The economy of Iceland is small and subject to high volatility. In 2007, gross domestic product was US$12.144bn in total and $38,400 per capita, based on purchasing power parity (PPP) estimates. The financial crisis of 2007 2009 has produced a decline in GDP and employment, although the magnitude of this decline remains to be determined. Iceland has a mixed economy with high levels of free trade and government intervention. However, government consumption is less than in other Nordic countries. In 1990s, Iceland commenced extensive free market reforms, which initially produced strong economic growth. As a result, Iceland was rated as having some of the world's highest levels of economic freedom as well as civil freedoms.
