Iceland

18 Aug Iceland

Although the most sparsely populated country in Europe, Iceland was the twelfth wealthiest nation on the planet according to its purchasing power parity in 2020. The volcanic nation’s thriving tourism sector is the main pillar of its economy, accounting for 23% of its gross national product and 22% of its employment in 2019. However, the sector took a massive blow during the COVID-19 pandemic, with foreign visitors falling by three quarters in 2020. While the sector was held up somewhat by Icelanders doubling their domestic trips, unemployment rates were still high in 2021.

Iceland is actively looking to diversify its economic portfolio to become less dependent on its thriving tourism industry. Reykjavík, which along with the southwest region of the country contains two thirds of the island nation’s citizens, has grown sizable software production and biotechnology sectors. Additionally, Iceland has attracted massive growth in its data centers due to its cold climate and green energy sources. While other nation’s struggle to lower fossil fuel usage and heighten their renewable sector, Iceland’s 330,000 citizens consume energy from 100% renewable sources, 73% from hydropower and 27% from geothermal plants.

As the nation moves away from the pandemic and travel begins to pick up, the country’s gross domestic product is expected to rise. The Organisation for Economic Co-operation and Development projects 2.8% growth in 2021 and 4.7% in 2020.Nordic_Countries_Iceland