There could be some reasons that may lead to the Icelands success The country

There could be some reasons that may lead to the

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There could be some reasons that may lead to the Iceland’s success. The country has effectively exploited its natural resources to push up the fishery industry. In the service sector, there was an impressive increase in the tourism industry contributing to the country’s GDP. The recovery of the domestic banking system and domestic debt restructuring are also some other reasons for the country’s budget surpluses and Iceland’s improved competitiveness (Mingels, 2014). However, although the economy has recovered Iceland should be aware of possible risks that may negatively the economy in future such as: high public and external debt, ineffective capital controls, slow demand, deflation and uncertain external environment (Hammar, 2015). N o Indicators 200 5 200 6 200 7 200 8 2009 2010 2011 2012 2013 2014 201 5 201 6 1 GDP (bill.USD) 16.8 17.1 21.5 17.6 12.8 3 13.2 6 14.6 7 14.2 3 15.3 9 17.0 7 2 Inflation (%) annual 4.0 9.0 4.0 11 8.0 5.4 4.0 5.2 3.9 2.1 3 Unemployme nt (%) annual na na na na na 8.1 7.4 5.8 4.4 3.6 4 Public Debt (% to GDP) na na na na na 88.1 95 92.5 85.3 80.8 5 Trade Balance (USD billion) na na na na na 0.7 0.5 0.3 0.0 -0.3 Table 4 Iceland’s Macroeconomic Indicators (FocuseEconomics, 2015) IMF and Its Financial Assistance to Hungary (2008) After a strong economy growth in 2007 and 2008, Hungary entered into recession from 2008 and needed the IMF’s financial supports. According to the table 5, the nominal GDP value has increased by 21% in 2007 and 13% in 2008. But in 2009, it reduced sharply. The country disclosed its ineffective fiscal policies and poor financial system activities. In November, 2008 the IMF has passed an amount of $15.7 billion loan for Hungary to help the country solve its recession problems. Granting the loan, the IMF expected
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Hungary to address two important things: a substantial fiscal adjustment to reduce the government debt and an improvement of the financial system effectiveness (IMF, 2008). So far, the effect of the IMF’s financial assistance is not clear with the up-and-down fluctuation of nominal GDP value from 2009 to 2014 (table 5). Perhaps the impressive success of the country is reduction of the unemployment rate from 11.2% in 2010 down to 7.7% in 2014. And the country remains its positive trade balances through the years. The public debts as percentage to GDP reduced not much and remained at high levels. No Indicators 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 GDP (bill. USD) 111.9 114.2 138.5 156.6 129.3 129.6 139.4 126.8 133.4 137.1 2 Inflation (%) annual 2 4 5 5 4 2 2 3 0.5 0.6 3 Unemployment (%) annual na na na na na 11.2 11.1 11 10.1 7.7 4 Public Debt (% to GDP) na na na na na 80.9 81 78.5 77.3 76.9 5 Trade Balance (USD billion) na na na na na 7.3 9.8 8.5 8.7 8.5 Table 5 Macroeconomic Indicators of Hungary (FocusEconomics, 2015 ) IMF and Its Financial Assistance to Ukraine (2014) Ukraine has experienced economic growth from 2010 to 2013 with a positive performance in macroeconomic policies (table 6): GDP per capita kept increasing, unemployment continuously reduced; inflation reduced; public debts as percentage of GDP were kept around 40%. However all thing have changed in 2014 when many economic indicators went to the opposite side (table 6): nominal GDP value reduced by nearly 28%; inflation increased to two digits of 12.1%; unemployment increased sharply to 9.1% as
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