FOREIGN TRADE IN SERVICES OF ICELAND: IMPACT OF THE COVID-19 PANDEMIC
Abstract
The article is devoted to the study of the structure of Iceland’s foreign trade in services in the period before, during and after the global crisis caused by the coronavirus pandemic to highlight the key characteristics that need to be taken into account when building a policy for the development of the national economy. The COVID-19 pandemic has shown that sudden and strong external circumstances can make adjustments to the world economy, especially such a delicate part of it as international trade in services. Therefore, the analysis of this impact on the economy of the country, a significant share of foreign trade turnover of which are services, cannot be doubted. Quantitative and comparative analysis methods were used to characterize the dynamics of Iceland’s foreign trade indicators, such as exports, imports and balances in general, and in terms of goods and in terms of services in particular, as well as shares of goods and services in the country’s exports and imports. In addition, these methods were used to find out absolute and relative changes in the structure of foreign trade in services in 2019, 2020 and 2021. And to explain the possible reasons for these changes, the method of abstract logical analysis was also used. Based on the conducted research, conclusions were made about the effectiveness of the structure of foreign trade of Iceland, as well as the expediency of orienting a national economy to the provision of one or two, or three interrelated types of services. In the study process, bar-line combination charts were used to display the dynamics of Iceland’s exports, imports and foreign trade balances in general, and in terms of goods and in terms of services in particular; line charts – to display the dynamics of shares of goods and services in the country’s exports and imports; a table – to compare the structure of Iceland’s foreign trade in services in terms of value (in billions of ISK) and relative terms (as a part of the whole, in percentages) in 2013 and 2019-2021. This study will allow us to take a fresh look at the issue of the formation of the structure of the national economy and take into account the need for diversification and reasonable balancing of the country’s foreign trade activities.
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