Iceland’s growth performance has been impressive. Over the past decade, its real GDP has grown by 4% per annum, significantly bettering OECD growth over that period. As result, per capita GDP has recovered most of the ground lost in a preceding spell of sluggish growth, making the country the fifth-wealthiest in the OECD on that benchmark. Most of the rise in trend growth reflects productivity gains following the implementation of widespread structural reforms, which opened the economy and enhanced competition. Financial-market liberalisation and privatisation have unleashed entrepreneurial dynamism. Many companies have expanded abroad, and the country now plays a role that belies the small size of its economy. Labour markets have been increasingly opened to foreign participants, helping to reduce labour market tensions.