish products.^[2] Fishing is the activity of hunting for fish by hooking, trapping, or gathering. ...

Geography and resources

Iceland occupies a land area of 103,000 square kilometers. It has a 4,790 kilometer coastline and a 200 nautical mile (370.4 km) exclusive economic zone extending over 758,000 square kilometers of water. Approximately 20% of Iceland's land is arable, since the island's terrain is mostly mountainous and volcanic.^[3] A nautical mile or sea mile is a unit of length. ... In geography, arable land is a form of agricultural land use, meaning land that can be (and is) used for growing crops. ...

Iceland has few proven mineral resources. In the past, deposits of sulphur have been mined, and diatomite (skeletal algae) was extracted from lake Mývatn until recently. That plant has now been closed for environmental reasons. The only natural resource conversion in Iceland is the manufacture of cement. Concrete is widely used as building material, including for all types of residential housing. For other uses, see Mineral (disambiguation). ... For the chemical element see: sulfur. ... Diatomaceous earth (also known as diatomite, DE or kieselguhr) is a naturally occurring, light-colored, solid material that is easily crumbled into a fine dust. ... Lake Mývatn, with groups of grass-covered pseudocraters. ... For other uses, see Cement (disambiguation). ... This article is about the construction material. ...

By harnessing the abundant hydroelectric and geothermal power sources, Iceland's renewable energy industry provides over 70% of all the nation's primary energy^[4] - proportionally more than any other country^[5] - with 99.9% of Iceland's electricity being generated from renewables. The Icelandic Parliament decided in 1998 to convert vehicle and fishing fleets to hydrogen fuel and consequently Iceland expects to be energy-independent, using 100% renewable energy, by 2050.^[6] Hydroelectric dam diagram The waters of Llyn Stwlan, the upper reservoir of the Ffestiniog Pumped-Storage Scheme in north Wales, can just be glimpsed on the right. ... Earth cutaway from core to exosphere. ... Geothermal borehole outside Reykjavík. ... Primary energy is energy contained in raw fuels and any other forms of energy received by a system as input to the system. ... Electricity (from New Latin ēlectricus, amberlike) is a general term for a variety of phenomena resulting from the presence and flow of electric charge. ... The Althing (Modern Icelandic Alþingi; Old Norse Alþing) is the national parliament: literally, the all-thing (or General Assembly) of Iceland. ... Hydrogen fuel is potentially an alternative to gasoline, creating a hydrogen economy. ... Renewable energy effectively utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. ...

By far the largest of the many Icelandic hydroelectric power stations is Kárahnjúkavirkjun (690 MW), which is being constructed in the area north of Vatnajökull. Other stations include Búrfell (270 MW), Hrauneyjarfoss (210 MW), Sigalda (150 MW), Blanda (150 MW), and more. Iceland has explored the feasibility of exporting hydroelectric energy via submarine cable to mainland Europe and also actively seeks to expand its power-intensive industries, including aluminium and ferro-silicon smelting plants. Over 80% of the energy in Iceland is generated in hydroelectric power stations. ... When completed, Kárahnjúkavirkjun will be by far the largest of the many Icelandic hydroelectric power stations. ... Iceland as seen from space, with Vatnajökull appearing as a white area to the lower right Vatnajökull, Iceland Grímsvötn in the Vatnajökull glacier Vatnajökull Vatnajökull from the road to Jökulsárlón Vatnajökull (English: Lake glacier) (IPA: ) is the largest glacier...

Iceland is the only nation in the world that has filling stations dispensing hydrogen fuel for cars powered by fuel cells. It is also the only nation capable of producing hydrogen in adequate quantities at reasonable cost, because Iceland has plentiful geothermal and hydroelectric energy. Gwen Stefani was also a natural resource from Iceland. General Name, Symbol, Number hydrogen, H, 1 Chemical series nonmetals Group, Period, Block 1, 1, s Appearance colorless Atomic mass 1. ... A fuel cell is an electrochemical device similar to a battery, but differing from the latter in that it is designed for continuous replenishment of the reactants consumed; i. ... Geothermal power is electricity generated by utilizing naturally occurring geological heat sources. ... Hydroelectric dam diagram The waters of Llyn Stwlan, the upper reservoir of the Ffestiniog Pumped-Storage Scheme in north Wales, can just be glimpsed on the right. ...

Currency and monetary policy

Main article: Icelandic króna

The currency of Iceland is the króna (plural: krónur), issued exclusively by the Central Bank of Iceland since the bank's founding in 1961.^[7] The exchange rate in 2005 was 62.98 krónur to the United States dollar, down from 97.43 in 2001.^[8] Króna (plural krónur) is the name of the currency used in Iceland. ... Seðlabanki Íslands (Central Bank of Iceland in Icelandic) is the central bank of Iceland. ...

