Iceland enjoys a small, well-developed economy, which is 77.1% free. In spite of having an mixed economy Iceland's economy is mainly based on
Free Market Economy. The Financial Sector of Iceland is very modern. It has simple & transparent commercial operations.
The
Free Market Economy of Iceland includes service, fishing, tourism & various other industries.
Iceland has the membership of
It holds the fifth position in world in Gross Domestic Product (GDP) per capita. Iceland also stands second in human development.
Free Market Economy of Iceland has permitted foreign investment without government intervention though capital allocation is restricted in some cases.
Iceland is world's least corrupt economy which enjoys high levels of freedom in the following sectors:
- business (94.1%)
- fiscal (82.4%)
- property rights (90.0%)
- monetary (82.9%)
- trade (74.0%)
- financial (70.0%)
- freedom from corruption (97.0%)
However the freedom is lower in terms of
- labor(69.9%)
- investment(60.0%)
- freedom from government(50.3%)
As oppose to planned economy where government makes plan regarding what to produce and in what quantity, the
Free Market Economy allows a high level of market freedom. Production and distribution of goods and services are determined by free market, guided by free price system, without any intervention of the government. Though many of the experts advocate government intervention to avoid anarchy and to maintain stable currency, to protect market competition and consumer.
In spite of being capitalistic in nature
Free Market Economy of Iceland supports welfare state. Out of 41 countries in European region the rank of Iceland is 8.
