According to the latest economc forecast by Statistics Iceland, Iceland’s Gross Domestic Product of Iceland will increase by 4% in 2016. Growth will slow somewhat in 2017, but still remain a robust 3.1% that year, and remain at a healthy 2.5-2.7% for the following four years. An economist at the University of Iceland believes this projection is too low.
A key driver for economic growth is the continued expansion of the tourism industry. The most recent projections for the increase in tourism envisions 23% more foreign visitors in 2016 than 2015. This growth is placing growing strains on the Icelandic labour market, as we have reported on numerous occasions.
Read more: Labour shortage looming in the tourism and construction industries in Iceland
Ásgeir Jónsson, an associate professor of economics at the University of Iceland, told the local newspaper Morgunblaðið that the projections of Statistics Iceland are too conservative. Ásgeir argues that the tourism boom will completely wipe out unemployment, pushing it well below 2% and nearing 1% by the summer.
According to the latest economc forecast by Statistics Iceland, Iceland’s Gross Domestic Product of Iceland will increase by 4% in 2016. Growth will slow somewhat in 2017, but still remain a robust 3.1% that year, and remain at a healthy 2.5-2.7% for the following four years. An economist at the University of Iceland believes this projection is too low.
A key driver for economic growth is the continued expansion of the tourism industry. The most recent projections for the increase in tourism envisions 23% more foreign visitors in 2016 than 2015. This growth is placing growing strains on the Icelandic labour market, as we have reported on numerous occasions.
Read more: Labour shortage looming in the tourism and construction industries in Iceland
Ásgeir Jónsson, an associate professor of economics at the University of Iceland, told the local newspaper Morgunblaðið that the projections of Statistics Iceland are too conservative. Ásgeir argues that the tourism boom will completely wipe out unemployment, pushing it well below 2% and nearing 1% by the summer.
