Posts Tagged ‘Recession’
Monday, May 10th, 2010
The Icelandic cabinet met last night in Reykjavik to discuss the nation’s finance and the proposed merger of several ministries.
“This is just a work meeting which will cover national finances and the budget, preparation, and where we stand with regard to big and vital projects,” Finance Minister Steingrimur J. Sigfusson told reporters on the way in to the unusual Sunday night meeting.
Government spending targets are going well according to plan, Sigfusson said; adding that interest costs are lower than had been anticipated. “But when it comes to the income side, some are on target and others below, now we need to address those and (adapt) the financial plan.”
Prime Minister Johanna Sigurdardottir said that the government’s finances are still in a very difficult state. “It is clear to see that the recession has been less severe than expected meaning that we hope to be able to sort this out – but it will be difficult,” she said.
Tags: Budget Preparation, Finance Minister, Government Spending, Interest Costs, Johanna, London Talks, Merger, Met, National Finances, Parliament, Prime Minister, Recession, Referendum, Regard, Reykjavik, Russia, Target, Targets, Unity, Vital Projects
Posted in Iceland | No Comments »
Wednesday, May 5th, 2010
The president of Iceland’s Directorate of Labour believes that there are positive signs ahead for the country’s jobs market and believes that unemployment reached its peak this winter. Unemployment has hit the young hardest of all.
Statistics Iceland published figures yesterday on employment over the last year. The figures showed that an average of 13,000 people were unemployed at any given time in the last year – which is 7.2 percent of the workforce.
Many more men were unemployed than women, which seems to have been caused by a severe recession in the construction industry.
When the employment market is split up by age, it is clear that unemployment has hit the young worst, with 16 percent jobless in the lowest age bracket.
The head of the Directorate of Labour said that unemployment seems to be going down and added that he hopes the soon-to-be-released April figures will underline that fact.
Tags: 19 Years, Age Bracket, Construction Industry, Employment Market, Jobs, Labour, Outlook, Positive Signs, President Of Iceland, Recession, Statistics, Unemployment Figures, Unemployment Rate, Workforce
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Thursday, April 22nd, 2010
The IMF says there are increasing signs that Iceland’s recession, although deep, will not be as harsh as feared and economic growth is expected to start again some time this year, despite a predicted 3 percent recession in 2010 as a whole.
These predictions come from an IMF report issued following the fund’s second review of its Iceland recovery package, which took place last week. The report includes growth forecasts of 2.3 percent next year, 2.4 percent in 2012, 2.6 percent in 2013 and 4 percent in 2014.
This seemingly good news also comes with positive unemployment predictions. The IMF predicts 9.7 percent unemployment in Iceland this year, 8.6 next year and three percent in 2014. Predicted inflation next year is 3.8 percent and down to 2.5 percent in 2014, mbl.is reports.
The IMF report says that the goals and objectives of its programme in Iceland are being met by itself and the Icelandic government and predicts and end to the recession this year. The report states, however, that private sector business debt and currency exchange restrictions are hampering the return to growth; but that the uncomfortable currency controls are helping in the essential task of stabilising the krona.
Tags: Business Debt, Currency Controls, Currency Exchange, Economic Growth, Goals And Objectives, Growth Forecasts, Iceland, Imf Report, Inflation, Krona, Met, Private Sector Business, Recession, Signs, Unemployment
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Monday, March 29th, 2010
Icelandic newspaper DV has been sold to a group of investors including its own joint editor.
DV.is reports that a group of investors passionate about independent and unaffiliated media has bought DV and DV.is from the Birtingur publishing house, owned by Hreinn Loftsson. A new limited company, DV ehf., has been established with enough capital to support the paper during the continued temporary recession in the advertising market.
The new company will ensure that owners’ influence on editorial content is unusually low – and part of this ethos is illustrated by a rule forbidding any single shareholder to hold more than 26 percent of the board’s vote, regardless of number of shares held. A clearer distinction between company management and editors has been put in place and a larger majority will now be needed to change important rules.
