Part 4/9:
The fallout extended well into the subsequent years. Iceland saw its debt-to-GDP ratio peak at 130% in 2011, leading to a request to join the EU that was temporarily stalled as Europe grappled with multiple economic crises. Yet, in a remarkable turnaround, by 2016, Iceland had managed to revert its per capita GDP back to pre-crisis levels and dramatically reduce its debt-to-GDP ratio.
What facilitated this swift recovery? Much of it stemmed from Iceland's unique geographical and economic position. While still vulnerable to various forms of economic volatility, Iceland leveraged its limited resources—and energy was at the forefront.