Experts: Iceland should focus on renewable energy exports

A major financial consulting group has said that Iceland’s ongoing recovery will remain strong if the country focuses on exporting green energy products.

The news came on via McKinsey & Co, which said in a report that Iceland faces the risk of falling back into external deficit if Reykjavik does not take steps to address the nation’s remaining economic shortcomings. The group said that this could mean that the government may have to continue to delay the removal of capital controls put in place following the country’s 2008 banking fiasco.

The report’s authors said, “With this outlook, Iceland could remain trapped in a vicious cycle of sustained capital controls, high capital cost, low investments and low economic growth,” Reuters reports.

But the firm said that the country’s geographical position and rich supply of natural resources make it a prime candidate for the next global centre of green energy.

The report said, “Iceland should act swiftly to substantiate and eventually realise this potential. Clean Icelandic energy can contribute to renewable targets in Northern Europe, but delays will invite competition from other renewable energy technologies such as wind energy and solar power, which have rapidly reducing cost levels.”