The country has rich resources, including an abundance of potential hydroelectric power, used for the metallurgical industry. More than 80% of the population enjoys geothermal heating, one of the many factors that provide an unpolluted environment.

Iceland has a high GDP per capita, U.S.$ 53,600 (2021), providing a high standard of living. Health: 277 inhabitants per doctor and life expectancy of 86 years for females and 81 years for males (2021).

In 1944 Iceland became independent; since then new fields of industry are exploited in metallurgy and food production. Fish-farming and geothermal vegetation are two examples of high technology used in combination with local resources. In recent years, the service sector has grown substantially, especially tourism and financial services.

Iceland is a member of the Union of Paris, a member of the European Free Trade Association (EFTA), and also a party to the European Economic Area (EEA) Agreement.