Iceland’s Top Exports 2023
by FlagPictures.orgA Nordic island nation east of Greenland in the North Atlantic ocean, Iceland shipped US$6.62 billion worth of exported products around the globe in 2023.That dollar amount results from a 26.6% increase compared to $5.23 billion in international sales during 2019.Year over year, the value of Iceland’s exported goods declined by -10.8% from $7.42 billion in 2022.Based on the average exchange rate for 2023, the Icelandic króna depreciated by -12.5% against the US dollar since 2019 and diluted by -2% from 2022 to 2023. Iceland’s weaker local currency made its exports paid for in stronger US dollars relatively less expensive for international buyers.Most Valuable International Customers for Iceland’s ExportsThe latest available country-specific data shows that 86.5% of products exported from Iceland was bought by importers in: Netherlands (36.4% of the Icelandic total), United States of America (10%), United Kingdom (8.8%), France (6.5%), Norway (5.9%), Germany (4.9%), Spain (4%), Denmark (2.6%), mainland China (2.3%), Japan (1.8%), Portugal (1.7%) and Poland (1.6%).From a continental perspective, 80.4% of Iceland exports by value was delivered to fellow European countries while 11.3% was sold to North American importers. Iceland shipped another 5.8% worth of goods to Asia.Smaller percentages went to buyers in Africa (1.2%), Latin America (0.7%) excluding Mexico but including the Caribbean, then Oceania (0.6%) led by Australia.Given Iceland’s population of 388,000 people, its total $6.62 billion in 2023 exports translates to about $17,100 for every resident in the Nordic country. That dollar metric greatly lags the average $19,800 per capita one year earlier during 2022.The following export product groups represent the highest dollar value in Icelandic global shipments during 2023. Also shown is the percentage share each export category represents in terms of overall exports from Iceland.Aluminum: US$2.4 billion (36.6% of total exports)Fish: $2.2 billion (32.5%)Optical, technical, medical apparatus: $349.4 million (5.3%)Food industry waste, animal fodder: $284.7 million (4.3%)Iron, steel: $236.6 million (3.6%)Animal/vegetable fats, oils, waxes: $235.5 million (3.6%)Mineral fuels including oil: $167.1 million (2.5%)Machinery including computers: $107.8 million (1.6%)Meat/seafood preparations: $106.9 million (1.6%)Electrical machinery, equipment: $70.9 million (1.1%)Iceland’s top 10 exports are concentrated, generating 92.7% of the overall value of Icelandic global shipments.Optical, technical and medical apparatus was the fastest grower among Iceland’s top 10 export categories, up by 85.7% year over year since 2022.In second place for improving export sales was machinery including computers via a 19.2% advance.Icelandic shipments of electrical machinery and equipment posted the third-fastest gain in value, up by 12.5%.The leading decliner among Iceland’s top 10 export categories was iron and steel which fell -35.6%The above-listed product categories are at the 2-digit Harmonized Tariff System (HTS) code level.At the more granular four-digit Harmonized Tariff System (HTS) code level, Iceland’s most valuable exported products in 2023 were unwrought aluminum (31.5% of total), fish fillets and other pieces (16%), whole fresh fish (5.9%), whole frozen fish (5.6%), miscellaneous dried, salted or smoked fish (4.4%), orthopedic appliances (4.2%), inedible meat flour (also 4.2%), fish or marine mammal fats and oils (3.4%), iron ferroalloys (3.2%), then aluminum wire (2.9%).Products Resulting in Iceland’s Largest Trade SurplusesThe following types of Icelandic product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.Aluminum: US$2.3 billion (Down by -21.1% since 2022)Fish: $2.1 billion (Down by -7.5%)Iron, steel: $171.6 million (Down by -34.3%)Animal/vegetable fats, oils, waxes: $152.8 million (Down by -14.8%)Food industry waste, animal fodder: $116.1 million (Down by -14.8%)Optical, technical, medical apparatus: $109.7 million (Reversing a -$136.1 million deficit)Meat/seafood preparations: $92.8 million (Down by -7.8%)Live animals: $15.7 million (Up by 41.6%)Raw hides, skins not furskins, leather: $3.7 million (Down by -21.3%)Wool: $3.3 million (Up by 118.6%)Iceland has highly positive net exports in the international trade of aluminum and fish. In turn, these cashflows indicate Iceland’s strong competitive advantages under related product categories.Products Causing Iceland’s Worst Trade DeficitsIceland incurred an overall -US$2.86 billion trade deficit for 2023 expanding by 22.3% from -$2.34 billion in red ink one year earlier in 2022.Below are exports from Iceland that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Iceland’s goods trail Icelandic importer spending on foreign products.Vehicles: -US$1.12 billion (Up by 7.2% since 2022)Mineral fuels including oil: -$1.09 billion (Down by -14.4%)Electrical machinery, equipment: -$1.04 billion (Up by 7.9%)Machinery including computers: -$911.3 million (Up by 7.1%)Inorganic chemicals: -$627.7 million (Down by -7.6%)Furniture, bedding, lighting, signs, prefabricated buildings: -$275.2 million (Down by -0.3%)Articles of iron or steel: -$242.5 million (Down by -1.1%)Plastics, plastic articles: -$229.7 million (Up by 1.8%)Wood: -$183.9 million (Down by -3.6%)Pharmaceuticals: -$182.1 million (Down by -10.3%)Iceland has highly negative net exports and therefore deep international trade deficits under the vehicles product category plus the energy-related category mineral fuels including oil.Icelandic Export CompaniesNot one Icelandic corporation ranks among Forbes Global 2000.Wikipedia lists export-related companies from Iceland. Selected examples are shown below.Arctic Trucks (commercial vehicles)Carbon Recycling International (methanol)Egill Skallagrímsson Brewery (alcoholic beverages)HB Grandi (fishery)Nói Síríus (chocolates)Promens (packaging, plastics)Sláturfélag Suðurlands (food producer co-op) In macroeconomic terms, Iceland’s total exported goods represent 24.5% of its overall Gross Domestic Product for 2023 ($27.1 billion valued in Purchasing Power Parity US dollars). That 24.5% for exports to overall GDP in PPP for 2023 compares to 29.8% one year earlier. Those percentages suggest a relatively decreasing reliance on products sold on international markets for Iceland’s total economic performance, albeit based on relatively short timeframe.Another key indicator of a country’s economic performance is its unemployment rate. Iceland’s unemployment rate averaged 3.388% for 2023, down from an average 3.75% in 2022 according to International Monetary Fund statistics.Iceland’s capital city is Reykjavik.See also Denmark’s Top Trading Partners, Norway’s Top Trading Partners, Frozen Fish Exports by Country and Top Salmon Exports & Imports by CountryResearch Sources:Central Intelligence Agency, The World Factbook: Country Profiles. Accessed on April 20, 2024Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on April 20, 2024International Monetary Fund, Exchange Rates selected indicators (National Currency per U.S. dollar, period average). Accessed on April 20, 2024International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on April 20, 2024International Trade Centre, Trade Map. Accessed on April 20, 2024Investopedia, Net Exports Definition. Accessed on April 20, 2024Richest Country Reports, Key Statistics Powering Global Wealth. Accessed on April 20, 2024Wikipedia, Gross domestic product. Accessed on April 20, 2024Wikipedia, Iceland. Accessed on April 20, 2024Wikipedia, List of Companies of Iceland. Accessed on April 20, 2024Wikipedia, Purchasing power parity. Accessed on April 20, 2024
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