Icelandic business and economy
The Icelandic economy is the smallest within the OECD, generating GDP of 12.8 billion in 2005 in terms of Purchasing Power Parities (PPP). This was less than 1/1000 of the US economy, 1/20 of the Danish economy.
Iceland’s small population has not inhibited economic growth and prosperity. The country has all the characteristics of a modern welfare state, with GDP per capita measured in terms of amounted to 35.8 thousand USD (in 2005), the eight highest in the world.
This prosperity can be attributed to Iceland’s ability to utilise its comparative advantages by exploiting its abundant natural resources, both marine and land-based, as well as human capital.
Icelandic trade has many of the characteristics of small resource-based open economies, such as a high degree of openness, a large share of primary products and commodities and a small share of intra-industry trade. Nevertheless, the diversity of exports has increased significantly in recent years.
The mainstay of merchandise exports is still fish and other marine products, which in 2005 accounted for 57% of merchandise exports and 34% of total exports.
Export of services grew rapidly over the past decade, as the economy became more serviceoriented. Services now account for 39% of total export revenues.
Extractions from "The Economy of Iceland 2006"
Published by the Central Bank of Iceland.