Iceland's Prime Minister says depression not imminent Skip to content

Iceland’s Prime Minister says depression not imminent

Prime Minister Halldór Ásgrímsson says an economic depression is not imminent in Iceland, reported Icelandic National Broadcasting Service, RÚV.

The Prime Minister criticized “those who claim a change in economic policy is needed.” He said the government needed to stay on course, not change it.

The Prime Minister said the government’s policy of privatization, lower personal and corporate taxes, fiscal prudence, increased mortgage lending and investment in heavy industry and energy generate had achieved “substantial results” for the nation.

The Prime Minister mentioned that jobs had increased by 20 thousand since 1995. He mentioned criticism voiced by foreign financial institutions and said that Iceland was one of the most competitive countries in the world. He referred to the recent report by the Ministry of Finance and its predictions for approximately 2 per cent growth next year and 2.5 per cent 2008-2010. Even if this was slower growth than Iceland had experienced over the last few years, it was still greater than that of most European countries in recent years.

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