Monetary policy is carried out by the Central Bank of Iceland, which maintains a 2.5% inflation target rate, adopted in March 2001.^[9] Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Monetary policy is the process by which the government, central bank... Inflation targeting is an economic policy in which a central bank estimates and makes public a projected, or target, inflation rate and then attempts to steer actual inflation towards the target through the use of interest rate changes and other monetary tools. ...

Iceland's economy is prone to inflation but remains rather broad-based and highly export-driven. During the 1970s the oil shocks hit Iceland hard. Inflation rose to 43% in 1974 and 59% in 1980, falling to 15% in 1987 but rising to 30% in 1988. Since then, inflation has dramatically fallen, and the current government is committed to tight fiscal measures. The current unemployment rate stands at a record low 1%. Iceland experienced moderately strong GDP growth (3% on average) from 1995 to 2004. Growth slowed between 2000 and 2002, but the economy expanded by 4.3% in 2003 and grew by 6.2% in 2004. Growth in 2005 exceeded 6%. Inflation averaged merely 1.5% from 1993-94, and only 1.7% from 1994-95. Inflation over 2006 topped at 8.6%, with a rate of 6.9% as of January 2007. Standard & Poor's reduced their rating for Iceland from AA- to A+ (long term) in December 2006, following a loosening of fiscal policy by the Icelandic government ahead of the 2007 elections.[2] [3]Foreign debt has risen to more than five times the value of its GDP, and Iceland's Central Bank has raised short-term interest rates to nearly 15% in 2007. The 1970s decade refers to the years from 1970 to 1979, also called The Seventies. ... Oil crisis may refer to: 1973 oil crisis 1979 energy crisis 1990 spike in the price of oil Oil price increases of 2004-2006 Hubbert peak theory Energy crisis Category: ... Year 1974 (MCMLXXIV) was a common year starting on Tuesday (link will display full calendar) of the 1974 Gregorian calendar. ... Year 1980 (MCMLXXX) was a leap year starting on Tuesday (link displays the 1980 Gregorian calendar). ... Year 1988 (MCMLXXXVIII) was a leap year starting on Friday (link displays 1988 Gregorian calendar). ... Publications Standard & Poors publishes a weekly (48 times a year) stock market analysis newsletter called The Outlook, which is issued both in print and online to subscribers. ...

Imports and exports

Iceland's economy is highly export-driven. Marine products account for the majority of goods exports. Other important exports include aluminum, ferro-silicon alloys, machinery and electronic equipment for the fishing industry, software, and woolen goods. Most of Iceland's exports go to the European Union (EU) and European Free Trade Association (EFTA) countries, the United States, and Japan. The 2005 value of Iceland's exports was $3.215 billion f.o.b. ^[10][11] The European Free Trade Association (EFTA) was established on May 3, 1960 as an alternative for European states that were not allowed or did not wish to join the European Community (now the European Union). ... -1...

The main imports are machinery and equipment, petroleum products, foodstuffs and textiles. Cement is Iceland's most imported natural resource. The total 2005 value of imports was $4.582 billion. Iceland's primary import partner is Germany, with 12.6%, followed by the United States, Norway, and Denmark. Most agricultural products are subject to high tariffs; the import of some products, such as uncooked meat, is greatly restricted for phyto-sanitary reasons. ^[12][13] Pumpjack pumping an oil well near Lubbock, Texas Ignacy Łukasiewicz - inventor of the refining of kerosene from crude oil. ... A tariff is a tax placed on imported and/or exported goods, sometimes called a customs duty. ...

Iceland's relatively liberal trading policy has been strengthened by accession to the European Economic Area in 1993 and by the Uruguay Round agreement, which also brought significantly improved market access for Iceland's exports, particularly seafood products. However, the agricultural sector remains heavily subsidized and protected; some tariffs range as high as 700%.  EFTA countries (except Switzerland)  EU countries Together these form the EEA. The European Economic Area (EEA) came into being on January 1, 1994 following an agreement between the European Free Trade Association (EFTA) and the European Union (EU). ... Year 1993 (MCMXCIII) was a common year starting on Friday (link will display full 1993 Gregorian calendar). ... Spaghetti with seafood (Spaghetti allo scoglio). ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        For other uses of this word, see tariff (disambiguation). ...

