News
Iceland’s Economic Growth Not As Great As It Seems

Iceland’s Economic Growth Not As Great As It Seems

Published February 22, 2013

The capital controls that have helped to stabilize the króna in the wake of the 2008 collapse and assist Iceland’s economy in achieving some growth are both a blessing and a curse.
Reuters reports that the same controls that have helped Iceland to sustain a 2% growth – greater than that being experienced throughout continental Europe – are weighing down the country’s big ticket companies, like gaming powerhouse and Eve Online creators CCP, which operate on a global scale and need to freely conduct business with investors operating in foreign currencies.
“The economic remedy has now become part of the problem,” said CCP CEO Hilmar Pétursson. “We are not building the company as fast as we could from a global perspective.”
The capital controls make it very difficult for the company to purchase the foreign currency it needs and to conduct business with equity investors abroad.
While 2% growth is admirable compared to Iceland’s European peers, it is still well below the 4.5% the International Monetary Fund (IMF) had predicted for the country in 2011 through 2013, due, in part, to inflation being stubbornly high and for ongoing intervention from the Central Bank to keep the currency afloat.
Reuters notes that the parliamentary elections scheduled for April are only adding to the uncertainty in the country, as voters are growing weary of austerity. “Polls show centre-right parties [Independence Party and Progressive Party] widely seen as responsible for the crisis may replace a leftist government.”



News
Many Icelanders Text While Driving

Many Icelanders Text While Driving

by

Almost all Icelanders believe texting while driving is wrong, but about a third of them do it anyway. RÚV reports

News
Kári Apologises For Calling PM “Obese, Two-Year-Old Little Boy”

Kári Apologises For Calling PM “Obese, Two-Year-Old Little Boy”

by

CEO of deCODE Kári Stefánsson has apologised for remarks he made about the Prime Minister in a new Grapevine interview.

News
Charges Dropped Against One Of Accused In Hlíðar Rape Case

Charges Dropped Against One Of Accused In Hlíðar Rape Case

by

Prosecutors have declined to pursue charges against one of the accused in an infamous case of rape in the east

News
State Ordered To Pay Damages For False Imprisonment

State Ordered To Pay Damages For False Imprisonment

by

One of the accused in a notorious raid of an illegal casino has been awarded damages for false imprisonment following

News
Emiliana Torrini To Perform At Aldrei Fór Ég Suður

Emiliana Torrini To Perform At Aldrei Fór Ég Suður

by

The famed singer/songwriter will be performing at the Westfjords music festival for the first time. Organisers of the Aldrei fór

News
Iceland Devoting Half A Billion ISK To Syrian Refugees

Iceland Devoting Half A Billion ISK To Syrian Refugees

by

Prime Minister Sigmundur Davíð Gunnlaugsson announced in London last night that Iceland would be putting half a billion ISK towards

Show Me More!