Iceland ranks fifth in global competitiveness, according to the IMD World Competitiveness Yearbook, 2004. The US ranks first, Singapore second, Canada third and Australia fourth. Last year, Iceland ranked eighth. This result puts Iceland at first place in Europe for competitiveness, outperforming the continent's - and some of the world's - biggest industrial nations. The World Competitiveness Yearbook features sixty national and regional economies and examines 323 different criteria, grouped by four competitiveness factors. Main results regarding IcelandAccording to the report, Iceland's performance has improved compared to last year. Iceland's main strengths are governmental efficiency, strong societal framework, strong domestic economy and high business efficiency, due to strong flexibility and people's adaptability. Finally, Iceland has a developed infrastructure, with the educational and technological infrastructure being the main strengths, along with low pollution. The World Competitiveness Yearbook, a comprehensive annual report on the competitiveness of nations, ranks and analyzes how a nation's environment creates and sustains business competitiveness. The report is provided by IMD, an independent non-profit foundation located in Lausanne, Switzerland.

According to the Ministry, a new economic upswing began last year which has yielded economic growth of 4% and is estimated to last for at least the next 5-6 years. This year, a growth of 4½% is expected and in 2005 of 5¼%. While growth will continue to exceed 4% in 2006, it is estimated to recede somewhat in the following years, 2007-2010, to just under 3%. The main reasons for forecasting strong growth are greatly increased investment in large-scale industry and the continued rapid rise in private consumption.  

Ground was broken last month to expand Nordural at Grundartangi. This expansion will double the smelter's capacity to 180,000 mtpy and is planned for completion by spring 2006. Recently, Nordural was acquired by Century Aluminum (NASDAQ CENX).