The Overleveraged Economy of Iceland | Economics Explained

Iceland's economy is unique due to its small population and reliance on natural resources like geothermal energy. Despite its small size, Iceland has a significant industrial sector, particularly in aluminium production, thanks to cheap electricity. The country faced a major financial crisis in 2008 due to an overgrown banking sector, but it recovered through government intervention and a boom in tourism. However, the COVID-19 pandemic has again challenged its economy, highlighting its dependence on tourism.

What is the significance of Iceland's geothermal energy in its economy?

How does Iceland's cost of living compare to that of Norway and Denmark?

What was the state of Iceland's economy in 1990, and how has it changed since then?

What challenges does Iceland face due to its reliance on tourism?