Photo: Wikimedia Commons
Iceland can thank its growing economy in part to strength in its mackerel exports, writes the Real-World Economics Review blog.The Northern European country grew by 3.1 per cent in 2011. According to a report from the European Union, “Merchandise exports hinge on the performance of two key sectors (fishing and aluminium).”
Icelandic fisheries have been catching mackerel at an extremely fast, but arguably dangerous pace.
While, Iceland’s economy is expected to continue to grow, recent sanctions on mackerel imports in Europe are a big risk. “Production limitations and subdued foreign demand would curb growth,” warns the European Union in a statement.