Navigating the economic consequences of the Russia-Ukraine conflict: A focus on Iceland’s response and opportunities for long-term stability and growth

Abstract

This paper presents a detailed analysis of the economic repercussions of the Russia-Ukraine conflict on the global economy, with a specific emphasis on its impact on Iceland. The study examines the disruptions in international trade, escalation in raw material prices, and the implications for various sectors and nations worldwide. The report also evaluates the effectiveness of the Icelandic government's response, including targeted financial aid packages, tax relief measures, and investments in renewable energy projects. Furthermore, it highlights the critical factors that will determine the success of these measures, such as diversification of trade partners, fiscal sustainability, and the uncertain trajectory of external developments. The paper underscores the necessity for continuous evaluation, adaptation of policies based on emerging data, and strategic planning focused on long-term economic stability and growth to navigate the economic consequences of the conflict and emerge stronger