Experts continue to praise Iceland’s recovery success after the country’s bank bailouts of 2008.
Unlike the US and several countries in the eurozone, Iceland allowed its banking system to fail in the global economic downturn and put the burden on the industry’s creditors rather than taxpayers.
In the following years, the Icelandic government made drastic cuts that reduced the fiscal deficit from 14 percent of GDP to just two percent. At the same time, unemployment in Iceland has shrunk to less than five percent, while analysts predict the North Atlantic economy to grow some 2.8 percent by the end of 2012, according to recent reports.
The rebound continues to wow officials, including International Monetary Fund chief Christine Lagarde, who recently referred to the Icelandic recovery as “impressive”. And experts continue to reiterate that European officials should look to Iceland for lessons regarding austerity measures and similar issues.
The Financial Times outlined a number of important points for countries in the eurozone to consider in an article published on Monday. These include Iceland’s tactic of pursing “politics of social and economic inclusion”. This includes heavier taxes on the higher brackets while cutting welfare schemes less than other areas of the budget to retain the purchasing power of lower income groups.
[…] a récemment qualifié les performances économiques de l’Islande d’"impressionnantes". Au cours des dernières années, la petite île de l’Atlantique Nord a réussi à […]
[…] monétaire international, a récemment qualifié les performances économiques de l'Islande d'"impressionnantes". Au cours des dernières années, la petite île de l'Atlantique Nord a réussi à réduire son […]
[…] Icenews points out: […]
[…] points out: Experts continue to praise Iceland’s recovery success after the country’s bank bailouts of […]
[…] Icenews points out: Experts continue to praise Iceland’s recovery success after the country’s bank bailouts of 2008. […]
[…] also a lesson for austerity-lovers it seems: The Financial Times outlined a number of important points for […]
[…] Icenews points out: Experts continue to praise Iceland’s recovery success after the country’s bank bailouts of 2008. […]
[…] director of the International Monetary Fund, recently branded Iceland’s economic performance “impressive.” In the last few years the small island in the north Atlantic has managed to shrink its deficit, […]
[…] Icenews points out: Experts continue to praise Iceland’s recovery success after the country’s bank bailouts of 2008. […]