The change in DV’s ownership will take place on 1st April. The two editors Reynir Traustsson and Jon Trausti Reynisson and their current writing staff will remain and Reynir Traustsson is now one of the two largest owners. The other is Lilja Skaftadottir, an art dealer who lives in Iceland and France and has little previous experience in the Icelandic business market.
DV.is reports that a comprehensive list of shareholders will be published after Easter and that it will be available online as well.
DV is Iceland’s oldest surviving newspaper which has had a large succession of different owners and has been on the brink of bankruptcy since the 1990s. It is, however, doing comparatively well at the moment, with many in Iceland saying it has been the only newspaper willing to conduct real investigative journalism against implicated politicians and businessmen.
Tags: 1990s, Art Dealer, Bankruptcy, Brink, Business Market, Businessmen, Company Management, Distinction, Dv, Editorial Content, Editors, Ehf, Investigative Journalism, Limited Company, List Of Shareholders, Politicians, Publishing House, Recession, Shareholder, Succession
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Saturday, March 20th, 2010
Bilabud Benna, a Reykjavik car dealership, is today showcasing the brand new Porsche 911 Sport Classic.
Only 250 of the new 911 are being made and one of them is on show in Iceland at the Bilabud Benna premises on Vagnhofdi.
The Porsche 911 Sport Classic is a Porsche enthusiast’s dream, with a concerted effort to concentrate on what is great about Porsches of old; but also with no expense spared on modern technology and luxuries including ceramic brakes, ducktail rear wing and leather interior.
The brand new Porsche 911 Sport Classic can be seen today (Saturday) at Bilabud Benna, Vagnhofdi 23, Reykjavik between 12.00 and 16.00.
Tags: Brakes, Brand New, Car Company, Car Dealership, Concerted Effort, Iceland, Leather Interior, Luxuries, Modern Technology, New Porsche 911, Porsche, Porsche 911, Porsche Enthusiast, Porsches, Premises, Recession, Reykjavik, Sport Classic
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Wednesday, March 17th, 2010
The Norwegian Prime Minister Jens Stoltenberg has announced that his government will limit spending of oil revenue beginning in 2011 as a safeguard against overheating the economy and forcing interest rates up.
Norway has traditionally kept the majority of oil and gas revenue in a wealth fund offshore to avoid over-stimulation of the local economy. However, in reaction to the global economic crisis, the government has been forced to spend record amounts of petrodollars in order to keep the economy afloat.
The centre-left government led by Stoltenberg has not as yet revealed when a return to the oil-spending policy that limits the country to a 4 percent spend of oil wealth in a normal year may come about. Norway’s central bank, along with market analysts and the OECD have all criticised the 2009 and 2010 spending levels which are well over the limit according to an Interactive Investor report.
“We will start the work today, and it will be a budget which will contribute to keeping interest rates low and secure Norwegian jobs,” said Stoltenberg ahead of a three-day conference to discuss the fiscal plan for 2011.”We have said that we need to reduce the spending of oil money next year… How quick and how much we will (cut) each year, is what we will decide through this work,” he claimed.
A new, less expansive fiscal policy has been deemed necessary to avoid hampering an economic recovery and to ensure stability of the local currency–which is trading at its highest level since the start of the recession in August 2008.
Tags: Economic Recovery, Fiscal Plan, Fiscal Policy, Global Economic Crisis, Interactive Investor, Interest Rates, Investor Report, Jens Stoltenberg, Market Analysts, Norway, Norwegian Prime Minister, Oecd, Oil And Gas, Oil Money, Oil Revenue, Oil Wealth, Petrodollars, Recession, S Central, Safeguard
Posted in Iceland | No Comments »
Friday, January 29th, 2010
This March will see the closure of Blue Movie – the oldest sex shop in the world – due to financial difficulties. Supplying pornographic material since 1964, the Copenhagen store’s closure is not, as expected, because of the dominance of internet competition but rather from encroaching bike lanes.