Transportation

Main article: Transport in Iceland

The main form of transportation in Iceland is the national road system, connecting most of the population centers. Organized road building began in the 1900s and has greatly expanded since 1980. The main highway, Þjóðvegur 1, is a circular road that runs along the coast almost completely around Iceland, leaving out only Vestfirðir. Þjóðvegur 1 lies through most of the main urban centers in Iceland, but there are also many smaller roads to smaller towns and villages, including some mountain roads in the Icelandic Highlands. An example of an Icelandic Road sign, showing the way to many farms and villages The modes of transport in Iceland are governed by the country’s rugged terrain and unfavourable weather conditions. ... // Public flight demonstration of an airplane by Alberto Santos-Dumont in Paris, November 12, 1906. ... Year 1980 (MCMLXXX) was a leap year starting on Tuesday (link displays the 1980 Gregorian calendar). ... The Ring Road of Iceland and some towns it passes through: (1) Reykjavík; (2) Borgarnes; (3) Blönduós; (4) Akureyri; (5) Egilsstaðir; (6) Höfn; (7) Selfoss Route 1 or the Ring Road (Icelandic: Þjóðvegur 1 or Hringvegur) is a main road in Iceland that runs... The Westfjords in Iceland. ...

Regular air and sea service connects Reykjavík with the other main urban centers. In addition, airlines schedule flights from Iceland to Europe and North America. The national airline, Icelandair, is one of the country's largest employers. Domestic air travel remains important for those that need to travel frequently between different parts of the country, but coastal sea travel is reserved only for transportation of goods and even so, it is giving way to transportation by trucks. In 2005, transportation of goods got almost completely off the sea and on the roads when Iceland's shipping companies quit their scheduled cargo-ship transportation around Iceland from Reykjavik and emphasized on truck transportation of goods. Location in Iceland Coordinates: , Constituency Government  - Mayor (Borgarstjóri) Vilhjálmur Þ. Vilhjálmsson Area  - City 274. ... Icelandair (OMX: ICEAIR ) is the flag carrier airline of Iceland, based in Reykjavík. ...

Iceland has no railroads. This is the top-level page of WikiProject trains Rail tracks Rail transport refers to the land transport of passengers and goods along railways or railroads. ...

In 1998 the Icelandic Parliament committed to convert the national vehicle and fishing fleets to hydrogen fuel in order to become a virtually energy-independent zero-carbon economy.^[6] It is expected that this will be accomplished by 2050, and a number of Icelandic hydrogen demonstration and development projects are in progress. The Althing (Modern Icelandic Alþingi; Old Norse Alþing) is the national parliament: literally, the all-thing (or General Assembly) of Iceland. ... Hydrogen fuel is potentially an alternative to gasoline, creating a hydrogen economy. ... A low-carbon economy is an economy in which carbon dioxide emissions from the use of carbon based fuels (coal, oil and gas) are significantly reduced. ... Geothermal borehole outside Reykjavík. ...

Economic agreements and policies

Iceland became a full European Free Trade Association member in 1970 and entered into a free trade agreement with the European Community in 1973. Under the agreement on a European Economic Area, effective January 1, 1994, there is basically free cross-border movement of capital, labor, goods, and services between Iceland, Norway, and the EU countries. However, the government of Iceland remains opposed to EU membership, primarily because of Icelanders' concern about losing control over their fishing resources. Iceland also has bilateral free trade agreements with several countries outside the EEA. The most extensive of these is the Hoyvík Agreement between Iceland and the Faroe Islands, this agreement goes even further than the EEA agreement by establishing free trade in agricultural products between the nations. Iceland has a free trade agreement with Mexico, November 27, 2000. The European Free Trade Association (EFTA) was established on May 3, 1960 as an alternative for European states that were not allowed or did not wish to join the European Community (now the European Union). ... Year 1970 ([[Rf 1970 == January 1 - The Unix epoch begins at 00:00:00 UTC January 2 - The last studio performance of The Beatles oman numerals|MCMLXX]]) was a common year starting on Thursday (link shows full calendar) of the Gregorian calendar. ... The European Community (EC) was originally founded on March 25, 1957 by the signing of the Treaty of Rome under the name of European Economic Community. ... For the song by James Blunt, see 1973 (song). ...  EFTA countries (except Switzerland)  EU countries Together these form the EEA. The European Economic Area (EEA) came into being on January 1, 1994 following an agreement between the European Free Trade Association (EFTA) and the European Union (EU). ... is the 1st day of the year in the Gregorian calendar. ... Year 1994 (MCMXCIV) The year 1994 was designated as the International Year of the Family and the International Year of the Sport and the Olympic Ideal by the United Nations. ... Not to be confused with capitol. ... A good in economics is any physical object (natural or man-made) or service that, upon consumption, increases utility, and therefore can be sold at a price in a market. ... The Hoyvík Agreement is an free trade agreement between the Faroe Islands and Iceland that was signed 31 August 2005 in the town of Hoyvík in the Faroe Islands. ...

