In 2008 the Icelandic economy went through dramatic changes with the collapse of its financial sector. At the same time, foreign parties interested in Iceland had a difficult time accessing in English a holistic overview of events and the status of the economy following the crisis.

To remedy this, Iceland Chamber of Commerce (ICoC) published in October 2008 the first edition of this report. The aim is to provide an objective overview of the current economic, business and political landscape in Iceland, recent events and developments, and future economic prospects.

Key topics include:

• Iceland‘s ranking in terms of GDP, economic growth and various competitiveness indicators
• Labour market developements since the financial crisis
• Public and private debt levels and the post-crisis deleveraging phase
• Monetary policy, inflation and exchange rate developments since the financial crisis
• International trade in relation to external debt and exports composition
• Policy changes made by the new government, including EU negotiation developments
• The effects of the capital controls on households, firms and pension funds
• Major ongoing and prospective investment projects
• The banking system, access to credit and asset market developments
• Iceland‘s long-term growth prospects

The report is split into three sections. The first part details the current economic landscape in Iceland, both for the domestic economy and external trade. The second part covers recent developments and notable events in Iceland‘s political, economic and business environment. Lastly, the third part outlines Iceland‘s future prospects with regards to the economy‘s external obligations and long-term growth prospects.

Since its first publication, the report has regularly been revised and updated. Considerable changes have been made in the current edition, with more focus on the current economic landscape, on-going challenges and future prospects and less focus on past events. The report is sent to 2,200 recipients in business, governmental administration and other organisations around the world, but is also freely available on the Chamber‘s website.