Words by

Ingibjörg Rósa Björnsdóttir

Purchasing power in Iceland dropped by 0.8% per capita in 2012 compared to the previous year.

At the same time, disposable income of the household sector increased by 4.9% and individuals’ disposable income increased by 4.4%, according to Statistics Iceland.

Total income of Icelandic households grew by 4.7% between 2011 and 2012. Thereof was a 6.3% increase in total earned income, 10.7% increase in total capital gain and 1.6% increase in operating profit of single proprietorships.

However, total expenditure rose by 4.4% during the period.