Iceland PESTLE Insights – A Macroeconomic Outlook Report

Financial intermediation, real estate and business activities contributed 25.5% to the gross value added (GVA) in 2023, followed by the mining, manufacturing and utilities with 14.6%, and wholesale, retail and hotels with 11.9%. According to MarketLine estimates, the three sectors are expected to grow by 6.2%, 6.4% and 8.0%, respectively, in 2024.

Reykjavik contributed 57.6% of Iceland’s GDP and was home to 60.8% of the country’s population as of 2023

Scope

According to the World Bank, Logistics Performance Index (2023), Iceland ranked 26th out of 139 nations in 2023

Reasons to buy

Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.

PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations

Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.

This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.

Companies mentioned

Iceland Air Group

Frisk

Eimskip

Table of Contents

Table of Contents

List of Exhibits

Did You Know?

Country Highlights

Key Economic Updates

Country Snapshot

Political Landscape

Economic Landscape

Social Landscape

Technological Landscape

Legal Landscape

Environmental Landscape

Outlook

List of Tables

Exhibit 1: Iceland’s performance in terms of its country risk analysis in comparison to West Europe and the World average

Exhibit 2: Performance overview (score: 0–100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: ICEXI index

Exhibit 5: Key sectors’ contribution to the economy

Exhibit 6: FDI inflows and FDI inward stock (2018–22)

Exhibit 7: Greenfield FDI projects and net cross border M&A deals (2018–22)

Exhibit 8: Key infrastructure indicators

Exhibit 9: Real GDP and household consumption growth rate (2019–26f)

Exhibit 10: Real GDP growth rate comparison (2023e)

Exhibit 11: Volume of exports and imports growth (2019–26f)

Exhibit 12: Current account balance (2019–26f)

Exhibit 13: Top three commodity exports, % of total exports (2018–22)

Exhibit 14: Exports of aluminum and articles thereof, % share of the world’s total (2022)

Exhibit 15: Interest rates (February 2020 – February 2024)

Exhibit 16: Exchange rate and inflation (2019–26f)

Exhibit 17: General government deficit (2019–26f)

Exhibit 18: General government debt (2019–26f)

Exhibit 19: Unemployment rate (2019–26f)

Exhibit 20: Labor force participation rate (2019–26f)

Exhibit 21: Average annual wages (2019–26f)

Exhibit 22: Rural/urban share of total population (1995, 2005, 2015, 2025f)

Exhibit 23: Age-group share of total population (1995, 2005, 2015, 2025f)

Exhibit 24: Gender split (1995, 2005, 2015, 2025f)

Exhibit 25: Internet users as a percentage of total population, mobile penetration rate and broadband penetration rate (2023e)

Exhibit 26: Number of patents granted per million population (2022)

Exhibit 27: High-technology exports, % of manufactured exports (2022)

Exhibit 28: Index of economic freedom (rankings) 2024

Exhibit 29: Corruption perceptions index (rankings) (2023)

Exhibit 30: Renewable energy capacity (2018–23)

Exhibit 31: CO2 emissions (2018–22)

List of Figures

List of Figures

Exhibit 1: Iceland’s performance in terms of its country risk analysis in comparison to West Europe and the World average

Exhibit 2: Performance overview (score: 1–100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: ICEXI index (December 2021 – December 2022)

Exhibit 5: Exchange rate, daily basis (December 2021 – December 2022)

Exhibit 6: Key sectors’ contribution to the economy

Exhibit 7: FDI inflows to Iceland, FDI outflows from Iceland, and FDI inward stock, FDI outward stock (2017–21)

Exhibit 8: Value and number of Greenfield FDI projects in Iceland and of net cross border M&As purchases in Iceland (2017–21)

Exhibit 9: Key infrastructure indicators

Exhibit 10: Real GDP and household consumption growth rate (2017–24f)

Exhibit 11: Real GDP growth rate comparison (2021)

Exhibit 12: Export, import and trade balance (2017–24f)

Exhibit 13: Current account balance (2017–24f)

Exhibit 14: Top three commodity exports, % of total exports (2017–21)

Exhibit 15: Aluminium and articles thereof, % of total exports (2021)

Exhibit 17: Exchange rate and inflation (2017–2024f)

Exhibit 18: Public finance (2017–24f)

Exhibit 19: General government debt (2017–24f)

Exhibit 20: Unemployment rate (2017–24ff)

Exhibit 21: Average annual wages (2017–24f)

Exhibit 22: Labor cost index (2017–24f)

Exhibit 23: Rural/urban share of total population (1995, 2005, 2015, 2025)

Exhibit 24: Age-group share of total population (1995, 2005, 2015, 2025)

Exhibit 25: Gender split (1995, 2005, 2015, 2025)

Exhibit 26: Internet users % of total population, mobile penetration rate and broadband penetration rate (2020)

Exhibit 27: Number of patents granted per million population (2020)

Exhibit 28: High-technology exports (% of manufactured exports) (2020)

Exhibit 29: Doing business in Iceland (2021)

Exhibit 30: Corruption perceptions index (rankings) (2021)

Exhibit 31: CO2 emissions (2017–21)

    Pricing

Quick Buy
Add to basket Enquire before buying

Discounts available for multiple purchases.

reportstore@marketline.com
+44 20 7947 2960

Saved reports