Financial managers of Icelandic companies are more optimistic about their company’s future than they were last spring, according to a survey conducted by Deloitte and reported on by Viðskiptablaðið. Around a fifth of respondents reported that their company’s revenue is now similar to or higher than before the pandemic began.
The survey is conducted internationally twice a year by Deloitte. The last survey was conducted in March, when many parts of the world were experiencing their first wave of COVID-19. “The situation then was very dark and the results now indicate that the situation is not good. However it is gratifying to see that there is a lot less pessimism than last spring,” stated Lovísa A. Finnbjörnsdóttir, head of Deloitte Iceland’s financial consulting department.
Tourism CFOs Most Pessimistic
CFOs of companies in the commerce, services, and seafood industries were most optimistic while those is tourism were the most pessimistic. “It’s interesting how the difference is huge between industries,” Lovísa stated, though she said it was not surprising that export companies reported more optimism than others. Though some companies in the commerce industry had suffered, it was clear that Icelander’s consumption was easing the blow.
Likely no one is surprised that Icelandic tourism companies report the least optimism about their financial situation in the coming months. Three out of four financial managers of tourism companies said they were pessimistic about the future and that their income stream would not return to previous levels before the third quarter of 2021 at the earliest.
Nine per cent of respondents stated they did not trust themselves to estimate when the economic impact of the pandemic would begin to ease. Four our of five said their main goal in the near future was to streamline operations, while digital solutions were next on the list of priorities. Respondents also expressed more positivity toward the idea of taking loans, particularly as interest rates have lowered.