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Islande


  • 3-November-2023

    English

    Immigration in Iceland - Addressing challenges and unleashing the benefits

    Immigration has increased rapidly since the late 1990s, driven largely by strong economic growth and high standards of living. By mid-2023, foreign citizens made up around 18% of the population. This has brought important economic benefits to Iceland, including by boosting the working age population and helping the country to meet labour demands in fast-growing sectors. However, there are important challenges regarding the integration of immigrants and their children that need to be addressed through a comprehensive approach, helping to make the most of immigration. Successful labour market integration of immigrants requires more effective language training for adults and an improvement in skills recognition procedures. At the same time, immigrants need more opportunities to work in the public sector and the adult learning system should be adjusted to better encompass their training needs. Strengthening language skills is key to improving the weak educational outcomes of immigrant students. Enhancing teachers’ preparedness to accommodate students’ diverse educational needs is another pre-requisite. Strengthening integration further hinges upon meeting the housing needs of the immigrant population, including through an increase in the supply of social and affordable housing.

  • 20-juin-2023

    Français

    L’Islande doit lutter contre l’inflation et tirer le meilleur parti de l’immigration

    Portée par le tourisme étranger et la vigueur de la demande intérieure, l’économie islandaise est aujourd’hui l’une des plus dynamiques de l’OCDE. Sa croissance devrait toutefois ralentir, dans la mesure où le durcissement des conditions financières et le climat d’incertitude pèsent sur l’investissement des entreprises, d’après un nouveau rapport de l’OCDE.

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  • 8-April-2022

    English

    The effect of a carbon tax rise on Iceland’s economy

    This paper studies the potential impact of higher carbon taxation - to reach the government’s emission targets by 2030 - on Iceland’s economy. The paper is divided into two parts. First, a DSGE modelling exercise suggests that the equivalent of an oil price hike of between 30% and 55% is needed to reach the 2030 target, implying a GDP decline of between 0.3% and 0.6% by 2030. The impact on inflation would be very small. Second, a panel regression for the fishing industry reveals that a 40-50% oil price hike would be sufficient to reduce the entire fishing fleet’s emissions by 10%, raising total factor costs for the fishing companies by 4-5%. Such a cost hike would hardly threaten the competitiveness of the fishing industry. Both approaches assume that a carbon tax rise would have no effect on production technology.

  • 4-November-2021

    English

    Fostering innovation in Iceland for the digital era

    Iceland is an innovative country, but has untapped innovation potential. Strengthening innovation, especially in the ICT area, is crucial for strong productivity growth and performance in an increasingly digitalised world, as well as a sustained recovery from the COVID-19 pandemic. Ensuring more effective public support for business R&D is important. The R&D tax incentive scheme is generous by international comparison, but take-up has been low and many smaller firms have not been inclined to innovate. Following increased support, outcomes need to be monitored regularly. Adopting new technologies is also essential for stronger innovation outcomes. Competition-friendly framework conditions are key to sharpening firms’ incentives to adopt advanced technologies. The public sector too could become more digitalised. The education system needs to provide relevant skills. Participation of adult workers, especially the less educated, in re-skilling and up-skilling programmes should increase further. At the same time, business and universities need to collaborate more to maximise knowledge flows, with important benefits for innovation and society.

  • 27-novembre-2017

    Français

    Marché du travail et négociations collectives en Islande : partager le butin sans gâcher les parts

    L’Islande se caractérise par des niveaux de vie élevés, un faible taux de pauvreté et une forte inclusivité, et son système de retraite est l’un des plus viables.

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  • 11-octobre-2017

    Français

    Assurer la pérennité du tourisme de nature en Islande

    En Islande, le tourisme connaît un formidable essor. Le nombre de touristes visitant le pays chaque année a quadruplé entre 2010 et 2016 et tout indique que ce dynamisme va se poursuivre. De fait, le secteur du tourisme, qui est aujourd’hui la principale source de recettes d’exportations, crée également des emplois et voit se multiplier les créations d’entreprises.

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  • 8-August-2017

    English

    Collective bargaining in Iceland: sharing the spoils without spoiling the shares

    Icelandic labour market is flexible with high labour market participation, low unemployment, and labour supply dynamically responds to the economic cycle.

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  • 27-June-2017

    English

    OECD Economic Surveys: Iceland 2017

    Iceland is the OECD's fastest growing economy. It has made a remarkable turnaround from the crisis, helped by booming tourism, prudent economic policies and a favourable external environment. Iceland has an egalitarian society with strong trade unions, very low inequality and high gender balance. Nevertheless, as a very small open economy Iceland is prone to boom and bust cycles. Prudent fiscal and monetary policy are warranted in the current economic boom.

    The spectacular growth in tourist numbers has provided new jobs, boosted tax revenues and attracted currency inflows, but there are some growing pains with social pressures emerging. Growing tourist numbers are putting pressure on the environment, infrastructure and housing. Furthermore, the strengthening króna has created difficulties for other internationally-exposed sectors.

    Iceland is the most highly unionised OECD country and the wage-bargaining system has contributed to high living standards and an inclusive society. Nevertheless, recent disruptive strikes and high wage awards have intensified inflationary pressures and threaten competiveness. Fostering trust among the social partners and increasing wage coordination would make collective bargaining more effective and help sustain the benefits of the system for future generations.

    SPECIAL FEATURES: SUSTAINABLE TOURISM; EFFECTIVE LABOUR RELATIONS
     

  • 27-February-2013

    English

    A clean energy economy - Lessons from Iceland

    In his speech to OECD Ambassadors, the President of Iceland discussed how Iceland could offer lessons on the nature of a clean energy economy; and presented some insights from Iceland's recent challenges in dealing with the financial crisis.

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  • 20-septembre-2011

    Français

    ISLANDE: Pour une pêche durable et efficiente

    Sous réserve que l’Islande soit en mesure de négocier pour conserver le pouvoir de fixer ses TAC et pour maintenir son système de QIT, l’adhésion à l’UE, et donc à la politique commune de la pêche (PCP), ne devrait pas réduire l’efficience du système islandais de gestion des pêches.

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    • Étude économique de l'Islande 2011
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