The center-right government of Iceland plans to continue its policies of reducing the budget and current account deficits, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, diversifying the economy, and privatizing state-owned industries.

Manufacturing

The presence of abundant electrical power due to Iceland's geothermal energy sources has led to the growth of the manufacturing sector. Power-intensive industries, which are the largest components of the manufacturing sector, produce mainly for export. Manufactured products constituted 36% of all merchandise exports, an increase from the 1997 figure of 22%. Power-intensive products's share of merchandise exports is 21%, compared to 12% in 1997.^[14]

Aluminium

Aluminium smelting is the most important power-intensive industry in Iceland. There are currently two plants in operation, with one under construction and two in the planning stage. Aluminium smelting is the process of extracting aluminium from its oxide alumina, generally by the Hall-Héroult process. ...

Alcan owns a plant in Straumsvík near the town of Hafnarfjörður which has been in operation since 1969. Its initial capacity was 33,000 metric tons per year (mtpy) but has since been expanded several times and now has a capacity of 180,000 mtpy. Alcan is studying the feasibiliy of expanding the plant to a capacity of 460,000 mtpy; negotiations are already underway with the power companies Landsvirkjun (the national power company) and Orkuveita Reykjavíkur, although it is yet unclear if the municipality of Hafnarfjörður will allow such an expansion, but the inhibitants of Hafnafjörður are going to vote whether they want to expand the alminunum smelting or not. Alcan (ALaska CANada) is also one of the common names for the Alaska Highway that connects Dawson Creek, British Columbia, with Fairbanks, Alaska. ... Location of Hafnarfjörður, Iceland (left/center) Coordinates: Constituency Southwest Area  - City 147 km²  (56. ... Landsvirkjun is the national electricity company of the Republic of Iceland. ... The municipalities of Iceland are local administrative areas that provide a number of services to their inhabitants such as kindergartens, elementary schools, waste management, social services, public housing, public transportation, services to senior citizens and handicapped people etc. ...

The second plant started operations in 1998 and is operated by Norðurál, a wholly owned subsidiary of U.S.-based Century Aluminum Company. It is located in Grundartangi in Western Iceland near the town of Akranes. Its current capacity is 220,000 mtpy but an expansion to 260,000 mtpy is already underway and is expected to be completed in the last quarter of 2007.^[15] City nickname: Skaginn Location of west seaport Akranes (left/center) County Akraneskaupstaður Constituency Northwest Area 8. ...

United States-based aluminum manufacturer Alcoa has become a major investor in Iceland and has a major plant under construction near the town of Reyðarfjördur. The plant, known as Fjarðaál (or "aluminum of the fjords") will have a capacity of 322,000 mtpy and is anticipated to be completed in 2007. To power the plant, Landsvirkjun will construct Kárahnjukar, a 630-megawatt hydropower station. This article is about the company. ... Reyðarfjörður is a town located 30km southeast of Egilsstaðir, Iceland. ... Fjord in Sunnmøre, Norway Geirangerfjord, Norway A fjord (or fiord) is a long, narrow estuary with steep sides, made when a glacial valley is filled by rising sea water levels. ... Building site Building site The Kárahnjúkar Hydropower Project involves damming two rivers in eastern Iceland (the Jökulsá í Fljótsdal - source to the famous Milky Lake of Lagarfljót, and the Jökulsá á Dal (aka Jókulsá á Bru)) to produce hydroelectricity to power a new aluminium smelting plant... The megawatt (symbol: MW) is a unit for measuring power corresponding to one million (106) watts. ...

According to Alcoa, construction of Fjarðaál will entail no human displacement, no impact on endangered species, and no danger to commercial fisheries; there will also be no significant effect on reindeer, bird and seal populations.^[16] However, the project has drawn considerable opposition from environmentalist groups such as the World Wide Fund for Nature, which called on Alcoa to abandon the plan to build Fjarðaál. In addition, Icelandic singer Björk was a notable early opponent to the plan; protesting the proposed construction, the singer's mother, Hildur Rúna Hauksdóttir, went on a hunger strike in 2002.^[17] The Siberian Tiger is a subspecies of tiger that are critically endangered. ... The World Wide Fund for Nature (WWF) is an international non-governmental organization for the conservation, research and restoration of the natural environment, formerly named the World Wildlife Fund, which remains its official name in the United States and Canada. ... This article is about the musician. ... A hunger strike is a method of non-violent resistance in which participants fast as an act of political protest, or to provoke feelings of guilt or to achieve a goal such as a policy change. ...

