Iceland at a Watershed
Dr. Fridrik Mar Baldursson, professor of economics at Reykjavik University presented on the Icelandic Economy on November 12th at the Bennett Jones offices in Toronto. The event was organized by the Icelandic Canadian Chamber of Commerce in partnership with Iceland Naturally, the Embassy of Iceland in Ottawa and the Consulate General of Iceland in New York.
In the last decade, Iceland has gone from boom to bust and to boom again. The country now enjoys strong growth, low unemployment, (historically) low inflation and healthy external balance. The legacy of the 2008 banking crisis has made it difficult to lift the capital controls imposed then, but a resolution to these problems now appears imminent, accompanied by a reduction in public and external debt. Iceland will be in an enviable position if these plans are realized. Overheating of the economy is the main economic risk at present, especially in light of generous hikes in recent wage agreements.
Click here for the presentation: