Economic Recovery Becomes Stronger - The Reykjavik Grapevine

Economic Recovery Becomes Stronger

Published August 18, 2010

A number of factors over the past year indicate that Iceland’s economic recovery continues to get stronger.
Earlier this summer, Statistics Iceland reported that inflation will drop from 6% to 4% by the end of the year. It has, in fact, been dropping steadily since early this year.
Furthermore, unemployment has been dropping overall since the spring, and Vísir now reports that the first seven months of this year saw a 21% increase in help wanted ads.
Adding further to this is the latest report from the Central Bank, which states that the economic bounce-back has already begun. Most interestingly of all, they attribute this in part to an increase of investment money, despite delays in heavy industry projects.
Earlier this year, the International Monetary Fund predicted that unemployment will continue to fall, and hit 3% by 2014. They have also predicted a fully-balanced budget to be achieved around the same time.


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