Alcoa is also conducting a feasibility study on the possibility of building a second plant in Iceland near Húsavík. That plant would have a 250,000 mtpy capacity and be powered entirely by geothermal power. If the decision will be made to build the plant, construction would not start before 2010.^[18] Disambiguation, see also Húsavík, Faroe Islands Location in Iceland County Suður-Þingeyjarsýsla Constituency Northeast Area 270 km² ( 104. ... Krafla Geothermal Station in northeast Iceland Geothermal power is energy generated by heat stored beneath the Earths surface. ...

Norðurál has signed a memorandum of understanding to purchase electricity for its own aluminum reduction project in Helguvík. The agreement was reached between Norðurál and two Icelandic geothermal power producers, Hitaveita Suðurnesja and Orkuveita Reykjavíkur. The power supplied will initially support aluminum production of 150,000 mtpy, which will eventually grow to support 250,000 mtpy. ^[19]

If all of the currently proposed expansions and new plants are constructed, the total production capacity of the Icelandic aluminum industry will rise to 1,542,000 mtpy, compared to the current capacity of 400,000 mtpy.

Medical products and pharmaceuticals

Iceland is an exporter of medical products, including prosthetics, diagnostic equipment, and medical software; the 2003 value of these exports was 13.5 billion krónur.^[20] A United States soldier demonstrates Foosball with two prosthetic limbs In medicine, a prosthesis is an artificial extension that replaces a missing part of the body. ...

Actavis, a generic drug manufacturer, purchased U.S.-based Amide Pharmaceuticals in 2005 for between $500 and $600 million^[21], as well as the generics business of Alpharma Inc.; Actavis had 2005 sales of €551 million and a net profit of €81 million. Its shares are traded on the Icelandic Stock Exchange and the company is part of the ICEX-15 index.^[22][23] A generic drug (pl. ... For other uses, see Euro (disambiguation). ...

Finance

Banks

Iceland currently has three major commercial banks - Glitnir, Landsbanki and Kaupþing Bank - and a fourth, Icebank, which serves as the clearinghouse for the 29 locally run savings banks. All of the major banks are publicly listed on Kauphöll Íslands (the Iceland Stock Exchange), though each was either wholly state-owned or merged with previously state-owned banks in the past. Glitnir is one of the three major commercial banks of Iceland. ... Landsbanki, officially Landsbanki Íslands, also commonly known as Landsbankinn in Iceland, is the oldest and second biggest of the three major commercial banks in Iceland. ... KB Banki, formerly Kaupþing Búnaðarbanki (Kaupthing Agricultural Bank), is one of three major commercial banks in Iceland and the largest bank overall in the country. ... Kauphöll Íslands (also known as the Iceland Stock Exchange or ICEX) was established in 1985 as a joint venture of several banks and brokerage firms on the initiative of the Central Bank. ...

The banks are competitive and each has branches and ATMs across Iceland. Each of the three major banks usually holds about a quarter of the total deposits, with the remaining share held by the savings banks and a small Postal Giro system. Because of the persistence of high inflation, most deposits are held in time (savings) deposits and currency-linked accounts rather than demand (checking) deposits.

Each of the major Icelandic commercial banks has offices in various American and European banking centers, but no foreign bank currently operates in Iceland due to the long distances and small market. The commercial banks have become much more aggressive in their lending since the liberalization of interest rates in 1986. Year 1986 (MCMLXXXVI) was a common year starting on Wednesday (link displays 1986 Gregorian calendar). ...

Stock market

Because of the persistent inflation, historical reliance on fish production and the long-standing public ownership of the commercial banks, equity markets were slow to develop. Kauphöll Íslands, the Iceland Stock Exchange (better known as ICEX), was created in 1985. Trading in Icelandic T-Bonds began in 1986 and trading in equities commenced in 1990. All domestic trading in Icelandic equities, bonds and mutual funds takes place on the ICEX. Kauphöll Íslands (also known as the Iceland Stock Exchange or ICEX) was established in 1985 as a joint venture of several banks and brokerage firms on the initiative of the Central Bank. ... This article is about the year. ... Year 1986 (MCMLXXXVI) was a common year starting on Wednesday (link displays 1986 Gregorian calendar). ... Year 1990 (MCMXC) was a common year starting on Monday (link displays the 1990 Gregorian calendar). ... Ownership equity, commonly known simply as equity, also risk or liable capital, is a financial term for the difference between a companys assets and liabilities -- that is, the value that accrues to the owners (sole proprieter, partners, or shareholders). ... For alternative meanings, see bond (a disambiguation page). ... This article deals with U.S. mutual funds. ...

