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Iceland Economy 2016
https://allcountries.org/world_fact_book_2016/iceland/iceland_economy.html
SOURCE: 2016 CIA WORLD FACTBOOK AND OTHER SOURCES











Iceland Economy 2016
SOURCE: 2016 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on February 11, 2016

Economy - overview:
Iceland's Scandinavian-type social-market economy combines a capitalist structure and free-market principles with an extensive welfare system. Prior to the 2008 crisis, Iceland had achieved high growth, low unemployment, and a remarkably even distribution of income. The economy depends heavily on the fishing industry, which provides 40% of 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.Iceland's economy has been diversifying into manufacturing and service industries in the last decade, particularly within the fields of software production, biotechnology, and tourism. 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. 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.Domestic banks expanded aggressively in foreign markets, and consumers and businesses borrowed heavily in foreign currencies, following the privatization of the banking sector in the early 2000s. 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. 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. Three new banks were established to take over the domestic assets of the collapsed banks. Two of them have foreign majority ownership, while the State holds a majority of the shares of the third. Iceland began making payments to the UK, the Netherlands, and other claimants in late 2011 following Iceland's Supreme Court ruling that upheld 2008 emergency legislation that gives priority to depositors for compensation from failed Icelandic banks. British and Dutch authorities claim Iceland owes approximately $6.5 billion for compensating British and Dutch citizens who lost deposits in Icesave savings accounts when parent bank Landsbanki failed in 2008.Iceland’s financial woes prompted an initial increase in public support to join the EU and the Eurozone, with accession negotiations beginning in July 2010. However, the election of a new center-right government and declining public support amidst the ongoing Eurozone crisis led to the suspension of negotiations in mid-2013.

GDP (purchasing power parity):
$15.01 billion (2015 est.) $14.48 billion (2014 est.) $14.22 billion (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 153
[see also: GDP country ranks ]

GDP (official exchange rate):
$16.74 billion (2015 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
3.7% (2015 est.) 1.8% (2014 est.) 3.9% (2013 est.)
country comparison to the world: 69
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$46,600 (2015 est.) $44,500 (2014 est.) $43,700 (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 30
[see also: GDP - per capita country ranks ]

Gross national saving:
23.4% of GDP (2015 est.) 20.2% of GDP (2014 est.) 20.8% of GDP (2013 est.)
country comparison to the world: 60
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 52.1%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 23.2%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 18.7%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 54.8%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -48.8% (2015 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 5.8%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 20.9%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 73.3% (2015 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

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

Industrial production growth rate:
1.5% (2015 est.)
country comparison to the world: 130
[see also: Industrial production growth rate country ranks ]

Labor force:
190,500 (2015 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:
3.8% (2015 est.) 3.6% (2014 est.)
country comparison to the world: 33
[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: 128
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $6.914 billion
[see also: Budget revenues country ranks ]
expenditures: $6.885 billion (2015 est.)
[see also: Budget expenditures country ranks ]

Taxes and other revenues:
41.3% of GDP (2015 est.)
country comparison to the world: 35
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
0.2% of GDP (2015 est.)
country comparison to the world: 24
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
81.9% of GDP (2015 est.) 85.4% of GDP (2014 est.)
country comparison to the world: 31
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
1.7% (2015 est.) 2% (2014 est.)
country comparison to the world: 97
[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: 72
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
7.4% (31 December 2015 est.) 7.74% (31 December 2014 est.)
country comparison to the world: 117
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$3.262 billion (31 December 2015 est.) $3.213 billion (31 December 2014 est.)
country comparison to the world: 114
[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:
$19.37 billion (31 December 2015 est.) $18.36 billion (31 December 2014 est.)
country comparison to the world: 86
[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) $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:
$772 million (2015 est.) $581 million (2014 est.)
country comparison to the world: 41
[see also: Current account balance country ranks ]

Exports:
$4.4 billion (2015 est.) $4.848 billion (2014 est.)
country comparison to the world: 114
[see also: Exports country ranks ]

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

Exports - partners:
Netherlands 29.2%, UK 11.2%, Spain 7.4%, Germany 6%, France 5%, US 4.9%, Russia 4.9%, Norway 4.5% (2014)

Imports:
$4.577 billion (2015 est.) $4.954 billion (2014 est.)
country comparison to the world: 127
[see also: Imports country ranks ]

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

Imports - partners:
Norway 14.7%, US 10.1%, Germany 7.6%, Denmark 7.6%, China 7.4%, Netherlands 6.6%, UK 6%, Brazil 5.4% (2014)

Reserves of foreign exchange and gold:
$5.289 billion (31 December 2015 est.) $4.176 billion (31 December 2014 est.)
country comparison to the world: 92
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$97.87 billion (31 December 2014 est.) $107.5 billion (31 December 2013 est.)
country comparison to the world: 52
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$NA $9.2 billion (31 December 2008 est.)
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$NA (31 December 2011) $8.8 billion (31 December 2008)
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Icelandic kronur (ISK) per US dollar - 130.1 (2015 est.) 116.77 (2014 est.) 116.77 (2013 est.) 125.08 (2012 est.) 115.95 (2011 est.)


NOTE: The information regarding Iceland on this page is re-published from the 2016 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iceland Economy 2016 information contained here. All suggestions for corrections of any errors about Iceland Economy 2016 should be addressed to the CIA.




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