Friday May 20, 2022

Iceland: levn energi z drsn prody, ale i vysok zadluenost

Is it worthwhile to include shares from the Icelandic stock exchange in the investment portfolio? Take a look at the strengths and weaknesses of the economy of this republic.

GDP per capita and about 54,000 USD. In the area of ​​competitiveness, the country will occupy a fourth city. This is a comparison of the simplicity / complexity of the process of founding a company.

Live energy
Life in Iceland is largely determined by geographical conditions. Islanan is trying to make the most of its sales sources. They basically have only water available. In the local conditions, this activity of glaciers and tectonic activity at the interface of the Eurasian and North American lithospheric plates is abounding in enormous energy.

Waterfalls and thermal springs are a tip for Iceland. Firstly for tourism, but especially for the production of electricity and heat. More than 90% of housing units are heated by hot water and hot springs. In this way, the glasses in which various fruits, even bananas, are grown are harvested. You may not know it, but Iceland is probably the largest bann producer in Europe (unfortunately I could not verify this information).

Very efficient fishing
The farm is covered by the specific activities of fishing, shipbuilding and repair, clay making and finance. There is no need to explain fishing, it is an island with cold shallow waters, in which many fish live. The ship? You will probably have a historical tradition of it since the time of the Viking.

Iceland is the 13th fishing power. At first glance dn extra result. But try to see how many Icelanders there are about 300 thousand, about the size of Ostrava. Stle se vm zd tinct msto na svt slab? Can you imagine that Ostrava would produce 1.3 million tons of fish? In addition, official Icelandic statistics indicate that 3,500 professional fish are employed in the fishery. So this goes to work efficiency.

Clay and fish thnou export
Iceland specializes in the production of clay thanks to sufficient water resources and cheap electricity. This is one of the most demanding production processes, first for water and energy. In recent years, Iceland has expanded its production capacity. One ob hydroelectric and clay power plant complex is currently under construction at the entrance to the island.

Fish accounts for half of exports, giving a quarter then the interest of clay. Overall, cars lag behind imports. In recent years, especially the import of equipment for the aforementioned hydroelectric and clay power plants. This brings food, cars and most consumer goods.

The economy is dawning, but it is slowing down
In 2007, the GDP growth rate slowed to around 1% (GDP grew by 4.2% in 2006). The years 2004 – 2006 were exceptionally due to large investments around the construction of the hydroelectric and clay power plants. Inflation of 4.9% (unrevised data) has thus significantly exceeded the inflation limit of 2.5% set by the central bank.

With Iceland’s unemployment problems, it has been around 1% for a long time. For this reason, Iceland has decided to liberalize its labor market to the new EU member states. In the last two years, there has been a sharp increase in the number of foreign workers, especially the Poles, who now make the largest national name in Iceland.

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