Inspired by Iceland
Iceland needs to continue good work as Nordic countries ease out of recession
Posted by Max Naylor on Wednesday, May 26, 2010
The concisely-named Organisation for Economic Co-operation and Development, or OECD, says in a new report that all the Nordic countries are now in a period of economic recovery. The organisation states that Iceland has achieved impressive results in its efforts to tackle the consequences of the bank collapse in the autumn of 2008. According to its report, economic growth is set to start again in the later part of this year, and should clock in at about 2.3% next year. Conversely, the rate of recession this year is expected to be around 2.2%.

The OECD says that the actions of the authorities in the past quarter have laid good foundations for economic recovery which will mostly stem from increased private consumption. It should therefore be possible to push investment in power-intensive industries next year.

It’s not all a pat on the shoulder for the government, however. The organisation has emphasised that the government will need to stick to its targets on state finance, as it has done so far. There should be a continued emphasis on stability of the króna, and it will only be possible to lift currency restrictions when foreign currency reserves are sufficient and the banking system is adequately supported.

The full report on Iceland, accompanied by graphs, can be read here.

Source: mbl.is

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