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
Disclaimer
This review and/or summary is marketing material intended for information purposes and does not constitute financial advice or an independent financial analysis. The legal provisions that apply to financial advice and financial analysis do not apply to this content, including the ban on transactions prior to publication. The review is based on publicly available information from parties that Landsbankinn deems reliable yet the Bank cannot independently guarantee the accuracy of the information. Landsbankinn is not liable for any loss that may result from use of the information contained herein.Information about the past performance of financial instruments or indices show nominal returns, unless otherwise mentioned. If results are based on foreign currencies, returns may increase or decrease as a result of currency fluctuations. Past returns are not necessarily an indication of future returns. Detailed information about the historic performance of financial instruments and indices is available on Landsbankinn’s website, including on returns for the past 5 years.Securities transactions involve risk and readers are encouraged to familiarise themselves with the Risk Description for Trading in Financial Instruments and Landsbankinn’s Conflict of Interest Policy on Landsbankinn’s website.Landsbankinn is licensed to operate as a commercial bank in accordance with Act No. 161/2002, on Financial Undertakings, and is subject to supervision by the Financial Supervisory Authority of the Central Bank of Iceland (www.fme.is).You may also be interested in
15 April 2024
Inflation will recede somewhat in April, from 6.8% to 6.1%, only to remain fairly stable in the coming months and stand at 5.9% in July, according to our newest inflation forecast. Despite the dent interest rate increases have made in demand, the economy is still going fairly strong and there is tension in the labour market. Inflation expectations remain well above target.
8 April 2024
Around 14% more tourists travelled through Keflavík International Airport in February of this year than the same month of 2023. The duration of stays is shorter than before, with registered overnight stays declining by 2.7% between years in February.
18 March 2024
Figures for 2023 indicate that international tourists had fewer overnight stays in Iceland on average as compared to 2022 yet spent more per day than previously.
11 March 2024
The three large export sectors, tourism (ISK 600 bn), aluminium and aluminium products (ISK 320 bn) and seafood products (ISK 350 bn), were behind 70% of total export value in 2023. Other export created value in the amount of ISK 580 bn, more than either seafood products or aluminium and aluminium products.
4 March 2024
After almost two years of very robust economic growth in the post-pandemic era, the economy slowed down considerably as 2023 progressed.
26 Feb. 2024
There was a continuous surplus on foreign trade in the years 2010 to 2019. This turned to a deficit in 2020 and 2021 during the pandemic. Foreign trade has been more or less balanced since.
19 Feb. 2024
The composition of the labour market has changed somewhat since 1991. Managers, specialists, professionally qualified staff and service and retail sector employees have grown in number while office workers, farmers and fishermen have grown fewer.
5 Feb. 2024
Inflation has decreased in recent months and, in addition, fewer components have increased by over 10% in the past 12 months.
29 Jan. 2024
Last year, wages increased by 10% on average between years. Despite much higher wages, their purchasing power, i.e. the goods and services that can be purchased for wages, only grew by 1%.
15 Jan. 2024
Just over 2.2 million tourists departed from Leifsstöð International Airport in 2023, in line with our October forecast. In that same forecast, we anticipate 2.3 million tourists in 2024. The year 2023 is the second largest tourist year from the beginning, only topped by 2018, when 2.3 million travellers visited Iceland. This past year only just exceeded 2017, which was previously the second largest tourist year.