The backbone of any country is its economy. And besides the geographical factors, what makes a country known to the world is its economy. The stronger the economy, the more attention you draw from the world. So let us move a step ahead and know the money matters concerning Iceland and its trade and industries better.
Iceland is known to all of us as a small and beautiful country. But though it is so, it is definitely not small in terms of its development and progress. It is indeed quite a developed country. The proof for this is its per capita GDP of $38,100. This GDP is amongst one of the highest in the world. The economy of Iceland is a mixed economy i.e. though it is chiefly capitalist, it supports the concept of a welfare state too.
The standard of living in Iceland is very high and is comparable to most of the European nations. You will generally not come across too much of unevenness in the Icelandic economy. People are generally well off and well to do and unemployment is certainly not a major concern here.
Privatization is quite rampant in Iceland, with only a few commercial banks and energy production units, still under the government control. The 3 big banks of Iceland include Glitnir, Landsbanki and Kaupþing Bank. The Icelandic stock exchange is called as Kauphöll Íslands and its currency the Icelandic Krona (ISK).
The most significant industry in Iceland is that of fishing. A major part of the Icelandic income is generated from the fishing industry and the export of fish products. As a result, Iceland is greatly affected by any kind of fluctuations in the fish markets all over the world. A decline in the number of fishes in the Atlantic does affect it to a large extent. But Iceland has learnt to survive well. Fishing is also the industry, which engages the highest manpower in Iceland, thus making it very critical to its economy and to the general well being of the Icelanders.
The other industries that affect the economy here are the manufacturing and service sectors. But the manufacturing sector too concentrates heavily on the equipment needed for the fishing industry and its products. The other sector includes the agricultural sector, especially vegetables. Grazing lands, aluminum smelting and ferrisilicon production are also some of the other notable areas. Even biotechnology has fast started gaining ground here.
The Icelanders benefit largely from and have learnt to use cleverly, their natural resources to the hilt. Especially the fish and energy production has made them pretty self-sufficient in these respective areas and has been a driving force for the economy. Energy production includes hydroelectricity and geothermal energy, thanks to the abundance of geysers in this region.
And Iceland being so blessed naturally, how can we forget the impact of tourism on its economy? Tourism off late has been growing rapidly and contributing a lot to the Icelandic economy.
Iceland exports medical products other than the expected fish and fish products. Otherwise, Iceland depends on imports for the other goods. Trade with the European nations, Scandinavian nations, Germany and the US is common.
Iceland is thus not only physically inviting but also boasts of a formidable economy. All these factors surely make it a place worth visiting!
Dagur Jonsson is the editor of Iceland Guest, a website specializing in tourist information for travelers to Iceland. For more information visit www.icelandguest.com