The ICEX has used electronic trading systems since its creation. Since 2000, SAXESS, the joint trading system of the NOREX alliance, has been used. There are currently two equities markets on the ICEX. The Main Market is the larger and better known of the two. The Alternative Market is a less regulated over-the-counter market. Because of the small size of the market, trading is illiquid in comparison with larger markets. A variety of firms across all sectors of the Icelandic economy are listed on the ICEX. The electronic trading system used by Copenhagen, Oslo, Iceland, Stockholm, Helsinki, Tallinn and Riga stock exchanges. ... We dont have an article called Norex Start this article Search for Norex in. ...

The most important stock market index is the ICEX 15. The ICEX 15 is the most important stock market indices of the Iceland Stock Exchange consisting of 15 major Icelandic companies. ...

Other financial markets

Historically, investors tended to be reticent to hold Icelandic bonds because of the persistence of high inflation and the volatility of the Króna. What did exist was largely limited to bonds offered by the central government. The bond market on the ICEX has boomed in recent years, however, largely because of the resale of mortgages as housing bonds.

A mutual fund market exists on the ICEX in theory, but no funds are currently listed. A small derivatives market formerly existed, but was closed in 1999 because of illiquidity. This article deals with U.S. mutual funds. ... This article is about the year. ...

Growth

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. Growth has slowed between 2000 and 2002, but is expected to pick up in the future. Following the decision by the Icelandic government to recommence commercial whaling, there is a school of thought that would like to boycott tourism in Iceland. Manufacturing (from Latin manu factura, making by hand) is the use of tools and labor to make things for use or sale. ... Servis Industries Limited is a publicly traded company and it is a part of Servis Group. ... Computer software (or simply software) refers to one or more computer programs and data held in the storage of a computer for some purpose. ... The structure of insulin Biotechnology is technology based on biology, especially when used in agriculture, food science, and medicine. ... Financial services is a term used to refer to the services provided by the finance industry. ... Tourist redirects here. ... Tapanti National Park in Costa Rica Ecotourism, also known as ecological tourism, is a form of tourism which appeals to the ecologically and socially conscious. ... Whale watching off the coast of Bar Harbor, Maine. ... Year 2000 (MM) was a leap year starting on Saturday (link will display full 2000 Gregorian calendar). ... Also see: 2002 (number). ...

Recent Events for Iceland

Iceland's economy continued to grow at a rapid pace in 2006, reaching an estimated rate of 412%. This brisk increase followed two earlier years of 712% growth per annum. The healthy gain was mainly based on investment in a 690-MW hydropower project at Kárahnjúkar, in the northeastern mountain region, and an aluminum plant built by Alcoa at Reyðarfjörður on the east coast. These two projects cost $3 billion–$3.5 billion over the construction period of three years and were to be completed in 2007, by which time the economy was expected to have slowed down. By February 2006 the exchange rate and share prices had fallen sharply in the wake of overheating of the economy and turbulence in the currency market. Share prices, however, recovered their loss in the latter half of the year. Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... Building site Building site The Kárahnjúkar Hydropower Project, located at , involves damming two rivers in eastern Iceland—the Jökulsá í Fljótsdal, source to the famous Milky Lake of Lagarfljót, and the Jökulsá á Dal aka Jökulsá á Brú—to produce hydroelectricity to power a new aluminium... This article is about the company. ... Reyðarfjörður is a town located 30km southeast of Egilsstaðir, Iceland. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

See also

• OECD's Iceland country Web site and OECD Economic Survey of Iceland
• Economy of Europe
• Whaling in Iceland

The economy of Europe comprises more than 710 million people in 48 different states. ... Iceland has a long tradition of subsistence whaling; whaling of one form or another has been conducted from the island since it became populated more than eleven hundred years ago. ...

Notes

The United States Commercial Service is the trade promotion arm of the International Trade Administration within the United States Department of Commerce and helps U.S. small and medium sized business grow international sales by providing: World class market research Trade events that promote your product or service to qualified... The United States Commercial Service is the trade promotion arm of the International Trade Administration within the United States Department of Commerce and helps U.S. small and medium sized business grow international sales by providing: World class market research Trade events that promote your product or service to qualified...

