Importation of goods increased by more than a third last month in terms of Icelandic krona, NFS reports. This is largely due the weakening of the krona, but it also appears that the nation is still spending wildly despite warning bells.
According to interim conclusions on the reclaiming of VAT, goods imports in March were worth ISK 33 billion. This is a considerable increase, 36%, from the preceding month, when goods imports accounted for ISK 22 billion.
Despite interest rate increases that are designed to discourage consumer spending, it is unclear whether Icelanders have been spending on credit, or whether they have been able to spend using their current financial standing.