COUNTRY PROFILE. Iceland

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1 COUNTRY PROFILE Iceland

2 Statistical tables Factor I: Economic Performance WORLD COMPETITIVENESS RANKING 2018 All data are available from the World Competitiveness Online. Visit our eshop 1

3 COMPETITIVENESS TRENDS - OVERALL ICELAND OVERALL PERFORMANCE (63 countries) CHALLENGES IN 2018 Strong Strong exchange exchange rate rate is a is strain a strain on on exports. exports. Ensuring as soft landing as possible after seven years of an economic boom. Keeping wage growth in line with inflation target and productivity growth. Increased competition from e-commerce and foreign multinationals. Monetary policy reform and lifting the remaining capital controls. Provided Icelandic Chamber by: of Commerce, Reykjavik Icelandic Chamber of Commerce, Reykjavik 24 BASIC FACTS Rank Capital Land area (square km '000) Reykjavik Exchange Rate (per $) Population - market size (millions) Gross Domestic Product (GDP) (US$ billions) GDP (PPP) per capita (US$) 51, Real GDP growth (%) Consumer price inflation (%) Unemployment rate (%) Labor force (millions) Current account balance (% of GDP) Direct investment stocks inward ($bn) Direct investment flows inward (% of GDP) COMPETITIVENESS LANDSCAPE Economic Performance Government Efficiency Business Efficiency Infrastructure Domestic Economy International Trade International Investment Employment 13 Prices Public Finance 7 Tax Policy 29 Institutional Framework 37 Business Legislation Societal Framework 6 Productivity & Efficiency 22 Labor Market 31 Finance 34 Management Practices Attitudes and Values 11 Basic Infrastructure 1 Technological Infrastructure 20 Scientific Infrastructure 30 Health and Environment Education PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS < 20 MILLION (34 countries)

4 COMPETITIVENESS TRENDS - FACTOR BREAKDOWN ICELAND ECONOMIC PERFORMANCE Sub-Factor Rankings : 2017 Domestic Economy 23 International Trade 47 International Investment 61 Employment 6 Prices GOVERNMENT EFFICIENCY Sub-Factor Rankings : 2017 Public Finance 1 Tax Policy 26 Institutional Framework 27 Business Legislation 20 Societal Framework BUSINESS EFFICIENCY Sub-Factor Rankings : 2017 Productivity & Efficiency 18 Labor Market 31 Finance 34 Management Practices 25 Attitudes and Values INFRASTRUCTURE Sub-Factor Rankings : 2017 Basic Infrastructure 1 Technological Infrastructure Scientific Infrastructure 30 Health and Environment 16 Education

5 WORLD COMPETITIVENESS DIGITAL RANKING 2018 All data are available from the World Competitiveness Online. Visit our eshop 4

6 DIGITAL TRENDS - OVERALL ICELAND OVERALL PERFORMANCE (63 countries) Overall Alpha Alpha Factors Beta BetaLabel Gamma GammaLab Sub-Factors Knowledge Talent Training & education Scientific concentration Technology Regulatory framework Capital Technological framework The direction of the triangle indicates the performance change from the last year: improved or stable declined Future readiness Adaptive attitudes Business agility IT integration OVERALL & FACTORS - 5 years OVERALL Knowledge Technology Future readiness COMPETITIVENESS & DIGITAL RANKINGS Digital Competitiveness N.B. This graph provides only a comparison of the country s performance in the two rankings PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS < 20 MILLION (34 countries)

7 u Overall top strengths w Overall top weaknesses FACTORS BREAKDOWN - STRENGHTS AND WEAKNESSES ICELAND KNOWLEDGE Subfactors Talent Training & education Scientific concentration Talent Rank Rank Rank Training & education Scientific concentration Educational assessment PISA - Math 29 Employee training 37 Total expenditure on R&D (%) 16 w International experience 51 u Total public expenditure on education 2 u Total R&D personnel per capita 5 Foreign highly-skilled personnel 44 Higher education achievement 27 Female researchers 14 Management of cities 25 Pupil-teacher ratio (tertiary education) 5 w R&D productivity by publication 61 u Digital/Technological skills 4 w Graduates in Sciences 54 Scientific and technical employment 18 w Net flow of international students 57 Women with degrees 11 w High-tech patent grants 54 TECHNOLOGY Subfactors Regulatory framework Capital Technological framework Regulatory framework Rank Capital Rank Technological framework Rank Starting a business 31 IT & media stock market capitalization - Communications technology 12 Enforcing contracts 25 Funding for technological development 26 Mobile Broadband subscribers 14 Immigration laws 9 Banking and financial services 34 Wireless broadband 11 Development and app. of technology 19 Investment risk 33 Internet users 10 Scientific research legislation 24 Venture capital 40 Internet bandwidth speed 17 Intellectual property rights 22 Investment in Telecommunications 48 High-tech exports (%) 11 FUTURE READINESS Subfactors Adaptive attitudes Business agility IT integration Adaptive attitudes Rank Business agility Rank IT integration Rank E-Participation 40 Opportunities and threats 9 E-Government 26 Internet retailing - u Innovative firms 2 Public-private partnerships 30 Tablet possession 22 Agility of companies 12 Cyber security 25 u Smartphone possession 3 Use of big data and analytics 25 Sofware piracy 35 Attitudes toward globalization 15 Knowledge transfer 22 6

8 IMD is ranked in open programs worldwide 7 years in a row. Financial Times Developing leaders Transforming organizations Impacting your future IMD Switzerland Chemin de Bellerive 23 P.O. Box 915 CH-1001 Lausanne Switzerland Central tel: IMD Singapore IMD SE Asia Pte. Ltd South Beach Tower 38 Beach Road #17-11 Singapore Central tel: Connect with us Talk with us info@imd.org IMD, IMD INTERNATIONAL REAL WORLD. REAL LEARNING, IMD BUSINESS SCHOOL and IMD WORLD COMPETITIVENESS YEARBOOK are trademarks of IMD International Institute for Management Development. IMD 2017

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