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Economy of Iceland
 | This article needs to be updated. (September 2024) |
 | |
| Currency | Icelandic króna (ISK, kr) |
|---|---|
| Calendar year | |
Trade organisations | EFTA, EEA, OECD, WTO |
Country group | |
| Statistics | |
| Population |  400,000 (2024)[3] |
| GDP | |
| GDP rank | |
GDP growth |
|
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
| 9.8% (March 2023)[6] | |
Population below poverty line | |
| 23.7 low (2019)[9] | |
| |
 72 out of 100 points (2023)[11] (19th) | |
Labour force | |
Labour force by occupation |
|
| Unemployment | |
Average gross salary | 804,000 ISK / €5,500 month (2023) [16] |
| 578,000 ISK / €4,000 month (2023) | |
Main industries | tourism, fish processing; aluminum smelting; geothermal power, hydropower; medical/pharmaceutical products |
| External | |
| Exports | $9.775 billion (2021 est)[5] |
Export goods | fish and fish products (42%), aluminum (38%), agricultural products, medicinal and medical products, ferro-silicon (2015) |
Main export partners |
|
| Imports | $10.234 billion (2021 est.) |
Import goods | refined petroleum, aluminum oxide, carbon/graphite electronics, cars, packaged medicines (2019) |
Main import partners |
|
FDI stock | |
| $857 million (2017 est.)[5] | |
Gross external debt |  $21.7 billion (31 December 2017 est.)[5] |
| Public finances | |
| 40% of GDP (2017 est.)[5] | |
| +1.5% (of GDP) (2017 est.)[5] | |
| Revenues | 10.39 billion (2017 est.)[5] |
| Expenses | 10.02 billion (2017 est.)[5] |
| Economic aid | c. $40 million (0.24% GDP, 2015 budget) |
Moody's Investors Service[17]
| |
| $6.567 billion (31 December 2017 est.)[5] | |
All values, unless otherwise stated, are in US dollars. | |
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, which 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]
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 the 2008–2011 Icelandic 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.
- ^ "Groups and Aggregates Information". IMF.org. International Monetary Fund.
- ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
- ^ "Statistics Iceland: The population increased by 2.0% in 2021".
- ^ a b c d e "Report for Selected Countries and Subjects: April 2024". imf.org. International Monetary Fund.
- ^ a b c d e f g h i j k l m n "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 4 December 2019.
- ^ "Consumer price index". Statistics Iceland. Retrieved 1 April 2023.
- ^ Statistics Iceland[dead link], Retrieved 4 August 2015
- ^ "People at risk of poverty or social exclusion". ec.europa.eu/eurostat. Eurostat.
- ^ "Gini coefficient of equivalised disposable income - EU-SILC survey". ec.europa.eu/eurostat. Eurostat.
- ^ a b "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme.
- ^ "Corruption Perceptions Index". Transparency International. 30 January 2024. Archived from the original on 30 January 2024. Retrieved 15 July 2024.
- ^ "Labor force, total - Iceland". data.worldbank.org. World Bank. Retrieved 1 April 2023.
- ^ "Employment rate by sex, age group 20-64". ec.europa.eu/eurostat. Eurostat. Retrieved 20 July 2024.
- ^ "Unemployment by sex and age - monthly average". appsso.eurostat.ec.europa.eu. Eurostat. Retrieved 4 October 2020.
- ^ "Unemployment rate by age group". data.oecd.org. OECD. Retrieved 8 September 2020.
- ^ "Avarage salaty in Iceland". statice.is. Statistics Iceland. Retrieved 11 January 2025.
- ^ a b c Iceland Ministry of Finance and Economic Affairs, Retrieved 22 September 2022
- ^ Source: Statistics Iceland.
- ^ Cite error: The named reference
Tourismwas invoked but never defined (see the help page). - ^ "Economic Outlook: Caution, fragile!". Research - all news - Arionbanki. Archived from the original on 2018-05-15. Retrieved 2018-05-14.
- ^ Christopher Mims. "One Hot Island: Iceland's Renewable Geothermal Power". Scientific American. Retrieved 3 March 2015.
- ^ Iceland: One of the world´s most free economies Archived 2008-09-13 at the Wayback Machine, Invest in Iceland Agency
- ^ Human Development Index Archived July 2, 2015, at the Wayback Machine
- ^ "Human Development Report 2007/2008 - Inequality measures, ratio of richest 10% to poorest 10%". Hdrstats.undp.org. 2010-11-04. Archived from the original on 2009-02-12. Retrieved 2012-02-20.
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