Covid-19 has hit the export-dependent economy

B2

MEDIUM RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD21.72bn (World ranking 110, World Bank 2020)
Population 0.366mn (World ranking 175, World Bank 2020)
Form of state Parliamentary Republic
Head of government Katrin JAKOBSDOTTIR (Prime Minister)
Next elections September 2025, parliamentary elections
  • Highly developed advanced economy with a per capita income of more than USD70,000
  • Prudent macroeconomic policies
  • Sufficient foreign exchange reserves
  • Strong structural business environment
  • Government instability after the 2008-2009 financial crisis
  • Unfavorable economic structure; export concentration in fish and aluminum
  • Vulnerability to economic overheating and large financial shocks
  • Still elevated level of external debt
  • Exchange rate volatility

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
Netherlands 20.3%
1
9.0% Germany
Spain 17.3%
2
8.8% Norway
United-Kingdom 11.1%
3
8.4% China
France 8.1%
4
7.7% Netherlands
United States 7.6%
5
7.2% Denmark

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Fish, crustaceans, molluscs and preparations thereof 44.3%
1
9.2% Road vehicles
Non-ferrous metals 35.0%
2
9.1% Electrical machinery and equipment
Iron and steel 2.7%
3
8.1% Metalliferous ores and metal scrap
Feedstuff for animals (excluding unmilled cereals) 2.6%
4
6.2% Petroleum, petroleum products and related materials
Animal oils and fats 2.1%
5
3.8% Miscellaneous manufactured articles, n.e.s.
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