• GDP: US$19.5 billion(2007).
• Main exports: Fish andfish products, aluminium, animal products, ferrosilicon and diatomite.
• Main imports: Machinery and equipment, petroleum products, food and textiles.
• Main trade partners: UK, Germany, Netherlands,Sweden and USA.

Iceland made headlines around the world in October 2008 as the country found itself on the verge of economic collapse. Icelandic banks, which had lent hundreds of billions of pounds overseas, were hit hard by the global recession, and the Icelandic government had to step in and seize control of the country's biggest banks in a rescue operation that sent shockwaves around the island and beyond.

It's uncertain at this stage what the future holds for this small country. Until recently Icelanders enjoyed a per capita income that was amongst the highest in the world at US$38,000 (2007)/US$39,400 (2008 estimate). The country had been in a positive economic period; in 2007 economic growth was at 2.5% and unemployment at a very low 1%.

Iceland is short of raw materials and so relies heavily on foreign trade; exports of goods and services account for more than one-third of GNP. The largest proportion of these derives from fishing, Iceland's most important export (70% of its export earnings). The economy is therefore particularly susceptible to fluctuating fish prices and maintains a broad fisheries exclusion zone (320km/200 miles) to protect its earnings. The government remains opposed to EU membership, primarily because of concern about losing control over their fishing resources.

Aluminium smelters are playing an increasingly big part in Iceland's economy, and have polarized Icelanders in recent years. While some argue that the pristine nature of the interior should be preserved at all costs, others think it should be tapped to regenerate areas where traditional industries are no longer viable.

Businesspeople are expected to dress smartly. Local businesspeople are conservative but very friendly and most speak English. Previous appointments are not generally necessary, but visits between May and September should be planned in advance as many local businesspeople travel abroad at this time. The telephone directory is listed by first name.

Office hours: Mon-Fri 0800-1600 (summer) and 0900-1700 (winter).

There are several large hotels in Reykjavík equipped for conferences and business meetings, while smaller conferences may be held at venues outside the capital. The new Icelandic National Concert and Conference Centre is due to open in autumn 2009 in Reykjavík. The complex will be located by the harbour and will include a cluster of conference and meeting halls (the largest of which will accommodate up to 750 delegates), as well as a luxury hotel and state-of-the-art concert hall.

Iceland Chamber of Commerce
House of Commerce, 7th floor, Kringlan 7, 103 Reykjavík, Iceland
Tel: 510 7100.
Website: www.chamber.is

Iceland Convention and Incentive Bureau 
Lækjargötu 3, 101 Reykjavík, Iceland
Tel: 562 6070.
Website: www.icelandconvention.com