Iceland: Economic globalization

The latest value from 2022 is 70.08 points, an increase from 70 points in 2021. In comparison, the world average is 59.16 points, based on data from 184 countries. Historically, the average for Iceland from 1970 to 2022 is 57.07 points. The minimum value, 37.46 points, was reached in 1972 while the maximum of 75.73 points was recorded in 2006. See the global rankings for that indicator or use the country comparator to compare trends over time.

The KOF Economic Globalization Index for Iceland and other countries has two dimensions. First, it measures the economic flows between Iceland and the rest of the world in terms of international trade and international investment. The question is whether Iceland exchanges a lot of goods, services, and investments with other countries. Second, it measures the restrictions to trade and investment such as tariffs and capital controls on international investment. Each dimension is based on several variables that are combined in one overall index that ranges from 0 to 100.

Definition: Economic globalization has two dimensions: actual economic flows and restrictions to trade and capital. The sub-index on actual economic flows includes data on trade, FDI, and portfolio investment. The sub-index on restrictions takes into account hidden import barriers, mean tariff rates, taxes on international trade (as a share of current revenue), and an index of capital controls. More information and the original data can be obtained here.