| Economy | Iceland |
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Economy - overview:
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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 7% 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. 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. 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 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 6.9% in 2009, and unemployment peaked at 9.4% in February 2009. GDP rose 2.5% in 2011 and unemployment declined to less than 7%. 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. Iceland owes British and Dutch authorities approximately $5.5 billion for compensating British and Dutch citizens who lost deposits in Icesave when parent bank Landsbanki failed in 2008. Iceland began accession negotiations with the EU in July 2010; however, public support has dropped substantially because of concern about losing control over fishing resources and in reaction to worries over the ongoing Eurozone crisis. |
GDP (purchasing power parity):
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$12.33 billion (2011 est.)
$12.04 billion (2010 est.)
$12.55 billion (2009 est.)
note: data are in 2011 US dollars |
GDP - per capita (PPP):
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$38,000 (2011 est.)
$37,500 (2010 est.)
$39,200 (2009 est.)
note: data are in 2011 US dollars |
GDP (official exchange rate):
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$14.1 billion (2011 est.) |
GDP - real growth rate:
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2.4% (2011 est.)
-4% (2010)
-6.8% (2009) |
GDP - composition by sector:
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agriculture: 5.4%
industry: 24.8%
services: 69.8% (2011 est.) |
Investment (gross fixed):
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13.5% of GDP (2011 est.) |
Population below poverty line:
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NA% |
Household income or consumption by percentage share:
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lowest 10%: NA%
highest 10%: NA% |
Distribution of family income - Gini index:
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28 (2006)
25 (2005) |
Inflation rate (consumer prices):
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4.5% (2011 est.)
5.4% (2010 est.) |
Central bank discount rate:
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5.75% (31 December 2010 est.)
14.55% (31 December 2009 est.) |
Commercial bank prime lending rate:
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7% (31 December 2011 est.)
10.242% (31 December 2010 est.) |
Stock of money:
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$4.83 billion (30 September 2009)
$4.71 billion (31 December 2008) |
Stock of money - per capita:
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15,528 USD per capita |
Stock of quasi money:
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$3.44 billion (31 December 2008)
$3.55 billion (31 December 2008) |
Stock of quasi money - per capita:
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11,060 USD per capita |
Stock of domestic credit:
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$67.57 billion (31 December 2011 est.)
$69.71 billion (31 December 2010 est.) |
Stock of domestic credit - per capita:
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217,227 USD per capita |
Stock of narrow money:
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$5.68 billion (31 December 2011 est.)
$5.276 billion (31 December 2010 est.) |
Stock of broad money:
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$28.75 billion (31 December 2010 est.)
$30.39 billion (31 December 2010 est.) |
Labor force:
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183,200 (2011 est.) |
Labor force participation rate:
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58.90 % of population |
Labor force - by occupation:
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agriculture: 4.8%
industry: 22.2%
services: 73% (2008) |
Unemployment rate:
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6.9% (2011 est.)
8.1% (2010) |
Unemployment, youth ages 15-24:
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total: 16%
male: 19.9%
female: 12% (2009) |
Budget:
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revenues: $6.011 billion
expenditures: $6.862 billion (2011 est.) |
Budget revenues per capita:
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19,325 USD per capita |
Taxes and other revenues:
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42.6% of GDP (2011 est.) |
Budget surplus (+) or deficit (-):
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-6% of GDP (2011 est.) |
Public debt:
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130.1% of GDP (2011 est.)
126.3% of GDP (2010 est.) |
Industries:
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fish processing; aluminum smelting, ferrosilicon production; geothermal power, hydropower, tourism |
Industrial production growth rate:
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3% (2011 est.) |
Electricity - production:
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16.48 billion kWh (2009 est.) |
Electricity - production per capita:
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52,981 kWh per capita |
Electricity - consumption:
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16.48 billion kWh (2009 est.) |
Electricity - consumption - per capita:
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52,981 kWh per capita |
Electricity - exports:
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0 kWh (2009 est.) |
Electricity - imports:
|
0 kWh (2009 est.) |
Oil - production:
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0 bbl/day (2010 est.) |
Oil - production per capita:
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void |
Oil - consumption:
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17,430 bbl/day (2010 est.) |
Oil - consumption - per capita:
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20.45 bbl/year per capita |
Oil - exports:
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1,209 bbl/day (2009 est.) |
Oil - imports:
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15,530 bbl/day (2009 est.) |
Oil - proved reserves:
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0 bbl (1 January 2011 est.) |
Natural gas - production:
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0 cu m (2010 est.) |
Natural gas - production per capita:
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void |
Natural gas - consumption:
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0 cu m (2010 est.) |
Natural gas - consumption - per capita:
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void |
Natural gas - exports:
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0 cu m (2010 est.) |
Natural gas - imports:
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0 cu m (2010 est.) |
Natural gas - proved reserves:
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0 cu m (1 January 2011 est.) |
Agriculture - products:
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potatoes, green vegetables; mutton, chicken, pork, beef, dairy products; fish |
Current account balance:
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-$900 million (2011 est.)
-$1.418 billion (2010 est.) |
Current account balance - per capita:
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-2,893 USD per capita |
Exports:
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$5.3 billion (2011 est.)
$4.603 billion (2010 est.) |
Exports per capita:
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17,039 USD per capita |
Exports - commodities:
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fish and fish products 40%, aluminum, animal products, ferrosilicon, diatomite |
Exports - partners:
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Netherlands 33.9%, Germany 14.1%, UK 10.1%, Spain 4.7%, US 4.5%, Norway 4.3% (2010) |
Imports:
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$4.495 billion (2011 est.)
$3.621 billion (2010 est.) |
Imports per capita:
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14,451 USD per capita |
Imports - commodities:
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machinery and equipment, petroleum products, foodstuffs, textiles |
Imports - partners:
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Norway 9%, Brazil 8.7%, Netherlands 8.5%, US 8.1%, Germany 7.5%, Denmark 7%, China 6%, Finland 5.4%, Sweden 5.2%, UK 5.1% (2010) |
Reserves of foreign exchange and gold:
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$4.457 billion (31 December 2011 est.)
$5.79 billion (31 December 2010 est.) |
Reserves of foreign exchange and gold - per capita:
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14,329 USD per capita |
Debt - external:
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$124.5 billion (30 June 2011)
$3.073 billion |
Debt - external - per capita:
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400,247 USD per capita |
Stock of direct foreign investment - at home:
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$NA (31 December 2010)
$9.2 billion (31 December 2008) |
Stock of direct foreign investment - at home - per capita:
|
void |
Stock of direct foreign investment - abroad:
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$NA
$8.8 billion (31 December 2008) |
Stock of direct foreign investment - abroad - per capita:
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28,291 USD per capita |
Market value of publicly traded shares:
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$1.996 billion (31 December 2010)
$1.128 billion (31 December 2009)
$5.557 billion (31 December 2008) |
Market value of publicly traded shares - per capita:
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6,417 USD per capita |
Currency (code):
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Icelandic krona (ISK) |
Exchange rates:
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Icelandic kronur (ISK) per US dollar -
117.7 (2011 est.)
122.24 (2010 est.)
123.64 (2009)
85.619 (2008)
63.391 (2007) |
Fiscal year:
|
calendar year |
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