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Economy and Banking Sector of Iceland

National Currency

Icelandic Króna (ISK)

Exchange Rate

1 EUR = 137.5 ISK (2020-02-14)

GDP

Nominal GDP (2018)
21.9 bln EUR  (+0.03%)
Nominal GDP per Capita (2017)
63,200 EUR  (+0.15%)
Real GDP Growth (2018)
4.6 %  (2017: 3.6 %)

According to Eurostat, nominal GDP of Iceland in 2018 was 21.9 bln EUR.

Iceland outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.5% over the past 10 years (2008 - 2018). In 2018 real GDP growth was 4.6% which was above the Euro Area average (1.9%) and above the European Union average (2.0%). Real GDP growth in 2019 - 2024 are IMF's estimates.

Real GDP Growth in Iceland.

Chart 1. Real GDP Growth in Iceland. Source: Eurostat, International Monetary Fund.

In 2017, nominal GDP per capita in Iceland was 63,200 EUR.

Iceland has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 24.1% over the past 10 years (2007 - 2017). GDP per capita at PPP in 2018 - 2024 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Iceland; European Union = 100.

Chart 2. GDP Per Capita at Purchasing Power Parity in Iceland; European Union = 100.

Inflation Rate

CPI, MoM (Mar 2019)
1.0 %  (Feb 2019: -0.6 %)
CPI, YoY (Mar 2019)
1.3 %  (Feb 2019: 1.0 %)
CPI, Year Average (2018)
0.7 %  (2017: -1.7 %)

According to Eurostat, inflation rate in Iceland in 2018 expressed as annual percentages of average consumer prices was 0.7% which was below the Euro Area average (1.8%) and below the European Union average (1.9%). Inflation rates in 2019 - 2024 are IMF's estimates.

Inflation Rate in Iceland.

Chart 3. Inflation Rate in Iceland. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2018)
2.7 %  (2017: 2.8 %)

According to Eurostat, unemployment rate in Iceland in 2018 was 2.7% which was below the Euro Area average (8.2%) and below the European Union average (6.8%). Unemployment rates in 2019 - 2024 are IMF's estimates.

Unemployment Rate in Iceland.

Chart 4. Unemployment Rate in Iceland. Source: Eurostat, International Monetary Fund.

Credit Ratings (as of May 2018)

Fitch
A (high credit quality), outlook stable
Moody's
A3 (upper medium grade), outlook stable

Iceland has sovereign credit ratings assigned by Fitch and Moody's: the rating set by Fitch is A (high credit quality), outlook stable; the rating set by Moody's is A3 (upper medium grade), outlook stable.