ICELAND

Slowdown ahead as tourism falters

B2

MEDIUM RISK for entreprise

  • 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 USD24.188bn (World ranking 108, World Bank 2019)
Population 0.36mn (World ranking 175, World Bank 2019)
Form of state Parliamentary Republic
Head of government Katrin JAKOBSDOTTIR (Prime Minister)
Next elections 2021, 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)

Exports Rank Imports
Netherlands 26%
1
10% Germany
United Kingdom 11%
2
10% United States
Spain 10%
3
9% Norway
United States 8%
4
7% Netherlands
Germany 7%
5
7% China

Trade structure by product

(% of total)

Exports Rank Imports
Fish, crustaceans, molluscs and preparations thereof 40%
1
11% Road vehicles
Non-ferrous metals 36%
2
10% Petroleum, petroleum products and related materials
Iron and steel 3%
3
9% Electrical machinery, apparatus and appliances, n.e.s.
Feedstuff for animals (excluding unmilled cereals) 3%
4
8% Metalliferous ores and metal scrap
Animal oils and fats 2%
5
5% Other transport equipment

Contact

Euler Hermes

Economic Research Team

research@eulerhermes.com

Manfred Stamer

Senior Economist for Emerging Europe and the Middle East

manfred.stamer@eulerhermes.com

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