Originally opened some four years before Denmark officially legalised pornography in 1968, Blue Movie at one time possessed the largest collection of adult stimuli in the world and to date has remained the oldest operating pornographic shop.
Currently in its 46th year of business the store has been situated at its location on Copenhagen’s Vesterbrogade Street since 1972. Owner-operator Jesper Strauss, who assumed control of the business from his father, denied suggestions that internet pornography had significantly impacted the shop’s trade according to the Copenhagen Post.
“When porn became easily accessible we changed the company profile so that we specialised in more unique interests…Even though you can get this on the internet many people won’t use their home computer for it. They’re afraid of viruses, spam and most of all, the wife finding it,” Strauss told newspaper reporters.
More influential in the decision to cease operations were rising shop rentals, the ongoing effects of the recession and the construction of new bicycle lanes.
“Customers can’t park anywhere since they built bike lanes everywhere and the effects of the recession can really be felt. You can’t skimp on milk and bread, but you can save on porn during times of crisis,” claimed Strauss, who hoped that the National Museum might preserve some part of the shop as a shrine to sexual predilection.
For collectors and enthusiasts alike, Blue Movie will be offering all stock at 60 percent off until the March 31st climax.
Tags: Bicycle Lanes, Bike Lanes, Climax, Closure, Copenhagen Post, Dominance, Enthusiasts, Financial Difficulties, Home Computer, Internet Competition, Internet Pornography, Jesper, Owner Operator, Pornographic Material, Predilection, Recession, Sex Shop, Stimuli, Strauss, T Park
Posted in Iceland | No Comments »
Wednesday, January 6th, 2010
The foreign ministers of Iceland and the United Kingdom will hold a telephone meeting this evening specifically to discuss the Icesave issue.
Iceland’s Foreign Minister Ossur Skarphedinsson said today he has been in near-constant contact with the Icelandic ambassador in London, who in turn has been in close contact with British politicians.
“During my conversation with [Foreign Secretary] David Milliband, I will lay strong emphasis on the fact that the President’s decision absolutely does not mean that we do not intend to honour our debts,” Skarphedinsson told Visir.is.
He said he also intends to mention that the Icelandic economy is currently in a much worse position than it might have been had the British government made less confrontational decisions at the start of the crisis in October 2008 and that the British government should take that into account in the decisions it takes from now on.
“I will then discuss with Milliband the fact that we need to work towards solutions for the deep ‘recession’ which now exists in our relations with the UK,” Skarphedinsson added. “These solutions need to be found using traditional diplomatic methods and not with blunt, unilateral statements.”
Tags: Ambassador, British Government, British Politicians, Close Contact, Constant Contact, Debts, Decisions, Economy, Foreign Minister, Foreign Ministers, Honour, Iceland Uk, London, Ossur, Recession, Secretary David, Uk Ministers, United Kingdom, United Telephone
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Thursday, December 24th, 2009
American car giant, Ford says it has come to an agreement on the sale of its Swedish car company, Volvo.
The purchaser is the Chinese car manufacturer Geely – and the contract is expected to be formally signed at the beginning of 2010.
Geely is China’s largest private sector car company and began life as a fridge manufacturer in 1997.
Ford, on the other hand, has been trying to sell Volvo since landing in financial difficulties due to the recession.
22,000 people work for Volvo, RUV reports.
Tags: American Car, Car Company, Car Giant, Car Manufacturer, China, Financial Difficulties, Ford, Geely, Private Sector, Purchaser, Recession, Ruv, Swedish Car, Volvo, Volvo Car
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Sunday, December 13th, 2009
15,000 light bulbs decorate the single best-dressed house in the south-western Icelandic town of Reykjanesbaer – but it’s not just one house: the entire neighbourhood is often called the Las Vegas of the North.
The homeowner, Gretar Olason orders all his decorations from the USA and takes a whole week to decorate his home.
