Synopsis of Iceland Government
Current Event Summary:
Iceland has a shortage of foreign exchange:
A few weeks ago, Iceland's government began threatening to give up guaranteeing large deposits in order to indirectly let the rich person increase spending. However, the result seemed to be off track. Sedlabanki(Bank of Iceland) said that the private sector of Iceland is running out of money and unable to pay the foreign debt. Currently, the largest challenge for Iceland is to allow the flow of capital without triggering the marketing sell-off of Iceland Krona. Crude Oil and Petroleum
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Icelandic banks seeking to defer debt:
According to Icelandic news reporting on October 4,Icelandic-owned banks Landsbanki would like to a renegotiation about the£ 1.5 billion debt in order to delay the payment. Before 2008, Iceland's banking sectors has been developing rapidly in overseas markets. But it slumped because of the financial crisis happened in 2008 and cannot get out of debt until today. The British and Dutch governments are mainly creditors. In terms of the current agreement, the money should all be paid in 2018. |
Crude Oil:
Production: 0 bbl/day (2011 est.) country comparison to the world: 147 Exports: 0 bbl/day (2009 est.) country comparison to the world: 127 Imports: 0 bbl/day (2009 est.) country comparison to the world: 199 The thing this data tells me I think is that Iceland is not an oil based country. It does not really need rely to oil now. |
Petroleum
Consumption: 20,770 bbl/day (2011 est.) country comparison to the world: 127 Production:0 bbl/day (2009 est.) country comparison to the world: 190 Exports:1,209 bbl/day (2009 est.) country comparison to the world: 105 Imports:15,530 bbl/day (2009 est.) country comparison to the world: 117 From this data of Petroleum, I can tell that Iceland also not really rely to create income from petroleum, because it's rank of both importing and exporting peroleum is at one the last countries in the world. |
Questions I have:
1: How can I country operate today without crude oil?
2: Does Iceland really do not need to make income from exporting petroleum?
1: How can I country operate today without crude oil?
2: Does Iceland really do not need to make income from exporting petroleum?
Economic System of Iceland
In the 1990s Iceland undertook extensive free
market reforms, which initially produced strong economic growth. As a result, Iceland was rated as having one of the world's highest levels of economic freedom[8] as well as civil freedoms. In 2007, Iceland topped the list of nations ranked by Human Development Index and was one of the most egalitarian, according to the calculation provided by the Gini coefficient.
Current Economic System of Iceland
Iceland follows a capitalist economic policy with a generous welfare system. But from 2006 onwards, the economy faced problems of growing inflation and current account deficits. Partly in response, and partly as a result of earlier reforms, the financial system expanded rapidly before collapsing entirely in a sweeping financial crisis. Iceland had to obtain emergency funding from the International Monetary Fund and a range of European countries in November 2008.
Unemployment rate
Iceland: 5.6% (2012 est.) country comparison to the world: 56 7.4% (2011 est.) Italy: 10.9% (2012 est.) country comparison to the world: 85 France: 9.80% (2012 est.) country comparison to the world: 96 United States: 8.20% (2012 est.) country comparison to the world: 102 This data means that only 5.6% of people lost their job in 2012. And in the ranking of the umemployment rate, Iceland was at the place 56 which means in a median level compare to other countries. |
Population below poverty line
Iceland: 332,100 families (2011 est.) country comparison to the world: 240 Italy:country comparison to the world: 223 France:6.2% (2006 est.) country comparison to the world: 151 United States: 15.1% (2010 est.) country comparison to the world: 122 This data means that Iceland has a very low percent of number of people that are below the poverty line. The rank of it is 240 which means number of people that are below poverty line in Iceland are less than 239 countries. |
GDP of Iceland in 2011: US$ 13.64 billion
GDP per capita - current prices: US$ 41,411 (2011 estimate)
GDP per capita - current prices: US$ 41,411 (2011 estimate)