Travel Reference
In-Depth Information
The fishing industry has always been vital to Iceland, although it's had its ups and
downs - quotas were reduced in the 1990s so stocks could regenerate after overfishing.
The industry went into recession, leading to an unemployment rate of 3% and a sharp drop
in the króna. The country slowly began a period of economic regeneration as the fishing
industry stabilised. Today the industry still provides 40% of export earnings, more than
12% of GDP, and employs nearly 5% of the workforce. It remains sensitive to declining
fish stocks.
In 2003 Iceland resumed whaling as part of a scientific research program, despite a
global moratorium on hunts. In 2006 Iceland resumed commercial whaling, in spite of
condemnation from around the world. Hunting of minke whales and endangered fin
whales continues, drawing further international rebukes.
One of the most famous essays on Iceland's financial crash of 2008 is Michael Lewis'
'Wall Street on the Tundra', written for
Vanity Fair
in 2009. Search for it online - it's a
cracking read (and not very complimentary towards Iceland). Follow it with 'Lost', from
The New Yorker
(March 2009).
Financial Crash & Beyond
Iceland's huge dependence on its fishing industry and on imported goods means that the
country has always had relatively high prices and a currency prone to fluctuation. Its exact
vulnerability was brought into focus in September 2008, when the global economic crisis
hit the country with a sledgehammer blow. Reykjavík was rocked by months of fierce
protest, as the then-government's popularity evaporated along with the country's wealth.
Prime Minister Geir Haarde resigned in January 2009. His replacement, Jóhanna Sig-
urðardóttir, hit international headlines as the world's first openly gay prime minister. Her
first major act was to apply for EU membership, with the eventual aim of adopting the
euro as the country's new currency, in an effort to stabilise the economy. EU membership
was then (and continues to be now) a contentious issue.
Iceland again hit global headlines in April 2010, when the ash cloud from the eruption
under Eyjafjallajökull ice cap shut down European air traffic for six days, causing travel
chaos across much of the continent. In comparison to the Eyjafjallajökull eruptions, the
Grímsvötn volcano, which erupted the following year, was a mere trifle - its ash cloud
only managed to cause three days of air-traffic disruption. In 2014, Bárðarbunga's rum-
