Oecd Economic Surveys Iceland 2023

Iceland’s economy is one of the fastest-growing in the OECD, driven by foreign tourism and strong domestic demand. The labour market is tight and wage growth robust, while high wage compression helps maintain a highly egalitarian economy.

Iceland’s economy is recovering from a deep COVID-19 recession. Fisheries and intellectual services exports are on the rise and foreign tourists are starting to come back as travel restrictions are gradually eased. The health crisis has been relatively mild so far, thanks to a smart testing and tracking strategy and a well-functioning health system.

Iceland has rapidly caught up with the richest OECD economies. Favourable external conditions and good policies helped create inclusive growth, low unemployment, low inflation, and sustainable public finances. The economy is very egalitarian, and living standards are among the highest in the OECD. Yet growth is now turning sharply due to a rapid decline in tourist arrivals and weak marine exorts, with growth projected to slow to around zero in 2019.

OECD's 1966 Economic Survey of Iceland examines current economic trends and longer-term trends and problems and draws a series of conclusions.

Iceland is the OECD's fastest growing economy. It has made a remarkable turnaround from the crisis, helped by booming tourism, prudent economic policies and a favourable external environment. Iceland has an egalitarian society with strong trade unions, very low inequality and high gender balance.