OECD Economic Surveys: Iceland 2019

Abstract

The economic situation and policies of Iceland were reviewed at a meeting of the Economic and Development Review Committee on 13 June 2019. The draft was revised in the light of the discussions and given final approval as the agreed report of the whole Committee on 12 July 2019.

The Secretariat’s draft report was prepared for the Committee by Hansjoerg Bloechliger and Vassiliki Koutsogeorgopoulou under the supervision of Piritta Sorsa. The draft has benefitted from consultancy work by Olga Rastrigina and Daniele Pacifico  and valuable background research by Laura Brogi.

Statistical research was provided by Anne Legendre. Assa Fofana formatted and produced the layout.

The previous Survey of Iceland was issued in June 2017.

Basic statistics of Iceland, 2018

(Numbers in parentheses refer to the OECD average)

LAND, PEOPLE AND ELECTORAL CYCLE
Population (million)		0.4		Population density per km²	3.5	(37.8)
Under 15 (%)		20.0	(17.8)	Life expectancy (years, 2017)	82.2	(80.3)
Over 65 (%)		14.8	(17.1)	Men (2017)	80.4	(77.7)
Foreign-born (%, 2017)		13.5		Women (2017)	84.1	(83.0)
Latest 5-year average growth (%)		1.8	(0.6)	Latest general election	October 2017
ECONOMY
Gross domestic product (GDP)				Value added shares (%, 2016)
In current prices (billion USD)		26.1		Primary sector	5.2	(2.4)
In current prices (billion ISK)		2810.0		Industry including construction	22.3	(27.5)
Latest 5-year average real growth (%)		4.5	(2.3)	Services	72.5	(70.1)
Per capita (000 USD PPP, 2017)		57.5	(46.4)
GENERAL GOVERNMENT
Per cent of GDP
Expenditure (OECD: 2017)		41.7	(40.3)	Gross financial debt (OECD: 2017)	61.8	(112.4)
Revenue (OECD: 2017)		42.8	(38.1)	Net financial debt (OECD: 2017)	6.5	(69.6)
EXTERNAL ACCOUNTS
Exchange rate (ISK per USD)		107.79		Main exports (% of merchandise exports)
PPP exchange rate (USA = 1)		138.33		Manufactured goods	43.7
In per cent of GDP				Food and live animals	41.9
Exports of goods and services		47.1	(56.1)	Machinery and transport equipment.	4.5
Imports of goods and services		44.1	(52.0)	Main imports (% of total goods imports)
Current account balance		2.9	(0.3)	Machinery and transport equipment	34.3
Net international investment position		9.1		Mineral fuels, lubricants and related materials	14.4
				Crude materials, inedible, except fuels	12.4
LABOUR MARKET, SKILLS AND INNOVATION
Employment rate (aged 15 and over %)		85.1	(68.4)	Unemployment rate, Labour Force Survey (age 15 and over) (%)	2.7	(5.3)
Men		87.5	(76.0)	Youth (age 15-24, %)	6.0	(11.1)
Women		82.5	(60.9)	Long-term unemployed (1 year and over, %, 2017)	0.2	(1.7))
Participation rate for 15-64 year-olds (% 2017)		88.3	(72.1)	Tertiary educ. Attain ( aged 25-64 year-olds (%,2017)	42.4	(36.9)
Average hours worked per year (2017)		1858	(1 746)	Gross domestic expenditure on R&D (% of GDP, 2016)	2.1	(2.5)
ENVIRONMENT
Total primary energy supply per capita (toe, 2017)		16.8	(4.1)	CO2 emissions from fuel combustion per capita (tonnes, 2016)	6.3	(9.0)
Renewables (%, 2017)		88.5	(10.2)	Water abstractions per capita (1 000 m³, 2014)	4.4
Exposure to air pollution (more than 10 μg/m3 of PM2.5, % of population)		5.7	(58.7)	Municipal waste per capita (tonnes, 2016, OECD; 2017)	0.7	(0.5)
SOCIETY
Income inequality (Gini coefficient, 2015)c		0.255	(0.315)	Education outcomes (PISA score, 2015)
Relative poverty rate (%, 2015)		5.40	(11.8)	Reading	482	(492)
Median gross household income (000 USD PPP, 2015)		30.3	(23.3)	Mathematics	488	(490)
Public and private spending (% of GDP)				Science	473	(493)
Health care (2017)		8.5	(8.8)	Share of women in parliament (%)	38.1	(29.7)
Pensions (2015)		9.2	(9.1)	Net official development assistance (% of GNI)	0.3	(0.4)
Education (public, 2017)		7.6	(4.5)

The year is indicated in brackets if it deviates from the year in the main title of this table.

** Where the OECD aggregate is not provided in the source database, a simple OECD average of latest available data is calculated where data exist for at least 80% of member countries.

Source: Calculations based on data extracted from databases of the following organisations: OECD, International Energy Agency, International Labour Organisation, International Monetary Fund, World Bank.