A new study of economic growth in Iceland since 2008 reveals that Reykjanes peninsula, NW Iceland and South Iceland have grown more than the capital region. The only region of Iceland which has seen its economy contract since 2008 are the Westfjords.
The report (pdf) finds that tourism is a major reason for strong growth in NW Iceland, the Reykjanes peninsula, where the Keflavík international airport is located, as well as the popular tourist attraction the Blue Lagoon, and South Iceland, which is home to many of the most popular tourists destinations in Iceland.
Uneven recovery
The study, which is prepared by the University of Iceland and the Regional Development Authority found that the economy of Reykjanes peninsula in south west Iceland, the north west and the south of the country grew by 8% between 2008 and 2015. The GDP of Iceland grew by 4% during the same period.
The years 2008-2015 include the economic recession which followed the financial crash of 2008, as well as the recovery which began in 2010: The economy of Iceland contracted by 6% in 2009 and 4% in 2010.
Read more: Population of northern Westfjords rebounds, grows for first time in decades
The study reveals that the effects of 2008 were very unevenly spread across Iceland. The worst impact in 2009 was felt in the Reykjanes peninsula in the south west, where the local economy shrank by 11% and in east Iceland where the contraction was 16%. While the recovery was very uneven, with some years characterized by very rapid growth and others by slower growth or stagnation, most areas outside Reykjavík also showed a more robust recovery than Reykjavík.
The one notable exception are the Westfjords, where the local economy has shrunk by 6% since 2008.
A new study of economic growth in Iceland since 2008 reveals that Reykjanes peninsula, NW Iceland and South Iceland have grown more than the capital region. The only region of Iceland which has seen its economy contract since 2008 are the Westfjords.
The report (pdf) finds that tourism is a major reason for strong growth in NW Iceland, the Reykjanes peninsula, where the Keflavík international airport is located, as well as the popular tourist attraction the Blue Lagoon, and South Iceland, which is home to many of the most popular tourists destinations in Iceland.
Uneven recovery
The study, which is prepared by the University of Iceland and the Regional Development Authority found that the economy of Reykjanes peninsula in south west Iceland, the north west and the south of the country grew by 8% between 2008 and 2015. The GDP of Iceland grew by 4% during the same period.
The years 2008-2015 include the economic recession which followed the financial crash of 2008, as well as the recovery which began in 2010: The economy of Iceland contracted by 6% in 2009 and 4% in 2010.
Read more: Population of northern Westfjords rebounds, grows for first time in decades
The study reveals that the effects of 2008 were very unevenly spread across Iceland. The worst impact in 2009 was felt in the Reykjanes peninsula in the south west, where the local economy shrank by 11% and in east Iceland where the contraction was 16%. While the recovery was very uneven, with some years characterized by very rapid growth and others by slower growth or stagnation, most areas outside Reykjavík also showed a more robust recovery than Reykjavík.
The one notable exception are the Westfjords, where the local economy has shrunk by 6% since 2008.