Reykjanesbaer has been running an annual competition for residents’ outdoor Christmas decorations for the last 11 years and taxi driver Gretar Olason has been the most frequent winner, according to Visir.is. It is fairly safe to say already that he is going to win this year too because, despite the kreppa (recession), he has continued to improve his display. Olason’s Christmas lighting has increased from 10-12,000 light bulbs in previous years to 15,000 this year.
Is the Christmas decorating competition particularly fierce? “Yes, I would say so. I’m not doing this just for the competition though, as you can see. But when there’s a prize on offer, of course I want to win it,” Olason said.
He says he doesn’t give too much thought to how much this particular hobby costs, both in materials and electricity; but he turns the lights off every year on 6th January.
Olason says he particularly enjoys when people stop outside his house and says everybody is welcome to go and have a look.
Tags: 11 Years, Christmas, Christmas Decorating, Christmas Light, Christmas Lighting, Decorate, Display Lighting, Electricity, Las Vegas, Light Bulbs, Merry Christmas, Neighbourhood, Outdoor Christmas Decorations, Previous Years, Recession, Taxi Driver, Vegas Odds, Visir
Posted in Iceland | No Comments »
Tuesday, December 8th, 2009
The Icelandic state and municipalities were run at a deficit of more than ISK 100 billion in the first nine months of 2009. Recession in the country’s gross domestic product (GDP) has never been higher this decade.
Tags: Decade, First Nine Months, Gdp, Gross Domestic Product, Iceland, Isk, Municipalities, Recession, S Gross
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Tuesday, December 8th, 2009
New income tax increases proposed by Finnish Prime Minister Matti Vanhanen could result in those who earn over EUR 47,000 a year facing significant rate raises.
Vanhanen, speaking at a Centre Party delegate council meeting, called for the tax increases to come into effect on high income earners for a period of five years once the current economic recovery has stabilised.
Helsingin Sanomat reports that Vanhanen further outlined his proposal by explaining that the increases would be applicable to the top ten percent of Finnish income earners. The proposed rise would not, however, apply to the top tier of very wealthy Finns which number around 260,000.
The National Coalition Party’s Minister of Finance Jyrki Katainen has spoken out against the Prime Minister’s proposal. “If we did that, taxation of earned income and capital gains would diverge even more,” said Katainen.
Vanhanen has stated that his wish is for higher income earners to contribute an additional EUR 200 million into state coffers each year. This would equate to around EUR 770 annually for each person that falls into this bracket.
Vanhanen also aims to collect an additional EUR 2 billion in further indirect taxes. To do so through the VAT system would mean a rise of four percentage points, although the Prime Minister has claimed that increases on energy and environmental protection taxes would contribute. Given that such taxes are applicable to all income earners, Vanhanen has said that it is appropriate that higher income earners are subjected to increased taxation.
Vanhanen has stated that the proposed increases would come into effect after the recession, namely when the next government has taken up office. Finnish parliamentary elections are currently scheduled for 2011.
Tags: Capital Gains, Delegate Council, Economic Recovery, Environmental Protection, Eur 2, Finns, Income Earners, Income Tax, Indirect Taxes, Jyrki Katainen, Matti Vanhanen, Minister Of Finance, National Coalition Party, Parliamentary Elections, Percentage Points, Prime Minister, Recession, State Coffers, Taxation, Vat System
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Thursday, December 3rd, 2009
I’d be more sanguine about all of this if there were any indications that private, final demand is taking off — consumers, business investment, whatever. But I haven’t seen anything suggesting that sort of thing.
The chances of a relapse into recession seem to be rising.
I’d be more sanguine about all of this if there were any indications that private, final demand is taking off — consumers, business investment, whatever. But I haven’t seen anything suggesting that sort of thing.
The chances of a relapse into recession seem to be rising.
