16 May 2022 - Landsbankinn
Last week’s highlights
- Registered unemployment was 4.5% in April, compared to 4.9% in March.
- The Icelandic Tourist Board published departures from Keflavík International Airport. Foreign passengers departing via Keflavík International Airport were 103,000 in April and Icelanders numbered 58,000.
- S&P Global Ratings affirmed Iceland‘s ratings at ‘A/A-1’.
- Sýn, Kvika banki and Eimskip published Q1 earnings.
- PLAY reported an over 50% increase in passengers in April from previous month.
- Total turnover of domestic payment cards was ISK 102.1 bn in April 2022, with debit card turnover accounting for ISK 45.0 bn and credit cards ISK 57.1 bn.
The week ahead
- Reitir and Iceland Seafood will publish earnings.
- On Tuesday, Registers Iceland will release the capital area housing price index for March.
- On Wednesday, the CBI will release the minutes of the last meeting of the Monetary Policy Committee.
Markets and Economic Overview
You may also be interested in
8 July 2024
High interest rates have encouraged savings and detracted from demand in the economy. Household deposits had grown by 20% in May this year from the same month in 2023, according to the Central Bank of Iceland’s (CBI) newly published Hagvísar. Demand deposits have increased most.
1 July 2024
The consumer price index (CPI) rose by 0.48% in June. As a result, inflation measured 5.8%, down from 6.2%. Turnover based on March-April VAT reports contracted by 4.6% in real terms and the wage index rose by 0.2% in May, according to figures released by Statistics Iceland last week.
24 June 2024
The housing price index was up by 1.4% in May and the rental price index by 3.2%, according to figures published last week. While the Bank of England maintained an unchanged policy rate, the Swiss National Bank lowered its rate by 0.25 percentage points. Of most interest domestically this week is without doubt the CPI, to be published by Statistics Iceland on Thursday.
18 June 2024
Last week, we saw the publication of unemployment figures, tourist numbers and domestic payment card turnover in May. The US Federal Reserve kept its policy rate unchanged. Later today, the Housing and Construction Authority (HMS) releases the housing price index.
10 June 2024
The European Central Bank (ECB) lowered its policy rate last week. Stronger labour market figures from the US than generally expected increase the likelihood that the Federal Reserve will postpone initiation of rate cuts.
3 June 2024
Domestic product contracted by 4% in the first quarter of the year and inflation measured 6.2% in May, slightly higher than predicted.
13 May 2024
Household deposits have grown considerably alongside rising interest rates. This has resulted in greatly increased interest income for households, in fact in excess of interest expenses.
6 May 2024
A majority of the market now consider the monetary policy stance too tight. This opinion has become much more pervasive than in April, in response to steadily growing restraint alongside receding inflation and unchanged interest rates.
29 April 2024
Economic growth will be limited in coming years according to our newly published macroeconomic forecast up to and including 2026. We forecast 0.9% growth this year, 2.2% next year and 2.6% in 2026. We expect inflation to recede down to 5.5% by the fourth quarter of this year. A rate-cutting cycle will begin in October, so our forecast, and we expect the economy to pick up speed alongside falling interest rates.
29 April 2024
Landsbankinn Economic Research forecasts limited economic growth this year. Inflation remains persistent and rate cuts aren’t expected until this fall.