Iceland has a social market economy, which combines capitalism and free market system of economy. The GDP of a country represents the market value of total goods and services produced by a nation in a given year. The current market value of Iceland total goods and services produced in the country as in year 2011 was $37114.78 (US dollar). This value has been adjusted for the purchasing power parity (PPP), which has been placed at 169% of the world average. The per capita GDP has historically averaged 25471.38 USD, from 1980 to 2011. Overtime Iceland has achieved high economic growth and development remarkably achieving high rates of employment and reducing unemployment in the country. In year 2010, the unemployment rate was 8.1%, but this has improved to 6.9% in 2011 (Trading Economics, 2012).
The recent economic development and growth in Iceland has been due to increased domestic market as a result of financial expansion in the country. The rate of inflation has also been contained through various policies adopted by the government. As of 2010 the rate of inflation was 5.4%, while in year 2011 the rate of inflation reduced to 4.5%. However, as compared to the inflation rate in the U.S.A, Iceland inflation rate is high, since the U.S.A. inflation rate stands at 3.1% as reported in 2011 (CIA, 2012). The rate of unemployment is, however, lower in Iceland as compared to the U.S.A, since the country’s rate of unemployment is 6.9%, while that of the U.S.A is 8.1% as reported in year 2011. Iceland has a deficit current account balance of $1 billion in year 2011, which was an improvement from $-1.0009 billion in 2010. The country fish industry has been the main source of the country production, since it contributes 40% of the country’s exports. In addition, the country exports aluminum, animal products and diatomite among other products. Iceland main imports include machinery, equipment, petroleum products, textile and foodstuff among others. Their main trading partners include Netherlands, Germany, the UK, Norway, China, the U.S. and Brazil among others. Iceland is a constitutional republic, while the U.S.A has a constitutional, federal system of government grounded on strong democratic tradition (CIA, 2012).
Iceland has no regular military forces but Icelandic national police is the only agency in the country providing internal security. NATO soldiers provide the country defense from external attacks. The country has unicameral parliamentary system and elections are held every four years. The Constitution does not establish the terms, during which the president can run for the presidency in the country (CIA, 2012).
Facts about India
India economy has experienced a revolution with increased industrialization and economic development. The GDP was reported to be worth $1847.98 billion USD in year 2011; it has also been valued to be equivalent to 2.98% of the world economy. The rates of unemployment in India have also been low, with 2010/2011 fiscal year reporting unemployment rates of 3.8%. Historically unemployment rates averaged 7.57% showing the economy has improved (CIA, 2012).