Economy of Iceland

Economy of Iceland

Reykjavík
Currency	Icelandic króna (ISK) = 0.009 USD
Fiscal year	Calendar year
Trade organisations	EFTA, OECD, WTO
Statistics
GDP	$20 billion (2016, nominal)
GDP rank	111th (nominal) / 145th (PPP)
GDP growth	1.9% (2014)
GDP per capita	$58,000(2016, nominal),$48,000(2016,PPP) 14th (nominal) / 22nd (PPP)
GDP by sector	services: 71.7% industry: 22.4% agriculture: 6.0% (2014 est.)
Inflation (CPI)	1.9% (Change in past 12 months)
Population below poverty line	8% - income below 1,200€/ month (2015)
Gini coefficient	.23 (2014)
Labour force	0.2 million (April 2015)
Labour force by occupation	services: 73% industry: 22.2% agriculture: 4.8% (2008)
Unemployment	2.9% (June 2015)
Average gross salary	511,000ISK/ 4,500USD/ month
Average net salary	367,000ISK/ 3,200USD/ month
Main industries	Fish processing, aluminum smelting, ferrosilicon production, geothermal power, hydropower, tourism
Ease-of-doing-business rank	20th (2017)
External
Exports	$5.1 billion (2012 est.)
Export goods	Fish and fish products: 40%, aluminum, animal products, ferrosilicon, diatomite
Main export partners	Netherlands 37.5%  United Kingdom 14.4%  Spain 9.7%  Germany 7.7%  France 6.4% (2014)
Imports	$4.6 billion (2013 est.)
Import goods	Machinery and equipment, petroleum products, foodstuffs, textiles
Main import partners	Norway 15.78%  United States 9.59%  Germany 8.46%  China 8.20%  Brazil 7.66%  Denmark 6.39%  Netherlands 5.12%  United Kingdom 4.57%  Sweden 4.19% other 30.05%
Public finances
Public debt	$16.3 billion (31 December 2012 est.)
Revenues	$6 billion (2012 est.)
Expenses	$6 billion (2012 est.)
Economic aid	~$20 million (0.24% GDP, 2009 budget)
Credit rating	Moody's Investors Service Baa2 (Foreign) Baa1 (Domestic) Outlook: Stable Standard & Poor's BBB- (Foreign) BBB- (Domestic) Outlook: Positive Fitch BBB (Foreign) BBB+ (Domestic) Outlook: Positive
Foreign reserves	$9 billion (31 December 2012 est.)
Main data source: CIA World Fact Book 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$12.3bn. With a population of 321,000, this is $38,000 per capita, based on purchasing power parity (PPP) estimates. The financial crisis of 2007–2010 produced a decline in GDP and employment, although the magnitude of this decline remains to be determined.

Iceland has a mixed economy with high levels of free trade and government intervention. However, government consumption is less than other Nordic countries. Geothermal power is the primary source of home and industrial energy in Iceland.

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 as well as civil freedoms. In 2007, Iceland topped the list of nations ranked by Human Development Index and was one of the most egalitarian, according to the calculation provided by the Gini coefficient.

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 a sweeping financial crisis. Iceland had to obtain emergency funding from the International Monetary Fund and a range of European countries in November 2008.

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 only 0.7% of Iceland's surface area is arable, since the island's terrain is mostly mountainous and volcanic.