Weekly bulletin 22 January 2024

Total government expenditure on domestic research and development (R&D) was 2.7% of GDP in 2022. This is slightly higher than the EU average yet lower than in countries like Denmark, Finland, Sweden and Germany.

22 January 2024

The week ahead

On Wednesday, Statistics Iceland is set to publish the Wage Index for December.
Thursday is an interest rate decision day for the European Central Bank and the US is set to release preliminary national accounts for the fourth quarter of 2023.

Image of the week

Total government expenditure on domestic research and development (R&D) in 2022 amounted to ISK 100 billion, or the equivalent of 2.7% of GDP, according to figures from Statistics Iceland last week. In Western Europe, this ratio is highest in Belgium, followed by Sweden. The ratio is also higher in Finland and Denmark, but Iceland exceeds the EU average slightly.

Highlights of the previous week

The housing price index rose by 0.5% between months in December. The 12-month increase of the index measured 4.5% and has risen steadily from a low point of 0.8% in July 2023. In addition to the housing price index, the Housing and Construction Authority (HMS) released the rent index and its monthly report on the real estate market.
The Central Bank of Iceland (CBI) published payment card turnover figures for December. Total household payment card turnover was ISK 114 billion in December, contracting by 1.5% between years at fixed prices. Household payment card turnover has now contracted nine months in a row between years. Private consumption is not unlikely to have contracted in the fourth quarter of last year, as in the third - Statistics Iceland publishes the national accounts for the fourth quarter on 29 February.
The CBI posted a press release on the foreign exchange market, exchange rate developments, and international reserves in 2023.
Inflation measured 4.0% in Britain in December. This figure was higher than expected and this was the first annual increase between months since February 2023.
On the stock market, Sjóvá published an earnings warning and Marel notified the stock exchange that the company had received an updated non-binding MoU from the John Bean Technologies Corporation for a potential offer for all shares in the company.
On the bond market, Reitir issued bonds, Ölgerðin sold bills and Municipal Credit Iceland cancelled its scheduled bond auction.

Statistics and market data

Weekly bulletin 22 January 2024 (PDF in Icelandic)

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