As part of Taste of Iceland in Toronto, Dr. Fridrik Mar Baldursson, professor of economics at Reykjavik University, led a discussion about where Iceland stands compared with European countries like Ireland and Greece.
The presentation, entitled Iceland at a Watershed: Is It Different This Time Around?, focused on the ways Iceland recovered from its 2008 economic bust to become the vibrant economy it is today. When Iceland was faced with a banking crisis, it handled things differently than other countries have. Iceland let its banks collapse and jailed the bankers responsible for the crisis, which devalued its currency. Other European countries, as members of the Eurozone, do not have that option; that’s one reason Ireland and Greece struggled more with banking crises than Iceland did.
Since then, Iceland has seen robust, export-driven growth. They’re currently enjoying low inflation and unemployment, and a current account surplus with a good underlying international investment position. Even with current policy challenges, Iceland is seeing good outlooks and opportunities in their economic future.
See more information from the presentation below: