| Economy | Iceland |
 = Fields  = World Records  = Dictionary  = Bar graph  = Distribution map  = Fields History  = Definitions |
Economy - overview:
|
Iceland's Scandinavian-type social-market economy combines a capitalist structure and free-market principles with an extensive welfare system, including generous housing subsidies. Prior to the 2008 crisis, Iceland had achieved high growth, low unemployment, and a remarkably even distribution of income. Government economic priorities have included stabilizing the krona, reducing the current account deficit, containing inflation, restructuring the financial sector, and diversifying the economy. The economy depends heavily on the fishing industry, which provides 40% of export earnings and employs 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, with new developments in software production, biotechnology, and tourism. Abundant geothermal power has attracted substantial foreign investment in the aluminum and hydropower sectors and boosted economic growth, although the financial crisis has put several investment projects on hold. Much of Iceland's economic growth in recent years came as the result of a boom in domestic demand following the rapid expansion of the country's financial sector. Domestic banks expanded aggressively in foreign markets, and consumers and businesses borrowed heavily in foreign-currency loans, following the privatization of the 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 negotiated over $10 billion in loans from the IMF and other countries to stabilize its currency and financial sector, and to guarantee foreign deposits in Icelandic banks. A protracted recession is expected in 2009 and 2010 with GDP likely to contract and unemployment likely to surpass 10%. The collapse of the financial system has led to a major shift in opinion in favor of joining the EU and adopting the euro. Previous opposition to this move stemmed from Icelanders' concern about losing control of their fishing resources. Iceland's coalition government collapsed in January 2009 following protests over growing joblessness and losses to personal savings. |
GDP (purchasing power parity):
|
$12.15 billion (2008 est.)
$12.59 billion (2007)
$12.01 billion (2006)
note: data are in 2008 US dollars |
GDP - per capita (PPP):
|
$39,900 (2008 est.)
$41,700 (2007 est.)
$40,100 (2006 est.)
note: data are in 2008 US dollars |
GDP (official exchange rate):
|
$19.02 billion (2008 est.) |
GDP - real growth rate:
|
-3.5% (2008 est.)
4.9% (2007 est.)
4.4% (2006 est.) |
GDP - composition by sector:
|
agriculture: 5%
industry: 26.5%
services: 68.5% (2008 est.) |
Investment (gross fixed):
|
21.9% of GDP (2008 est.) |
Population below poverty line:
|
NA% |
Household income or consumption by percentage share:
|
lowest 10%: NA%
highest 10%: NA% |
Distribution of family income - Gini index:
|
25 (2005) |
Inflation rate (consumer prices):
|
13.4% (2008 est.) |
Central bank discount rate:
|
15.25% (31 December 2007) |
Commercial bank prime lending rate:
|
19.29% (31 December 2007) |
Stock of money:
|
$6.64 billion (31 December 2007) |
Stock of money - per capita:
|
21,651 USD per capita |
Stock of quasi money:
|
$15.05 billion (31 December 2006) |
Stock of quasi money - per capita:
|
49,072 USD per capita |
Stock of domestic credit:
|
$49.67 billion (31 December 2006) |
Stock of domestic credit - per capita:
|
161,953 USD per capita |
Labor force:
|
166,000 (2008 est.) |
Labor force participation rate:
|
54.13 % of population |
Labor force - by occupation:
|
agriculture: 3%
industry: 19%
services: 78% (2007) |
Unemployment rate:
|
1.6%
note: this figure climbed to 9.4% as of February 2009 (2008 est.) |
Budget:
|
revenues: $7.582 billion
expenditures: $7.159 billion (2008 est.) |
Budget revenues per capita:
|
24,722 USD per capita |
Public debt:
|
23% of GDP (2008 est.) |
Industries:
|
fish processing; aluminum smelting, ferrosilicon production; geothermal power, tourism |
Industrial production growth rate:
|
5.5% (2008 est.) |
Electricity - production:
|
11.71 billion kWh (2007 est.) |
Electricity - production per capita:
|
38,182 kWh per capita |
Electricity - consumption:
|
9.312 billion kWh (2006 est.) |
Electricity - consumption - per capita:
|
30,363 kWh per capita |
Electricity - exports:
|
0 kWh (2007 est.) |
Electricity - imports:
|
0 kWh (2007 est.) |
Oil - production:
|
0 bbl/day (2007 est.) |
Oil - production per capita:
|
void |
Oil - consumption:
|
21,120 bbl/day (2007 est.) |
Oil - consumption - per capita:
|
25.14 bbl/year per capita |
Oil - exports:
|
860.8 bbl/day (2005) |
Oil - imports:
|
17,450 bbl/day (2005) |
Oil - proved reserves:
|
0 bbl (1 January 2006 est.) |
Natural gas - production:
|
0 cu m (2007 est.) |
Natural gas - production per capita:
|
void |
Natural gas - consumption:
|
0 cu m (2007 est.) |
Natural gas - consumption - per capita:
|
void |
Natural gas - exports:
|
0 cu m (2007 est.) |
Natural gas - imports:
|
0 cu m (2007 est.) |
Natural gas - proved reserves:
|
0 cu m (1 January 2006 est.) |
Agriculture - products:
|
potatoes, green vegetables; mutton, dairy products; fish |
Current account balance:
|
-$3.257 billion (2008 est.) |
Current account balance - per capita:
|
-10,619 USD per capita |
Exports:
|
$6.846 billion f.o.b. (2008 est.) |
Exports per capita:
|
22,322 USD per capita |
Exports - commodities:
|
fish and fish products 70%, aluminum, animal products, ferrosilicon, diatomite |
Exports - partners:
|
Netherlands 21.3%, Germany 13.3%, UK 13.2%, Ireland 7.7%, US 7.3%, Spain 4.6%, Japan 4.3% (2007) |
Imports:
|
$6.543 billion f.o.b. (2008 est.) |
Imports per capita:
|
21,334 USD per capita |
Imports - commodities:
|
machinery and equipment, petroleum products, foodstuffs, textiles |
Imports - partners:
|
US 13.7%, Germany 12.2%, Sweden 10.2%, Denmark 7.5%, Netherlands 5.7%, UK 5.4%, China 5.1%, Norway 4.6% (2007) |
Reserves of foreign exchange and gold:
|
$2.5 billion (31 December 2008 est.) |
Reserves of foreign exchange and gold - per capita:
|
8,152 USD per capita |
Debt - external:
|
$3.073 billion (2002) |
Debt - external - per capita:
|
10,020 USD per capita |
Stock of direct foreign investment - at home:
|
$NA |
Stock of direct foreign investment - at home - per capita:
|
void |
Stock of direct foreign investment - abroad:
|
$NA |
Stock of direct foreign investment - abroad - per capita:
|
void |
Market value of publicly traded shares:
|
$40.56 billion (31 December 2007) |
Market value of publicly traded shares - per capita:
|
132,250 USD per capita |
Economic aid - donor:
|
$6.7 million (2004) |
Economic aid - recipient:
|
void |
Economic aid - recipient per capita:
|
void |
Currency (code):
|
Icelandic krona (ISK) |
Exchange rates:
|
Icelandic kronur (ISK) per US dollar - 85.619 (2008 est.), 63.391 (2007), 70.195 (2006), 62.982 (2005), 70.192 (2004) |
Fiscal year:
|
calendar year |
|
= Fields = World Records = Dictionary = Bar graph = Distribution map = Fields History = Definitions |
|
Home 
Geographic Names
Chiefs of State
Intl. Organizations
Intl. Environmental Agree.
Other References
