Statistics Iceland Predicts 2,9 Percent Decrease in GDP Skip to content

Statistics Iceland Predicts 2,9 Percent Decrease in GDP

By Iceland Review

It appears that 2010 will see a 2,9 percent decrease in GDP, reports. On the other hand, it is predicted that economic growth will be positive beginning in the year 2011 and throughout, it is assumed that large scale industry construction will begin in full force and private consumption will not be reversed any further.

Photo by Páll Stefánsson.

The statistics are a part of the economic forecast of Statistics Iceland until the year 2015, as published on its website. It is assumed that decrease in private consumption will be stopped, even if the purchasing power of the disposable income is still decreasing.

Public consumption will continue to retract until 2012. After that, the recession will slow and the economy will begin to see growth in the year 2014. It is assumed that economic predictions of the government and the IMF are likely to come true.

Inflation will decrease and approach the inflation goals of the Central Bank in the latter part of the period. It is assumed that wage contracts will be completed before the end of the year, without great increase in pay. Unemployment will continue to decrease from the year 2011, when economic growth will become positive.

Surplus of trade and service with foreign countries will be great throughout the period but the balance on current accounts will nonetheless be unfavorable.

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