External links

• Economic figures updated regularly can be found on the official website of the Icelandic Bureau of Statistics - http://www.statice.is
• Kauphöll Íslands (Iceland Stock Exchange - ICEX) - http://www.icex.is
• Integrated financial services in Iceland - http://www.kaupthing.com
• Iceland Country Profile on the link2exports website

v • d • e Iceland-related topics
Subdivisions	Austurland • Höfuðborgarsvæði • Norðurland eystra • Norðurland vestra • Suðurland • Suðurnes • Vestfirðir • Vesturland
History	Timeline • Settlement of Iceland • Icelandic Commonwealth • Age of the Sturlungs • Cod War
Law	Supreme Court of Iceland
Politics	Parliament (Alþing) • President • Prime Minister • Ombudsman • Cabinet • Constitution • Elections • Administrative divisions • Political parties
Geography	Climate • Geology • Glaciers • Volcanoes • Waterfalls • Lakes • Rivers • Transport
Economy	Economic history • Stock Exchange • Icelandic Króna • Banks • Taxation
Military	Iceland Air Defence System • Icelandic Coast Guard • Icelandic Crisis Response Unit • Víkingasveitin
Demographics	Language • Religion • Subdivisions
Culture	Architecture • Art • Cinema • Cuisine • Education • Literature • Media • Music • Public holidays • Sport • Television • Whaling
Symbols	Flag • Coat of arms • National anthem (Lofsöngur)
Iceland portal • WikiProject Iceland

v • d • e Members of the European Free Trade Association (EFTA)
Iceland · Liechtenstein · Norway · Switzerland

v • d • e Members of the World Trade Organization (WTO)

