OECD Predicts Economic Growth in Iceland Skip to content

OECD Predicts Economic Growth in Iceland

The specialists of OECD (Organization for Economic Cooperation and Development) presented a new report on Iceland’s economic outlook yesterday morning. They predict a three percent economic growth in light of increased consumption and investment.

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Fishing in Iceland. Copyright: Icelandic Photo Agency.

However, OECD warns authorities against making changes to the fishing quota system, ruv.is reports. Two controversial quota bills are currently being processed by parliament, assuming a lapse of quota ownership, among other measures.

OECD claims no measures can be taken to make the quota system less unjust, explaining that while the government reasons that the distribution of quota was unfair when it was first established, most current quota owners bought it fairly.

The current quota system is praised in OECD’s report, which states that thanks to the system, which is based on scientific consultancy and the distribution of fishing allowances, Icelanders have been successful in controlling fisheries.

To enable a political reconciliation on the quota system, the government should raise the charge for the use of natural resources, OECD advises, however, not to such an extent that it becomes a heavy burden for seafood companies or ruins the quota system.

Furthermore, the government should issue a lower quota than the maximum fishing tolerance issued by the Icelandic Marine Research Institute to maximize the value of the resource, the report says, stressing that Iceland’s strength lies in its natural resources.

Click here to read more about the quota bills and here to read other recent economic news.

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