Iceland improved one spot from 31st to 30th in the World Economic Forum's competitiveness rankings due to improvements in macroeconomic aspects and modifications in the financial markets.
The Viking nation had fallen all the way to 46th place in 2009 after the country's economic collapse, which saw Iceland's three largest banks fail. The government decided to let the banks fail, and the strategy seems to have paid off as the domestic economy is beginning to get back on its feet.
While the real estate market and tourist industry continue to spark recovery, there is still one glaring absence the Icelandic government needs to address; the Draconian capital controls. The domestic currency, the Icelandic Kronar, is expected to experience significant inflation once these controls are removed.
Therefore, the general public continues to wait anxiously for the pending legislation to remove the Icelandic economy's training wheels. However, despite this dark cloud hovering on the horizon, the Icelandic economy has shown great signs of improvement, which has been reflected in the World Economic Forum's annual ratings.
Iceland improved one spot from 31st to 30th in the World Economic Forum's competitiveness rankings due to improvements in macroeconomic aspects and modifications in the financial markets.
The Viking nation had fallen all the way to 46th place in 2009 after the country's economic collapse, which saw Iceland's three largest banks fail. The government decided to let the banks fail, and the strategy seems to have paid off as the domestic economy is beginning to get back on its feet.
While the real estate market and tourist industry continue to spark recovery, there is still one glaring absence the Icelandic government needs to address; the Draconian capital controls. The domestic currency, the Icelandic Kronar, is expected to experience significant inflation once these controls are removed.
Therefore, the general public continues to wait anxiously for the pending legislation to remove the Icelandic economy's training wheels. However, despite this dark cloud hovering on the horizon, the Icelandic economy has shown great signs of improvement, which has been reflected in the World Economic Forum's annual ratings.