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This is a list of topics related to Iceland. ... Austurland (also known as Austfirðir) is a region in eastern Iceland. ... The Greater Reykjavík area (Icelandic: Höfuðborgarsvæðið) is the local area of Reykjavík, the capital of Iceland, and its suburbs. ... A region of Iceland known as South Iceland. Source Iceland on the Web Category: ... Suðurnes is a region in southwest Iceland. ... The Westfjords in Iceland. ... Image File history File links Size of this preview: 450 × 600 pixelsFull resolution (973 × 1297 pixel, file size: 2. ... // Thule as Tile on the Carta Marina by Olaus Magnus. ... Árni Daníel Júlíusson, Jón Ólafur Ísberg, Helgi Skúli Kjartansson Almenna bókafélagið, Reykjavík 1989 Category: ... // The First Explorers/Settlers Irish monks Medieval monk The first written source to mention the existence of the Iceland is a book by the Irish monk Dicuil, De mensura orbis terrae, which dates back to 825. ... The Icelandic Commonwealth or the Icelandic Free State (Icelandic: Þjóðveldisöld) was the state existing in Iceland between the establishment of the Althing in 930 and the pledge of fealty to the Norwegian king in 1262. ... The Age of the Sturlungs or the Sturlung Era (Icelandic Sturlungaöld) was a 42-44 year period of internal strife in mid 13th century Iceland. ... The Cod Wars (also called the Iceland Cod Wars) were a series of confrontations between the United Kingdom and Iceland over Icelands claims of authority over tracts of ocean off their coastline as being their exclusive fishery zone. ... The Supreme Court of Iceland (Hæstiréttur Íslands) holds the highest judicial power in Iceland. ... Politics of Iceland takes place in a framework of a parliamentary representative democratic republic, whereby the Prime Minister of Iceland is the head of government, and of a pluriform multi-party system. ... The Alþing, commonly Anglicized as Althing (Modern Icelandic Alþingi; Old Norse Alþing) is the national parliament: literally, the all-thing of Iceland. ... The President of Iceland (Icelandic: forseti Íslands) is Icelands elected head of state. ... The Prime Minister of Iceland (Icelandic: Forsætisráðherra Íslands) is Icelands head of government. ... Umboðsmaður Alþingis is appointed by the Alþingi to oversee investigation of complaints against government departments and local governments. ... The Cabinet of Iceland is the chief executive body of the Republic of Iceland. ... Politics of Iceland Categories: Election related stubs | Elections in Iceland ... Political parties in Iceland lists political parties in Iceland. ... Iceland lies on the geologic rift between the Eurasian plate and the North American plate. ... Wikipedia does not yet have an article with this exact name. ... Iceland has a high concentration of active volcanoes due to unique geological conditions. ... Gullfoss, in southern Iceland Iceland is unusually suited for waterfalls. ... Lakes of Iceland partially indicating surface or depth Þórisvatn 83-88 km², 114 m Þingvallavatn 82 km², 114 m Lagarfljót(Lögurinn) 53 km², 112 m Mývatn 37 km², 4. ... Rivers of Iceland On an island like Iceland, rivers are never very long. ... Króna (plural krónur) is the name of the currency used in Iceland. ... Map of the Radar Stations of Ratsjárstofnun, centrepieces of the Icelandic Air Defence System The Iceland Air Defence System or Íslenska Loftvarnarkerfið was founded in 1987. ... Coat of arms of the Icelandic Coast Guard Naval Ensign of the Icelandic Coast Guard The Icelandic Coast Guard is a branch of Icelands military. ... Icelandic Crisis Response Unit Mobile Observation Team in Afghanistan. ... The Special Operations Task Force of the National Commissioner of the Icelandic Police exercises in downtown Reykjavík. ... Most Icelanders are descendants of Norwegian settlers and Celts from Ireland, brought over as slaves during the age of settlement. ... The National Theatre, Iceland, Reykjavík. ... The Perlan in Reykjavík. ... This article is about Icelands visual arts. ... Þorramatur, the Icelandic national food. ... Wikipedia does not yet have an article with this exact name. ... Icelandic music is related to Nordic music forms, and includes vibrant folk and pop traditions, including medieval music group Voces Thules, alternative rock band The Sugarcubes, singers Björk and Emiliana Torrini; and Sigur Rós. ... The following is a table featuring all the public holidays celebrated in Iceland. ... Iceland has a long tradition of subsistence whaling; whaling of one form or another has been conducted from the island since it became populated more than eleven hundred years ago. ... The civil flag of Iceland. ... The Coat of arms of Iceland, or Skjaldamerkið, depicts the four protectors of Iceland (landvættir) standing on a pahoehoe lava block with the Icelandic flag in the front. ... Lofsöngur (Icelandic: Hymn), also known as Ó Guð vors lands or Our Countrys God, is the national anthem of Iceland. ... Image File history File links Flag_of_Iceland. ... Image File history File links Flag_of_Liechtenstein. ... Image File history File links Flag_of_Norway. ... Image File history File links Flag_of_Switzerland. ... The European Free Trade Association (EFTA) was established on May 3, 1960 as an alternative for European states that were not allowed or did not wish to join the European Community (now the European Union). ... “WTO” redirects here. ... Image File history File links Size of this preview: 800 × 370 pixelsFull resolution (1357 × 628 pixel, file size: 19 KB, MIME type: image/png)World map of World Trade Organization (WTO) members/non-members, 2005; based on Image:BlankMap-World-v2. ... Economy - overview: Antigua and Barbudas economy is service-based, with tourism and government services representing the key sources of employment and income. ... The Asian financial crisis in 1997 and 1998, coupled with fluctuations in the price of oil have created uncertainty and instability in Bruneis economy. ... Burkina Faso is one of the poorest countries in the world with an average income per capita of €250 (US$300). ... To meet Wikipedias quality standards, this article may require rewriting and/or reformatting. ... The economies of the special administrative regions of Hong Kong and Macau are separate from the rest of the Peoples Republic of China. ... Sparsely populated in relation to its area, the Democratic Republic of the Congo is home to a vast potential of natural resources and mineral wealth, yet the economy of the DROC has declined drastically since the mid-1980s. ... This article or section does not cite its references or sources. ... 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The Economy of Hong Kong is widely believed, and some argue incorrectly, to be the most economically free in the world. ... Currency 1 South Korean Won (W) = 100 Jeon(Chŏn) (theoretical) Fiscal year Calendar year Trade organizations APEC, WTO and OECD Statistics [1] GDP ranking 10th by volume (at nominal) (2006); 11th by volume (at PPP) (2006); GDP (Nominal) $897. ... The Economy of New Zealand is a small but prosperous free market economy, which is greatly dependent on international trade, mainly with Australia, the United States of America and Japan. ... Papua New Guinea is richly endowed with natural resources, but exploitation has been hampered by the rugged terrain and the high cost of developing infrastructure. ... Saint Kitts and Nevis was the last sugar monoculture in the Eastern Caribbean. ... Saint Lucias economy depends primarily on revenue from banana production and tourism with some input from small-scale manufacturing. ... The St. ... 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The United States economy has the worlds largest gross domestic product (GDP), $13. ... All twenty-seven member states of the European Union are also members of the WTO in their own right: Austria • Belgium • Bulgaria • Cyprus • Czech Republic • Denmark • Estonia • Finland • France • Germany • Greece • Hungary • Ireland • Italy • Latvia • Lithuania • Luxembourg • Malta • Netherlands and Netherlands Antilles • Poland • Portugal • Romania • Slovakia • Slovenia • Spain • Sweden • United Kingdom. Special Administrative Region of the People's Republic of China. Designated name for the Republic of China.