Paul Krugman in NY Times
Tags: Business Investment, Consumers, Double Dip, Ny Times, Paul Krugman, Recession, Relapse
Posted in Iceland, Market | No Comments »
Wednesday, December 2nd, 2009
According to Google Zeitgeist, Iceland was the third most searched word regarding economic issues in the year 2009.
It’s the Economy
crisis
cash for clunkers
iceland
california
recession
obama
unemployment rate
green
great depression
inflation
The full list in the It’s the economy section
1. crisis
2. cash for clunkers
3. iceland
4. california
5. recession
6. obama
7. unemployment rate
8. green
9. great depression
10. inflation
Tags: Economic Issues, Economy Crisis, Economy Section, Google, Google Zeitgeist, Great Depression, Iceland, Inflation, Recession, Unemployment Rate
Posted in Iceland, Market | No Comments »
Friday, November 20th, 2009
According to an economic forecast by the Organisation for Economic Co-operation and Development (OECD), the global crisis is more severe in Iceland than in other OECD countries. Recession measures seven percent in Iceland this year, compared to the 3.5 percent average.
Tags: Development Oecd, Economic Forecast, Global Crisis, Iceland, Measures, Oecd Countries, Recession
Posted in Iceland | No Comments »
Wednesday, September 16th, 2009
Gylfi Arnbjornsson, president of the Icelandic Confederation of Labour, said he hopes the contraction of Iceland’s national production has more or less come to a halt, in line with what Paul Thomsen, chair of the IMF Iceland Committee said on television yesterday. The public have not yet seen the worst of the recession though, Arnbjornsson warns.
Paul Thomsen, deputy director of the International Monetary Fund and head of its Iceland Committee, said yesterday that he is fairly sure Iceland has reached the bottom of its recession. Thomsen was being interviewed by Danish television at the time, mbl.is reports.
Thomsen summarised the IMF’s three main policy tools in Iceland and said he feels they are working well. Firstly, improved stability of the Icelandic krona exchange rate and the reopening of free currency trade are progressing well, he said. Secondly, it has been decided to suspend cuts to state finances, and thirdly, the Icelanders have received international loans to help the recovery.
Gylfi Arnbjornsson at the Icelandic Confederation of Labour said that businesses still fear the high interest rate is stifling economic development and said it remains clear that the government has not yet managed to balance its income against its outgoings.
Tags: Confederation, Contraction, Currency Trade, Danish Television, Deputy Director, Economic Development, Free Currency, High Interest Rate, Icelandic Krona, Imf, International Loans, International Monetary Fund, Krona Exchange Rate, Labour, Optimism, Outgoings, Paul Thomsen, Policy Tools, Recession, State Finances
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Tuesday, September 15th, 2009
Norway’s left-leaning government coalition has won the country’s general election by a narrow margin.
The coalition, led by the Labour Party, is widely felt to have handled the current recession well – as can be seen from Norway’s impressively low unemployment rate and its forecasted economic growth in 2010.
The victory makes Prime Minister Jens Stoltenberg’s government the first to survive re-election in 16 years.
The Labour, Centre Green and Socialist coalition secured 86 seats in parliament – just one more than the minimum needed for a majority, EuroNews reports.
Tags: Economic Growth, General Election, Government Coalition, Jens Stoltenberg, Labour Party, Narrow Margin, Norway, Norwegian Government, Parliament, Prime Minister, Recession, Socialist, Unemployment Rate, Victory
Posted in Iceland | No Comments »
Saturday, September 5th, 2009
Many other economies have recently been faced with a much greater recession than Iceland. In Lithuania for example, the recession amounted to 20,4% in the second quarter of 2009 and to 18,2% in Latvia.
Tags: Face, Iceland, Lithuania, Many Nations, Recession, Second Quarter
Posted in Iceland | No Comments »
Friday, September 4th, 2009
It is not a good time to be an Icelander. It’s not just in the pocket that Icelanders are feeling the pain of recession, but also in their national pride.
Tags: Banks, Good Time, Iceland, National Pride, Oecd, Recession
Posted in Iceland | No Comments »