It has been very interesting couple of weeks in Iceland. There has been a lot of talk in the media about the Icelandic Banks and almost everyone predicting a certain doom to the growing economy. All this media attention has made me start asking why is there such a focus on Iceland? I dont´know the answer to that question, but some have even gone to the extent of saying it is a danish consipiracy to bring down the Icelandic growth engine :), which is it young entreuprenuers who have been buying up businesses in other countries.
It is imperative for any business in Iceland to start thinking global, given the small size of the local market. If I had to put a theory around this, I would say the biggest export out of Iceland is “Business Boldness”. Icelanders are very bold when it comes to taking over challenges and running businesses and that is the reason for such an exploding economy.
The central bank raised the interest rate by 0.75% to 11.5% to cut the inflation growth which stands at about 4.5%. The media has been intrepreting this as a sign of panic by the central bank. I don´t know the reason behind the move now, but I think it should have been done at the beginning of the year.